GSK plc
GSK plc is a British multinational pharmaceutical and biotechnology company. It was established in 2000 by a merger of Glaxo Wellcome and SmithKline Beecham, which was itself a merger of a number of pharmaceutical companies around the Smith, Kline & French firm. It is headquartered in London, England.
GSK is the tenth-largest pharmaceutical company and No. 294 on the 2022 Fortune Global 500, ranked behind other pharmaceutical companies China Resources, Sinopharm, Johnson & Johnson, Pfizer, Roche, AbbVie, Novartis, Bayer, and Merck Sharp & Dohme.
The company has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. As of February 2024, it had a market capitalisation of £69 billion, the eighth largest on the London Stock Exchange.
The company developed the first malaria vaccine, RTS,S, which it said in 2014, it would make available for five per cent above cost. Legacy products developed at GSK include several listed in the World Health Organization's List of Essential Medicines, such as amoxicillin, mercaptopurine, pyrimethamine, and zidovudine.
In 2012, under prosecution by the United States Department of Justice based on combined investigations of the Department of Health and Human Services, FDA and FBI, primarily concerning sales and marketing of the drugs Avandia, Paxil and Wellbutrin, GSK pleaded guilty to promotion of drugs for unapproved uses, failure to report safety data and kickbacks to physicians in the United States and agreed to pay a US$3billion settlement. It was the largest health-care fraud case to date in the US and the largest settlement in the pharmaceutical industry.
History
Glaxo Wellcome
Glaxo
Joseph Nathan and Co. was founded in 1873, as a general trading company in Wellington, New Zealand, by a Londoner, Joseph Edward Nathan. In 1904, it began producing a dried-milk baby food from excess milk produced on dairy farms near Bunnythorpe. The resulting product was first known as Defiance, then as Glaxo, and sold with the slogan "Glaxo builds bonnie babies." The Glaxo Laboratories sign is still visible on what is now a car repair shop on the main street of Bunnythorpe. The company's first pharmaceutical product, released in 1924, was vitamin D.Glaxo Laboratories was incorporated as a distinct subsidiary company in London in 1935. Joseph Nathan's shareholders reorganised the group's structure in 1947, making Glaxo the parent and obtained a listing on the London Stock Exchange. Glaxo acquired Allen & Hanburys in 1958. The Scottish pharmacologist David Jack was hired as a researcher for Allen & Hanburys a few years after Glaxo took it over; he went on to lead the company's research and development until 1987. After Glaxo bought Meyer Laboratories in 1978, it began to play an important role in the US market. In 1983, the American arm, Glaxo Inc., moved to Research Triangle Park and Zebulon in North Carolina.
Burroughs Wellcome
Burroughs Wellcome & Company was founded in 1880, in London by the American pharmacists Henry Wellcome and Silas Burroughs. The Wellcome Tropical Research Laboratories opened in 1902. In the 1920s, Burroughs Wellcome established research and manufacturing facilities in Tuckahoe, New York, which served as the US headquarters until the company moved to Research Triangle Park in North Carolina in 1971. The Nobel Prize winning scientists Gertrude B. Elion and George H. Hitchings worked there and invented drugs still used many years later, such as mercaptopurine. In 1959, the Wellcome Foundation bought Cooper, McDougall & Robertson Inc to become more active in animal health.When Burroughs Wellcome decided to move its headquarters, the company selected Paul Rudolph to design its new building. The Elion-Hitchings Building "was celebrated worldwide when it was built," according to Paul Rudolph Heritage Foundation president Kelvin Dickinson. Alex Sayf Cummings of Georgia State University wrote in 2016, that the "iconic building helped define the image of RTP," saying, "Love it or hate it, Rudolph's design remains an impressively audacious creative gesture and an important part of the history of both architecture and Research Triangle Park." United Therapeutics, which bought the building in 2012, announced plans in 2020, to tear it down.
Merger
Glaxo and Wellcome merged in 1995, to form Glaxo Wellcome plc. The merger was then considered the biggest in the UK corporate history. Glaxo Wellcome restructured its R&D operation that year, cutting 10,000 jobs worldwide, closing its R&D facility in Beckenham, Kent, and opening a Medicines Research Centre in Stevenage, Hertfordshire. Also that year, Glaxo Wellcome acquired the California-based Affymax, a leader in the field of combinatorial chemistry.By 1999, Glaxo Wellcome had become the world's third-largest pharmaceutical company by revenues, with a global market share of around 4 per cent. Its products included Imigran, salbutamol , Zovirax, and Retrovir and Epivir. In 1999, the company was the world's largest manufacturer of drugs for the treatment of asthma and HIV/AIDS. It employed 59,000 people, including 13,400 in the UK, had 76 operating companies and 50 manufacturing facilities worldwide, and seven of its products were among the world's top 50 best-selling pharmaceuticals. The company had R&D facilities in Hertfordshire, Kent, London and Verona, and manufacturing plants in Scotland and the north of England. It had R&D centres in the US and Japan, and production facilities in the US, Europe and the Far East.
