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GlaxoSmithkline

Date post: 29-Oct-2014
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This presentation is an overview of GlaxoSmithkline,with a detailed review of its best-selling product, Advair. This project was presented as part of an assignment for the Introduction to Biotech Industry course at Georgetown University.
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Improving Health and Quality of Life Do More, Feel Better, Live Longer Zuhal Tompkins Raman Goyal Ramola Chendvankar Ruchi Shah Elias Sobrino
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Page 1: GlaxoSmithkline

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Zuhal Tompkins Raman GoyalRamola ChendvankarRuchi Shah Elias Sobrino

Page 2: GlaxoSmithkline

Improving Health and Quality of Life Do More, Feel Better, Live Longer

AGENDA:

Introduction / Company Overview

Zuhal Tompkins, CEO

Research and Development

Ramola Chendvankar, CSO

Raman Goyal, CSO

Marketing and Commercialization

Ruchi Shah, CCO

Financial Outlook

Elias Sobrino, CFO

Page 3: GlaxoSmithkline

GSK Overview

• The world's second largest pharmaceutical company • Headquartered in the UK and with operations based in the US• ZANTAC• 40 plants throughout the world• Presence in almost 100 countries• Listed on London and New York stock exchanges.• Revenue of £22.7 billion• Net Income of £7.8 billion in 2007

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 4: GlaxoSmithkline

History / Mile Stones of GSK

1830 - John K Smith opens his first drugstore in Philadelphia.

1842 - Thomas Beecham launches the Beecham’ Pills business in England.

1873 - Joseph Nathan establishes Joseph Nathan and Company, the foundation for the

Glaxo Company to be formed later.

1881 - Burroughs Wellcome & Company is established in London

1989 - SmithKline and Beecham merge to form SmithKline Beecham.

1995 - Glaxo and Wellcome merge to form Glaxo Wellcome.

2001 - GlaxoSmithKline is formed by the merger of Glaxo Wellcome and SmithKline

Beecham.

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 5: GlaxoSmithkline

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Our MissionOur global quest is to improve the quality of human life by enabling people to do more, feel better, and live longer.

Our Strategy Our strategy is to strive for excellence in the following five key areas of our business:

1. Optimising the performance of key products– achieving worldwide sales force excellence – achieving Pharmaceutical and Consumer Healthcare marketing

excellence – maintaining the highest ethical standards (intellectual property )– improving the cost-effectiveness of operations

2. Delivering the product pipeline for patients3. Being the best place for the best people to do their best work 4. Improving access to medicines 5. Maximising total shareholder return (TSR)

Page 6: GlaxoSmithkline

Andrew Philip Witty - CEO

Base Salary:

$1.7 million

Chief Executive Officer on 21 May 2008

Joined Glaxo in 1985

Held a variety of roles in the UK business from sales representative to Director of Pharmacy and Distribution.

43-year-old

WITTY’s GOALS

Plans to radically alter GSK’s R&D work

Shifting more to a biotech approach

Set up a venture arm to invest in promising new therapies

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 7: GlaxoSmithkline

Extensive Pipeline

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 8: GlaxoSmithkline

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 9: GlaxoSmithkline

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Research and Development

Raman Goyal

Ramola Chendvankar

Page 10: GlaxoSmithkline

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 11: GlaxoSmithkline

What is Asthma???

Chronic inflammatory disorder of the airways.

Can be controlled and treated.Not the same as allergies.Not contagious.Increased bronchial hyper

responsiveness to a variety of stimuli.

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 12: GlaxoSmithkline

Symptoms and Severity of Asthma

Symptoms of asthma

Coughing

Shortness of breath

Wheezing

Tight chest/chest pain

In severe cases asthma can be deadly

Severity of asthma

Mild intermittent

Mild persistent

Moderate persistent

Severe persistent

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 13: GlaxoSmithkline

Causes of Asthma

Causes of Asthma:

UNKNOWN

Asthma triggers:

Inhaled allergens(specific).

Irritants(non specific).

Contaminants.

Genetic factors.

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 14: GlaxoSmithkline

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 15: GlaxoSmithkline

Diagnosis of Asthma

Pulmonary Function Tests.(VC,PEFR,FEV1)

Allergy Test.

Other Tests(Blood count, chest and sinus xrays, CT scans etc).

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 16: GlaxoSmithkline

Asthma Medications

RELIEVERS:(Relaxes airways)examples:

VentolinBricanylAiromirSalbutamol

COMBINATION MEDICATION:ADVAIRSymbicort

CONTROLLERS:(Decreases swelling and mucus)examples:

PulmicortPrednisoneSEREVENTAccolate

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 17: GlaxoSmithkline

Advair Diskus

• ADVAIR DISKUS first dual acting asthma medication Approved for use in the US.

