Two Compnies DRreddy and GSK

7/31/2019 Two Compnies DRreddy and GSK

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Dr Reddys & GSKIB assignment

9/26/2012

Group 1 A

Bareth M

Deepak Kumar AgarwalRohith Krishnan

Sujith P


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Indian Company

Dr. Reddys-

i.Brief Background to the Company

1. History

Dr. Reddys is one of the most successful pharmaceutical companies in India. It is a

global pharmaceutical company committed to providing affordable and innovative

medicines for healthier lives through our three core businesses: Pharmaceutical Services

and Active Ingredients, Global generics and Proprietary Products. It was founded by Dr. K

Anji Reddy in 1984 in Hyderabad, India at a capital outlay of 25 lakhs. The certificate of

incorporation is issued on 24th February 1984 and on the same day the first meeting of theboard of directors of Dr. Reddys Laboratories private limited is held at its registered office,

which was attended by Dr. K. Anji Reddy and Mrs. K. Samarajyam.

Mr. M.P. Chari, who is the General Manager of Production at Standard Organics

Limited, becomes the first Managing Director of Dr. Reddys laboratories. The same year, Dr.

Anji Reddy and Mr. Murali K. Divi (Currently Chairman of Divis Laboratories) take over

Cheminor Drugs and Murali Divi becomes the Managing Director of the company.

The construction of the first API manufacturing facility at Bollaram, Hyderabad starts

on 1st May 1984 and is successfully commissioned in June 1985. 1986 sees the companygoing public with listing in the Bombay Stock Exchange (BSE). Dr. Reddys Laboratories offers

7,50,000 equity shares of Rs. 10 each for cash at par linked to 1,50,000, 15% secured

redeemable non convertible debentures of Rs 100 each for cash at par.

Formulation Operations begin with formation of Stangen Pharmaceuticals. Mr. K.B.

Sankar Rao takes over as the production manager and Mr. T.R. Bhoopathy as the head of

marketing of the company. Stangen Pharmaceuticals starts expanding its marketing network

to Eastern, North Eastern, Northern and Central India.

Dr. Reddys becomes the first Indian pharma company to exports Norfloxacin and

Ciprofloxacin to Europe and Far East.

Its expansion state started after 1990.

22nd April 1991 sees the launch of Omez, Dr. Reddys brand of Omeprazole which

goes on to become Dr. Reddys first Rs 100 crore brand. Across India, Omez heralds the birth

of a new class of compounds in the treatment of acid-peptic disorders and revolutionizes

the treatment of acid-peptic disorders. Omez is the first brand of omeprazole to enter the

Indian market. Today, it is the top brand of omeprazole in 11 countries.


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In 1993 Dr. Reddys and Cheminor Drugs jointly establish the Dr. Reddys Research

Foundation (DRF). Dr. Reddys becomes the first company to start work on drug discovery

programs in the country

In 1994 Reddys raises USD 48 million through the GDR issue.

In 1997 Reddys became the first Indian company to out-license an original molecule

, glitazones [DRF 2593 (Balaglitazone)] to Novo Nordisk A/s of Denmark, the world leader in

the diabetes.

Dr. Reddy's becomes India's third largest pharmaceutical company with the merger

of Cheminor Drugs Limed (CDL) a group company, on December 11, 2000.

Dr. Reddys becomes the first Asia Pacific pharmaceutical company, outside Japan, to

list on the New York Stock Exchange. It listed in NYSE with the symbol RDY on April 11,

2001.

In 2012 Dr. Reddys reached US$ 2 million revenue.

2. Current Operations-

Currently Dr. Reddy's Laboratories Limited has established subsidiaries across the

globe - the USA, Germany, the UK, and Russia, to name a few. It is engaged in marketing itsproducts in more than 100 countries. Now its the 2nd largest firm in India in terms of sales,

after Ranbaxy.

Dr. Reddys is having his units throughout the world, now its operating globally.

Currently Dr. Reddys is having its

API Manufacturing Units: India 6, UK 1, Mexico 1 [All United State Food

and Drugs Administration (USFDA) approved]

Finished Dosages : India 7 [2 USFDA approved], US2 [USFDA approved]

Biologics Facility : India 1 [audited by multiple regulatory agencies]

Custom Pharma : 3 Technology Development Centers [2 in India & 1 in

Cambridge, UK] Services

R&D Centers : Integrated Product Development Organization [IPDO] in

Hyderabad, India NCE R&D center in Hyderabad, India Aurigene R&D center in

Bangalore, India


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Currently It is operating in its products in more than 100 countries with a

focus on North America, Europe, India and Russia.

