GSK Pharmaceutical Company SWOT Analysis Report
Summary
- GSK accounted for 2.3% pharmaceutical sales in the BRIC countries with $1.3bn sales in 2009. The company had year-on-year growth of 5.8%.
- Brazil was GSK’s largest market with sales of $421m equivalent to 32% of the company’s total BRIC sales. It had modest single digit growth of 3.6% in this market.
- General anti-infectives were the leading drug class for GSK in the BRIC markets valued at $355m in 2009. It provided 27% of sales and year-on-year growth of 9.2%. Augmentin, Zeffix and Zinacef were the leading anti-infective brands.
- The respiratory drug Seretide was the leading brand for GSK in the BRIC markets with sales of $117m and year-on-year growth of 12.3%.
- GSK is growing its vaccines business through partnerships with Brazil’s Fiocruz and China’s Shenzhen Neptunus, and increased investment in India for vaccines development.
Company overview
GSK,
the fourth largest pharmaceutical company in the world, was formed through the
merger of Glaxo Wellcome and SmithKline Beecham in 2000. The company
headquartered in the UK is primarily involved in the following business areas:
prescription products, vaccines and consumer healthcare. It manufactures drugs
for disease areas including asthma, mental health, digestive disorders and
infections. Recently, GSK and Pfizer consolidated their anti-HIV efforts to
form a new company called ViiV Healthcare. A significant proportion of the
company’s activities will be in the emerging markets.
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Table 37: Overview of GSK
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Headquarters
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London
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Global sales
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$35bn
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BRIC sales
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$1.3bn
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Market share (% of total global sales in BRIC)
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3.8
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Major therapeutic focus
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General anti-infectives
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Source: IMS Health, copyright ©, reprinted with permission, company
reports
Therapeutic focus
The
emerging markets still experience a high prevalence of infectious diseases
although in recent years there has been increasing incidence of chronic disease
such as cerebrovascular or cardiovascular disorders. Anti-infectives were the
largest drug class accounting for 27% of GSK’s BRIC sales. Augmentin, Zeffix,
Zinacef were among the top selling anti-infective brands in the BRIC countries
for GSK. Seretide used in the management of asthma and chronic obstructive
pulmonary disease was the main driver of the performance of GSK’s respiratory
therapeutic franchise in 2009.
Geographic focus
Brazil
with sales of $421m in 2009 accounted for 32% of GSK’s BRIC sales and was GSK’s
largest market among the BRIC countries. Dermatologicals were GSK’s top selling
therapeutic drug class in Brazil in 2009 accounting for 23.8% of the company’s
Brazilian sales. GSK had sales of $365m in 2009 in India at 6.8% year-on-year
growth. Anti-infectives was the largest therapeutic category for GSK in India
with sales equivalent to 30.5% of the company’s sales in that market.
Anti-infectives were also the largest selling therapy franchise for Bayer in
China, accounting for 47.7% of sales.
Table 38: GSK’s sales distribution across BRIC countries, 2009
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Company
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Sales 2009 ($m)
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Sales growth, 2008–09 (%)
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Sales share, 2009 (%)
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CAGR, 2005–09 (%)
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Brazil
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421
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3.6
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32.0
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12.4
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India
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365
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6.8
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27.7
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4.8
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China
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337
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24.7
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25.6
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20.9
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Russia
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194
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-14.5
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14.7
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15.0
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Total
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1,317
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5.8
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100.0
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12.1
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Source: IMS Health, copyright ©, reprinted with permission
Marketed products
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Table 39: Leading brands of GSK in the BRIC market, 2009
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Brands
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Sales 2009 ($m)
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Sales growth, 2008–09 (%)
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Sales share, 2009 (%)
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CAGR, 2005–09 (%)
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Seretide
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117
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12.3
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8.9
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32.5
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Augmentin
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70
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2.2
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5.3
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12.9
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Zeffix
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62
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20.3
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4.7
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19.5
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Zinacef
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40
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25.0
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3.0
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13.8
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Eno
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38
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1.6
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2.9
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21.6
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Fraxiparine
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36
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17.9
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2.7
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18.3
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Seroxat
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34
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8.6
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2.6
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11.9
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Fortum
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30
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7.5
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2.3
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8.2
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Ventolin
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29
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-8.3
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2.2
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2.4
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Ultra corega
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29
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12.6
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2.2
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28.1
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Top 10
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485
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10.0
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36.8
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17.8
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Others
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833
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3.5
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63.2
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9.3
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Total
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1,317
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5.8
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100.0
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12.1
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Source: IMS Health, copyright ©, reprinted with permission
R&D
GSK’s
R&D centers are located in the UK, US, Europe and China. The center in
China focuses on research in neurodegenerative diseases including Alzheimer’s
disease, Parkinson’s disease and neuro-immunological disorders and heads
R&D operations in the Asia-Pacific region. GSK concentrates on research in
disorders of the respiratory, CNS, cardiovascular, metabolic and, urogenital
system. GSK has launched a patent “Pool for Open Innovation against Neglected
Tropical Diseases”. This patent pool is a forum for sharing its intellectual
property information with regards to neglected diseases and calls for open
research for the development of new drugs.