• ADVAIR DISKUS is a combination product containing a corticosteroid and a long-acting beta2-adrenergic agonist

• ADVAIR DISKUS acts on the 2 main components of asthma

• Inflammation • Constriction of the artery.• Advair reduces exacerbation in COPD

by 30%

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 18: GlaxoSmithkline

Chronic Obstructive Pulmonary Disease (COPD)

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 19: GlaxoSmithkline

Components of ADVAIR DISKUS

Fluctisone propionate

• Corticosteroid • Anti inflammatory activity.• Inhibits the release of mucus • Reduce swelling• Breathing Easier

Salmetrol

• B2 adrenogonist• Activates adenyl cyclase• ATP to cyclic AMP• Relaxation of bronchial

muscles• Breathing easier

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 20: GlaxoSmithkline

Advair Diskus Vs Its individual components

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 21: GlaxoSmithkline

Composition of Advair diskus

• Disposible purple device 60 blisters

Composition• Advair Diskus 100/50 • Advair Diskus 250/50 • Advair Diskus 500/50

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 22: GlaxoSmithkline

How to use Advair Diskus

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 23: GlaxoSmithkline

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Marketing and Commercialization

Ruchi Shah, CCO

Page 24: GlaxoSmithkline

Strategy

• Well-positioned to peers.

• Broad-based, geographically-diverse and well-balanced business.

• Improved pipeline productivity.

• Reduce expenditure, work closely with customers. • Use opportunities in the growing healthcare economies.

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 25: GlaxoSmithkline

Our Products

• Prescription medicines: Treatments for asthma, HIV/AIDS, malaria, depression, migraine, diabetes, heart failure, digestive conditions and cancer.

• Vaccines: Over 25 vaccines to protect against illnesses such as hepatitis A and B, diphtheria, tetanus, whooping cough, typhoid and influenza.

• Consumer healthcare: Dental health products, over-the-counter medicines and nutritional drinks. Ex. Panadol, Aquafresh, and Lucozade.

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 26: GlaxoSmithkline

Our top selling products in 2007

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Product Turnover

Seretide/Advair 3.5 £b Vaccines 2.0 £b Valtrex 934 £m Lucozade 347 £m Requip 346 £m Aquafresh 308 £m Sensodyne 293 £m Panadol 262 £m Horlicks 174 £m

Page 27: GlaxoSmithkline
Page 28: GlaxoSmithkline

Products of Companies in Phases of Development

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 29: GlaxoSmithkline

Intellectual Property

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 30: GlaxoSmithkline

Trademark & In-licensing

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 31: GlaxoSmithkline

Competitors

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Diagnose GSK’s Product Competitor and Its Product

CNS Disorders Paxil Prozac (Eli Lilly)Zoloft (Pfizer)Celexa(Forest Laboratories)

Imigran Maxalt (Merck)

Respiratory Advair SereventFlixotide

Singular (Merck)Symbicort (AstraZeneca)Spriva(Pfizer)

Anti-bacterials

Anti-malarials

AugmentinAmoxil

Malarone

Zithromax (Pfizer)Cipro (Bayer)Levaquin (J&J)

Anti-viral RetrovirEpivirCombivirZiagenAgeneraseTrizivirValtrexZovirax

Famvir (Novartis)Aciclovir

Vaccines Angerix-B Havrix

Comvax(Merck)Recombivax HB

GSK AZN MRK

Advair Symbicort Singulair

$ 6.9 billion $1.6 Billion (2007 launched)

$4.3 billion

long-acting beta antagonist

long-acting beta antagonist

leukotriene receptor antagonist

4 years old and up 4 years old and up use in children

Relatively slow slightly faster action then Advair

cannot be used to treat acute asthma attacks

Effective Effective less effective than ICSs

Page 32: GlaxoSmithkline

SWOT Analysis

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Strengths

Strong sales growth forecast from launch portfolio in the 2006-2012 period

Extensive early to mid stage R&D pipeline driven by CEDD

Vast sales and marketing force through mergersStrong capability, leadership and experience in

pharmaceutical management strategiesPositive Cash Reserves

Weaknesses

An aging portfolio of products heavily exposed to generic competition

High dependence on respiratory and CNS therapy markets (low growth)

Failure to diversify and strengthen product portfolio and lack of novel product launches since 2002

Impact of safety issues relating to AvandiaRecently expired patents

Opportunities

CEDD’s potential to deliver strong sales growth in the future as demonstrated by launch portfolio forecastProduct launches such as Tykerb and Cervarix (high

growth oncology market)Recent Cost cutting initiatives

Strong forecast sales growth from vaccine products in the 2006-2012 period could support performance of

non-vaccine pharma products

Threats

Anticipated high exposure to generic competition over the 2006-2012 period

Forecast negative sales growth performance over the 2006-2012 could drive leadership to

change business modelStrong competition over the next four years

Large scale M&A activity

Page 33: GlaxoSmithkline

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Financials

Elilas Sobrino, CFO

Page 34: GlaxoSmithkline

Income Statement

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 35: GlaxoSmithkline

Balance Sheet

Page 36: GlaxoSmithkline

Cash Flow

Improving Health and Quality of Life Do More, Feel Better, Live Longer

Page 37: GlaxoSmithkline

Key facts• Every second...

we distribute more than 35 doses of vaccine• Every minute...

more than 1,100 prescriptions are written for GSK products• Every hour...

we spend more than £300,000 (US$562,000) to find new medicines

• Every day...more than 200 million people around the world use a GSK brand toothbrush or toothpaste

• Every year...our factories produce 9 billion Tums tablets, 6 billion Panadol tablets and 600 million tubes of toothpaste

Improving Health and Quality of Life Do More, Feel Better, Live Longer


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