SmithKline Beecham
Beecham
In 1848, Thomas Beecham launched his Beecham's Pills laxative in England, giving birth to the Beecham Group. In 1859, Beecham opened its first factory in St Helens, Lancashire. By the 1960s, Beecham was extensively involved in pharmaceuticals and consumer products such as Macleans toothpaste, Lucozade and synthetic penicillin research.SmithKline
opened his first pharmacy in Philadelphia in 1830. In 1865, Mahlon Kline joined the business, which 10 years later became Smith, Kline & Co. In 1891, it merged with French, Richard and Company, and in 1929, changed its name to Smith Kline & French Laboratories as it focused more on research. Years later it bought Norden Laboratories, a business doing research into animal health, and Recherche et Industrie Thérapeutiques in Belgium in 1963, to focus on vaccines. The company began to expand globally, buying seven laboratories in Canada and the United States in 1969. In 1982, it bought Allergan, a manufacturer of eye and skincare products.Smith Kline & French merged with Beckman Inc. in 1982, and changed its name to SmithKline Beckman. In 1988, it bought International Clinical Laboratories.
Merger
In 1989, SmithKline Beckman merged with Beecham Group to form SmithKline Beecham P.L.C.. The headquarters moved from the United States to England. To expand R&D in the United States, the company bought a new research center in 1995; another opened in 1997, in England at New Frontiers Science Park, Harlow.2000: Glaxo Wellcome and SmithKline Beecham merger
Glaxo Wellcome and SmithKline Beecham announced their intention to merge in January 2000. The merger was completed on 27 December that year, forming GlaxoSmithKline. The company's global headquarters were at GSK House, Brentford, London, officially opened in 2002, by then-Prime Minister Tony Blair. The building was erected at a cost of £300million and as of 2002 was home to 3,000 administrative staff.2001–2010
GSK completed the acquisition of New Jersey–based Block Drug in 2001, for. In 2006, GSK acquired the US-based consumer healthcare company CNS Inc., whose products included Breathe Right nasal strips and FiberChoice dietary supplements, for US$566million in cash.Chris Gent, previously CEO of Vodafone, was appointed chairman of the board in 2005. GSK opened its first R&D centre in China in 2007, in Shanghai, initially focused on neurodegenerative diseases. Andrew Witty became the chief executive officer in 2008. Witty joined Glaxo in 1985, and had been president of GSK's Pharmaceuticals Europe since 2003.
In 2009, GSK acquired Stiefel Laboratories, then the world's largest independent dermatology drug company, for. In November 2009, the FDA approved GSK's vaccine for 2009 H1N1 influenza protection, manufactured by the company's ID Biomedical Corp in Canada. Also in November 2009, GSK formed a joint venture with Pfizer to create ViiV Healthcare, which specializes in HIV research. In 2010, the company acquired Laboratorios Phoenix, an Argentine pharmaceutical company, for US$253m, and the UK-based sports nutrition company Maxinutrition for £162million.
2011–2022
In 2011, in a US$660-million deal, Prestige Brands Holdings took over 17 GSK brands with sales of US$210million, including BC Powder, Beano, Ecotrin, Fiber Choice, Goody's Powder, Sominex and Tagamet. In 2012, the company announced that it would invest £500million in manufacturing facilities in Ulverston, northern England, designating it as the site for a previously announced biotech plant. In May that year it acquired CellZome, a German biotech company, for US$98million, and in June, worldwide rights to alitretinoin, an eczema drug, for US$302million. In 2013, GSK acquired Human Genome Sciences for US$3billion; the companies had collaborated on developing the lupus drug Belimumab, albiglutide for type 2 diabetes, and darapladib for atherosclerosis, and in September, sold its beverage division to Suntory. This included the brands Lucozade and Ribena; however, the deal did not include Horlicks.In March 2014, GSK paid US$1billion to raise its stake in its Indian pharmaceutical unit, GlaxoSmithKline Pharmaceuticals, to 75 per cent as part of a move to focus on emerging markets. In April 2014, Novartis and Glaxo agreed on more than US$20billion in deals, with Novartis selling its vaccine business to GSK and buying GSK's cancer business. In February 2015, GSK announced that it would acquire GlycoVaxyn, a Swiss pharmaceutical company, for US$190million, and in June that year that it would sell two meningitis drugs to Pfizer, Nimenrix and Mencevax for around US$130million.
Philip Hampton, at that time chair of the Royal Bank of Scotland, became GSK chairman in September 2015.
On 31 March 2017, Emma Walmsley became CEO. She is the first female CEO of the company.
In December 2017, Reuters reported that Glaxo had increased its stake in its Saudi Arabian unit to 75% taking over control from its Saudi partner Banaja KSA Holding Company.
With respect to rare diseases, the company divested its portfolio of gene therapy drugs to Orchard Therapeutics in April 2018. In November 2018, Reuters reported that Unilever was in prime position to acquire GSK's interest in its Indian unit, GlaxoSmithKline Consumer Healthcare Ltd, in a sale that could generate around US$4billion for the company. Nestlé and Coca-Cola have also been reported to be interested in the business unit as they look to strengthen their presence in India. On 3 December 2018, GSK announced that Unilever would acquire the Indian-listed GlaxoSmithKline Consumer Healthcare business for US$3.8billion. Unilever will pay the majority of the deal in cash, with the remaining being paid in shares in its Indian operation, Hindustan Unilever Limited. Upon completion, GSK will then own around 5.7% of Hindustan Unilever Limited, selling those shares in a number of tranches. The same day, the company also announced it would acquire oncology specialist, Tesaro, for US$5.1billion. The deal will give GSK control of ovarian cancer treatment, Zejula - a member of the class of poly ADP ribose polymerase inhibitors.
In October 2019, GSK agreed to sell its rabies vaccine, RabAvert, and its tick-borne encephalitis vaccine, Encepur, to Bavarian Nordic for US$1.06billion.
In July 2020, GSK acquired a 10% stake in German biotech company CureVac.