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Table 40: GSK’s late stage R&D pipeline
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Molecule
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Indication
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Arzerra (ofatumumab)
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Chronic lymphocytic leukemia, first line therapy & use in
relapsed patients
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Benlysta
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Systemic lupus erythematosus
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Denosumab
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bone metastatic disease
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Syncriat
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Type 1 diabetes
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otelixizumab
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Type 2 diabetes
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Source: Company reports
Growth strategy
GSK
has partnered with WHO for the supply of albendazole used as a combination
therapy for the treatment of lymphatic filariasis (LF). Worldwide approximately
1.3bn people suffer from LF and India is home to almost one-third of this
population. GSK has been supplying the drug to WHO’s Global Program on LF for
over a decade. It has now dedicated its manufacturing plant in Nashik, India to
the manufacture of albendazole. The plant will account for half of the company’s
annual manufacturing capacity of albendazole for the LF program.
Partnerships and alliances
GSK
and Gilead have entered into an agreement to market Viread for the treatment of
chronic hepatitis B infection (HBV) in Asian countries. Gilead will have the
commercialization rights for the product in Hong Kong, South Korea, Taiwan and
Singapore while GSK will hold exclusive commercializing and registering rights
in mainland China. This deal will strengthen GSK’s expansion into China where
hepatitis is a major cause of morbidity.
GSK
has partnered with Brazil’s Oswaldo Cruz Foundation (Fiocruz) to develop a
vaccine for dengue fever. Globally about 2.5bn people are at risk of infection
by this mosquito-borne disease. Furthermore, GSK will also transfer the technology
for Synflorix, its 10-valent pneumococcal pediatric vaccine to Fiocruz. The
Brazilian government is planning to incorporate the vaccine in its national
immunization program. In China, GSK and Shenzhen Neptunus have partnered to
develop an influenza vaccine. GSK will have a 40% share in the venture and
plans to gain a majority stake in the company over a span of two years. In
India, GSK plans to invest $86m to manufacture vaccines locally and thus reduce
the prices of already marketed products.
GSK
has taken steps to enter alliances with domestic companies to market its
established products. This approach will give GSK incremental revenue increases
and allow it to take advantage of the local knowledge of its partners. GSK has
signed an agreement with Dr. Reddy’s Laboratories, India to market products
manufactured by the Indian drug maker in Latin America, Asia Pacific, Africa
and Middle East. GSK will gain access to Dr. Reddy’s marketed brands in
therapeutic areas including cardiovascular, diabetes, oncology, and
gastroenterology, as well as its pipeline.
GSK
also partnered with Amgen to commercialize Prolia (denosumab), a monoclonal
antibody indicated for treatment of postmenopausal osteoporosis. GSK will
market the drug in countries including China, India, Brazil and South Korea,
where Amgen has no presence. Prolia prevents bone loss and increases bone
mineral density (BMD). It is also being studied for cancer-treatment induced
bone loss, multiple myeloma and bone erosion in rheumatoid arthritis.
Product launches
GSK’s
rotavirus vaccine received WHO endorsement for its safety and efficacy in
preventing rotavirus related diarrhea and gastroenteritis. The vaccine has been
approved in the national immunization programs of five Latin American countries
including Brazil and is purchased by Pan American Health Organization (PAHO),
UNICEF and other organizations for use in mass immunization programs.
Mergers and acquisitions
GSK
acquired Genelabs Technologies for $57m in October 2008 thus gaining access to
the latter’s drug discovery platform concerning hepatitis C virus. Genelabs
will augment GSK’s drug discovery system with respect to development of novel
therapies for hepatitis C.
SWOT
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Table 41: SWOT analysis – GSK
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Strengths
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Weaknesses
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GSK is the fourth largest company in the world and has a strong
anti-infectives portfolio. Anti-infectives represent the largest therapy area
in the BRIC markets.
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Absence of a generic division to boost sales in emerging markets.
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GSK is the second largest vaccine manufacturer in the world and
has further strengthened its position with recent FDA approval for its
cervical cancer and influenza vaccine.
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Opportunities
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Threats
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GSK's rotavirus vaccine approved for use in the National
Immunization Program in five Latin American countries including Brazil.
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Emergence of side effects related issues with Avandia may trickle
into BRIC markets. The product has been withdrawn from Europe.
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GSK’s agreement with Dr. Reddy’s Laboratories strengthens its
presence in India.
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Increased risk of generic erosion of key respiratory brands
Seretide and Advair.
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Collaboration with Brazil’s Fiocruz provides access to the
country’s national immunization program. Similarly, the alliance with
Shenzhen Neptunus reinforces its position in the Chinese vaccine market.
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Acquired Genelabs Technologies in 2009 to gain access to a
hepatitis C vaccine portfolio.
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