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Corporate Responsibility Report 2008

Our approach and contribution

GSK is committed to playing our full part in addressing healthcare challenges around the world. Our core business activity, developing and launching new medicines and vaccines, makes a significant contribution.

We recognise that the scale of these challenges requires a coordinated approach and we are looking to expand research partnerships with governments, NGOs and other companies. While support for intellectual property rights is essential to encourage innovation, we want to find ways that we can use our intellectual property flexibly to speed up the development of medicines for neglected diseases, without compromising the sustainability of our business.

There is only so much difference that our activities on R&D, pricing and working in partnerships can make while significant barriers to access remain in developing countries. Key among these barriers is the lack of healthcare infrastructure - both physical and human. Although we are not a health service provider, we want to work with others to deliver healthcare, which can include investing in infrastructure. We will seek new opportunities in this area and are already making a contribution in strengthening infrastructure.

For example in 2008 we donated equipment for a state-of–the-art laboratory at the Lagos State University College of Medicine. Professor Clement Adebamowo, Chairman of the National Health Research Ethics Committee of Nigeria, said that the new laboratory would help Nigeria regain lost ground on health research and reclaim its position as a reputable partner in education and health research.

Playing our part to address global healthcare challenges, both individually and through partnership, is not only the right thing to do, it also makes good business sense.

We work to address global healthcare challenges through action in four areas:

• Improving affordability by preferential pricing of our medicines and tiered pricing of our vaccines in the world’s poorest countries, exploring new business models in middle-income countries, and providing discount cards in developed countries
• Investing in research and development that targets diseases affecting the developing world
• Working in partnerships to research new medicines and to help deliver healthcare services
• Undertaking community investment activities and partnerships that foster effective healthcare

We recognise that the developing world in particular poses many healthcare challenges. This requires a long-term commitment. Fundamental to our approach is the need to ensure that our contribution is sustainable and is built into the way we do business.

We have a duty to try to ensure our products are used in a clinically appropriate way in all countries where they are available. This is particularly important in the case of communicable diseases, where inappropriate use of products can speed the development of resistance to treatment.

Our activities are undertaken in partnership with organisations that have relevant specialist knowledge, such as governments, international agencies, charities, other private sector organisations and academic institutions.

GSK was ranked top in the first Access to Medicines Index, published in June 2008. The Index rates companies on their performance according to eight criteria: management, influence, research and development, patenting, capacity, pricing, drug donations and philanthropy. While we retain some concerns with the methodology used in this report, we are pleased that our multi-faceted efforts to make our medicines more available have been recognised by the Index. This is testament to our innovative and sustainable approach, and the many GSK employees who contribute to our efforts to help address healthcare challenges in the developing world.