3. Major Product lines-

Dr. Reddys is providing solution to all most all the diseases, it is having a vast

product lines and its are coming in the market for consumer as-

Tablets

Capsules

Body wash

Liquid Orals

Injections

Tooth filler liquid

Cream

Toothpaste

Inhalers

Cosmetics

Gel

Infusion

Topical Solution

Nasal Sprays

Powders for inhalation

Ointments

Bathing Bar

Pregnancy Testing Kit

Moreover Dr. Reddys integrated business model spanning 3 segments as follows-

1. Pharmaceutical services and Active ingredients2. Global Generics

3. Proprietary Products

1. Pharmaceuticals services and Active ingredients-Through Dr. ReddysPharmaceutical Services & Active Ingredients

(PSAI)business, which comprises theActive Pharmaceutical Ingredients (API)and Custom

Pharmaceutical Services (CPS)businesses, it offer IP advantaged, speedy product

development, cost-effective and robust manufacturing services to its customers which

includes both generic companies and innovators.


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This API business seeks to make its generics customers successful, early and

always. At the outset, Dr. Reddys enables its customers to be the first to launch a generic

product by leveraging on IP strengths. Their highly skilled API global team ensures that our

customers gain the full benefits of timely product development and supply, in line with all

regulatory and quality requirements.

Whereas the CPS business serves several 'innovators', both Big Pharma and

emerging biotech. This CPS business offers both speed and flexibility. They have the

capability to supply both small-scale clinical trial quantities and commercial-scale

requirements. The end to end services and competitive pricing of Dr. Reddys makes a

compelling value proposition to its global innovator' customers.

2. Global Generics-The Global Generics business seeks to serve the millions around the world who

find access to medicines unaffordable. Its branded generics in doctor driven markets and

unbranded generic products in distribution driven markets offer lower-cost alternatives to

highly-priced innovator brands, both directly and through key partnerships. Dr. Reddys

serve a large number of emerging markets through partnerships with GlaxoSmithKline

(GSK).

Dr. Reddys effort spans the entire value chain - from process development of

the API to submission of the finished dosage dossier to the regulatory agencies - offering

high quality products at the right time and at competitive prices. The key markets for this

are North America, India, Russia, UK and Germany.

3. Proprietary Products-The Proprietary Products business comprises ofNew Chemical Entities

(NCEs), Biosimilars and Differentiated Formulations.

In NCE, Dr. Reddys engaged in the discovery, development, and

commercialization of novel small molecule agents to address significant clinical unmetneeds. Their therapeutic areas of focus are bacterial infections, metabolic disorders, and

pain/ inflammation.

The emerging Differentiated Formulations portfolio of Dr. Reddys consists of

developing novel formulations of currently marketed drugs or combinations thereof to

enhance patient comfort. The most advanced Differentiated Formulations efforts are in

dermatology.

Whereas the Biologics business has dedicated development and

manufacturing suites for both E. coli & mammalian cell culture, conforming to the highest

development standards of cGMP, GLP and other applicable bio-safety levels, seamlessly by

a competent project management framework.


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4.Last two Years financials-

The financial report for Dr. Reddys for the last two years are as follows-

(All Figures in Rs. Million)

Income Statement Data: FY 2012 FY 2011Total revenues 96,737 74,693

Cost of revenues 43,432 34,430

Gross profit 53,305 40,263

as a % of revenues 55 54

Operating Expenses:

Selling, general andadministrative expenses

28,867 23,689

Research and developmentexpenses

5,911 5,060

Write-down of intangibleassets

1040 -

Other Operating (income) /expenses, net

(765) (1,115)

Total operating expenses 35,053 27,634

Operating income 18,252 12,629


Finance Costs, net:

Finance income 1,227 173

Finance expenses (1,067) (362)

Finance (expense) / income,net

160 (189)

Equity in loss of affiliate 54 3

Profit before income tax 18,466 12,443

Income tax benefit / (expense) (4,204) (1,403)

Profit for the year 14,262 11,040


From the above table it can be clearly noticed that Consolidated revenues of

Dr. Reddys increased by 30% to Rs. 96,737 millions that is $2.02 billion in FY2012 from Rs.

74,693 millions in FY2011.

Similarly, it has seen a net profit of Rs. 14,262 millions in FY2012 from Rs.

11,040 millions in FY2011, a growth of 29%.

It touched the $2 billion revenue in last financial yearand became the fastest

Indian company to achieve this feat.


