05.11.02

1. The Company 2. Who, where, how much? 3. Influence 4. Corporate Crimes 5. More information contacts and links

GlaxoSmithKline plc
A Corporate Profile

By Corporate Watch UK
Completed November 2002

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1. The Company

Glaxo Wellcome plc and SmithKline Beecham plc merged in 2001 to become GlaxoSmithKline plc (GSK), the largest pharmaceutical company in the world.
At present, private pharmaceutical companies control the development of new medicines. Profit margins, not global health needs, are what determine the next new drug. GlaxoSmithKline’s corporate motto is ‘committed to improving the quality of human life’[1]. GSK has shown it’s commitment by suing the South African Government for trying to supply AIDS victims with medicine they can afford [2], knowingly producing toxic drugs [3], and by emitting more carcinogens than almost any other chemical producer in the UK.[4]

Name
GlaxoSmithKline plc

Industry areas
Prescription Medicines, Vaccines, and Consumer Health Products [i.e. toothpaste, nutritional drinks and over the counter (OTC) medicine]

Market share and importance
GlaxoSmithKline is the world’s largest pharmaceutical company. In 2000 GlaxoWellcome and SmithKline Beecham had a seven per cent share of the global pharmaceutical market, combined. In addition, the two combined companies accounted for 26 per cent of all vaccine sales, and 17 per cent of all anti-invectives (antibiotics, etc.).[5

History
In January 2001 Glaxo Wellcome plc and SmithKline Beecham plc officially merged to become GlaxoSmithKline plc. GSK’s history dates back to 1715, when Plough Court pharmacy, a predecessor to SmithKline Beecham, was opened in London.[6]

Glaxo Laboratories Limited (the predecessor to Glaxo Wellcome) was set up in 1929, with director Alec Nathan. “Nathan formed the company when it was discovered that their dried baby food ‘Glaxo’ was the cause of rickets in children. The first product Glaxo Laboratories Ltd produced was therefore Ostelin, a vitamin D concentrate to replace vitamins that were destroyed in the food drying process.” (Corporate Watch Magazine, Issue 10).[7]

From the 1930s onwards there was a flurry of mergers and acquisitions. The business of Glaxo Laboratories Ltd expanded greatly with the new market created by the founding of the National Health Service (NHS).[8] And in 1972 Beecham Group Ltd made an unsuccessful bid to buy Glaxo Group Ltd. [9]

Products [10]
GlaxoSmithKline’s pharmaceuticals include the antidepressant Paxil/Seroxat the HIV/AIDS treatment Combivir, Zofran, a treatment for alcoholism, and Avendia a treatment for Type 2 diabetes.

Their Consumer Health Products [see Corporate Crimes, Animal Welfare] include Aquafresh Toothpaste, Tums antacid, Nicorette and the ‘nutritonal drinks’ Horlick’s, Lucozade and Ribena.

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