Paper presented by GSK's Developing Countries Operating Unit

Developing Countries Operating Unit

1st Euro-Africa Health Investment Conference: MediPharm, March 26-27, London

Craig WilliamsDirector, Vaccines and Disease of the Developing World

The DC operating unit

Established in August 2010 - to increase patient access to GSK medicines and vaccines while expanding its presence and helping it build a sustainable business in developing countries

Tasked with bringing a dedicated GSK focus to expanding access to medicines for around 800 million people in the world’s least developed countries (LDCs)

The Markets Covers 50 countries, 49 defined by UN as least developed, over half of whom survive on less than $1 a day

currently supply medicines to 37 of the 49 LDCs and employ 650 people across the unit.

GSK’s operating model in Developing Countries

Lower price/higher volume

Volume incentive

Longer-term return on investment

Patented medicines & vaccines capped

at 25% of UK price

20% of profit reinvested in healthcare

infrastructure in country)

The target is a five-fold growth in

volume of medicines & vaccines supplied

to these countries by 2015.

Strategy

1. Vaccines

2. Product Registration/Portfolio Expansion

3. Healthcare Infrastructure

4. People

Vaccines- GAVI

Vaccines: For over 20 years we have made our entire vaccine portfolio available for expanded immunisation programmes at preferential prices to developing countries using a tiered pricing system.

GAVI Pledging Meeting – 13 June 2011

– Initial target : $3.7 billion

–Donors commitment : $4.3 billion

–Resources available for 2011-2015 : $7.6 billion

Health Infrastructure -Our commitment to reinvest 20% of profits

GSK partner with AMREF, CARE International and Save The Children to strengthen healthcare infrastructure in LDCs

To increase the numbers of trained healthcare workers in rural and marginalised communities

A sustainable model to improve healthcare infrastructure in developing countries

Supporting community healthcare workers increases access to medicines and ultimately improves health outcomes

Health Infrastructure - One Family Health

Nurse run Franchise clinic network

Currently 80 clinics in Kenya serving

500,000 patients per year

GSK announced expansion for Rwanda

in April to establish 250 health posts

over the next three years

Health Infrastructure – Anti counterfeiting Nigeria

Using SMS text technology to guarantee the quality of products

GSK added a scratch off panel on the packs to include a unique code. Patients would then text in the code (free) to a central number to authenticate the product.

R&DR&D New Business ModelsNew Business Models Health Systems

Health Systems

• R&D PPPs• WIPO Research• Open lab• Malaria screen• HIV• TB, malaria• Trust in Science (LATAM &

AFRICA)

• Tiered pricing• ViiV Healthcare• DCMA unit• CME• Voluntary licensing• Portfolio

• Branded generics• Small pack sizes• EMAP R&D

• Techonolgy transfer• Brazil JV

• Innovative pricing• Malaria • AMC

• 20% reinvestment• LF elimination• African malaria

Partnership• PHASE• Positive Action and PAFC• Humanitarian relief• De-worming programme

Access to Medicines Contributions

GSK retained ATM leadership in 2012