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5.This years performance so far-

For this current financial year Dr. Reddys 1stQuarters financial report looks as

below and here we are comparing its 1stQuarters report with the same for the last years

1st Quarter-

(All Figures in Rs.Millions)

Particulars Q1 FY13 Q1 FY12

($) (Rs.) ($) (Rs.) Growth(%)

Total Revenue 457 25,406 356 19,783 28

Cost of revenues 214 11,865 166 9,228 29

Gross profit 244 13,541 190 10,555 28

Operating ExpensesSelling, general &

administrative expenses

149 8,277 122 6,755 23

Research and

development expenses

28 1,564 22 1,197 31

Other operating (income)

/ expense

(4) (218) (3) (186) 17

Results from operating

activities

70 3,918 50 2,789 41

Net finance (income) /expense

4 212 1 46 361

Share of (profit) / loss of

equity accounted

investees

(0) (19) (0) (4) 375

Profit / (loss) before

income tax

67 3,725 49 2,746 36

Income tax (benefit) /

expense

7 365 2 120 205

Profit / (loss) for theperiod

60 3,360 47 2,627 28

Here we can see that Consolidated revenues at Rs.25.4 billion in Q1 FY13,

year-on-year growth of 28%, this is driven by healthy growth in key markets of North

America, Russia & other emerging markets in Global Generics segment.

Similarly profit after tax (PAT) was recorded to be Rs.3.4 billion in Q1 FY13,

13% of revenues & recorded year on year growth of 28%.

Even During the quarter, the company launched 33 new generic products,filed 18 new product registrations.


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6. For the concerned Industry-

a. Major Brands and Sales and importance in companies portffolio-

The top-10 brands of Dr. Reddy and revenues collected from each of them are as follows-

Dr. Reddys Top-10 Brands (In Rs. Million)

Product FY 2012 FY 2011Omez 1089 1065

Nise 596 700

Stamlo 566 507

Reditux 471 405

Omez-DSR 468 377

Stamlo-Beta 358 328

Atocor 311 278Razo 306 285

Razo D 249 200

Mintop 225 209

Total 4639 3949

Here it can be clearly seen from the above table that the top 10 brands are

contributing a substantial amount of revenue to the companys overall portfolio.

b. Recently launched products, initiatives-

Dr. Reddy's Laboratories Ltd. had launched its over the counter (OTC) Fexofenadine

HCl and Pseudoephedrine extended HCl release tablets 180/240 mg on August 30th 2012.

The US Food & Drug Administration (FDA) approved this product of Dr. Reddy's Abbreviated

New Drug Application (ANDA) for Fexofenadine HCl and Pseudophendrine HCl extended

release on June 22. According to a statement made to the stock exchanges, Dr Reddy's plans

to market the product under store brand labels in the US market.

This product is a bioequivalent version of Sanofi-Aventis' Allegra D24 hour extendedrelease tablets, which received Rx-to-OTC switch approval from FDA on January 24, 2011.

Apart from this product, they came up with 14 new products in their last financial

quarter.

As a initiative they created a dedicated sales and customer service team to ensure

Dr. Reddys was responding to what mattered most to Walmart: Differentiated store brand

offerings, enhanced consumer value, best in class customer service, sales and marketing

excellence, and joint business planning. It required diligence at every step. The key

initiatives they undertook included expanding access and choice for consumers who prefercapsule form products and delivering packaging innovation with easy to open bottles.In


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many cases, these initiatives and others improved the value proposition for Walmart store

brand shoppers while providing the added benefit of enhanced environmental

sustainability. Supply chain reliability and customer service performance are the two most

critical areas for maintaining lasting partnerships and relationships with customers like

Walmart. Chris led the collaborative effort both internally and with Walmart very efficiently

to consistently deliver the right products and right quantities at the right time. This requireda team effort with supply chain network.

c. Recent coverage in the news-

Recently they were in above for the launching of their above mentioned unique new product

over the counter (OTC) Fexofenadine HCl and Pseudoephedrine extended HCl release

tablets 180/240 mg on August 30th

2012.

On 8th August 2012 they were in Business Standard for estimitating them above

Ranbaxy in terms of their Revenues in 2014 and becomes No.1 Indian pharmaceuticals

company. They are estimating their revenue to be Rs. 12,663 crore whereas Ranbaxys to be

Rs. 12,615 Crore at the end of the financial year 2013-14.

Again Dr. Reddys was in news on 4th

August 2012 in Outlook Business with a

headline asTechnological changes in US generic drugs market is causing Indian Pharmas

(Dr. Reddys) strategies as well.

On July 13, 2012 they were in Hindu Business Line as Influence is a Leadershiptoolfor the influencing leadership quality of its President and Global Chief and Quality, HR

& It.

On 12th May 2012 they were on DNA Money for their lining up of strong pipeline

with a plan to launch 15-16 new products in the US market, which is likely to contribute

one-third of their revenues.

On 14th May 2012 they were in The Economics Times as they chalked out their plan

to improve India performance being dissapoint with their growth rate in India and planed

for more FDI in international markets. But they are planning to be the leader in

Pharmaceutical sectors in India by the end of 2013-14 financial year. As told by GV Prasad,

the Chief executive of Dr, Reddys Lab., We want to grow at least 5%above the average

market growth in India. It may take us some 18 months to achieve this target.We are not

going after the low-cost generic. The idea is o make difference to affordability where it

matters. Affordability matters in products which are expensive.

This same news was published in the Mumbai edition ofThe Times Of India on 30th

June 2012, with a headline ofAffordable and innovative drugs are still the priority of Dr.

Reddys along with an interview with Mr. Satish Reddy, the MD & COO of Dr. Reddys Lab.


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Moreover Dr. Reddys was in news on 24th

April 2012 in the page ofBusiness

Standard as it was to replace DLF in Sensex from June 11, 2012. According to the

statements the average free-float market capitalisation of Dr. Reddys stood at Rs.

20,992.03 Crore in the three month ended March. During that same period, the m-cap for

DLF was Rs. 8,893.58 Crore.

ii. Brief History of IB operations-

1. When Commenced-

Dr. Reddys enters international market with exports of Methyldopa in the year

1986, just 2 yrs. After its establishment. And in 1990 it became the first Indian pharma

company to export Norfloxacin and Ciprofloxacin to Europe and Far East.

2. Chronological history of markets entered, and with which products-

Dr. Reddys entered into various foreign market in the short span of its time, they are as

follows -

1986 Enters international markets with exports ofmethyldopa

1990 - Becomes first Indian pharma company to export norfloxacin and

ciprofloxacin to Europe and Far East

1991 - Formulation exports to Russia commences

1995Dr. Reddys Research Foundation files first patent in US

1997 - Becomes first Indian company to out-license an original molecule

DRF 2593 (Balaglitazone) to Novo Nordisk

1997 - Files first ANDA with US FDA for ranitidine

1998Licences anti diabatic molecule DRF 2725 (Ragaglitazar) to Novo

Nordisk.

1999 Acquires American Remedies in India.

2001 - Becomes the first pharma company in Asia Pacific, outside of

Japan, to list on NYSE.

2001 - Obtains first ever 180-day marketing exclusivity for a generic drug

(fluoxetine 40 mg capsules) in the US

2001 - Launches its first generic product (ranitidine) the US

2005 - Acquires Roches API business in Mexico

2006 - Acquires Betapharm in Germany 2006 - Becomes an AG partner for Mercks Proscar and Zocor in the US


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2006 - Obtains 180-day marketing exclusivity for ondenesetron

hydrochloride tablets

2008 - Acquires BASFs formulation manufacturing unit at Shreveport,

Louisiana, USA

2008 - Acquires DowPharmas small molecules business at Mirfield and

Cambridge, UK 2008 - Announces launch ofUS specialty business, Promius Pharma

2011 - GlaxoSmithKline and Dr. Reddys agrees to the sale ofUS

penicillin facility and products.

2011 - FUJIFILM and Dr. Reddys establishes an exclusivejoint venture

for developing, manufacturing and promoting generic drugs in Japan

2011 - Expands its R&D centre in Cambridge, United Kingdom

3. Modes of entry chosen-

The mode of international entry that Dr Reddy chooses is the acquisition in most of the countries.They make the other countrys operations as its fully owned subsidiary. If the countries law doesnt

allow that they will go for joint venture or associations. The opening working for a new country is to

do exports with help of some agents. Then they move to joint venture or acquisitions.


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4. Organizational structure for IB operations

This is the organisation structure of Dr Reddys says all the international operation is centred around

with COO and in respective country it is done by country heads.


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4. Current size of IB operations & percentage of overall turnover-

6. Important overseas markets (currently)-

North America OTC portfolio contributed by 21% of total sales.

Russia - Highest ever quarterly sales and the oldst market..

Germany-Growth primarily coming from increase in the market share of the tender products

Europe- Association from GSK is giving improving result from these location


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GlaxoSmithKline

GSK is a science-led global healthcare company

FSK has a challenging and inspiring mission: to improve the quality of human life by enabling people

to do more, feel better and live longer. This mission gives them the purpose to develop innovative

medicines and products that help millions of people around the world.

Headquartered in the UK, GSK is a global organisation with offices in over 100 countries and major

research centres in the UK, USA, Spain, Belgium and China.

GSK is one of the few healthcare companies researching both medicines and vaccines for the World

Health Organizations three priority diseases HIV/AIDS, tuberculosis and malaria.

GSK produce medicines that treat major disease areas such as asthma, anti-virals, infections, mental

health, diabetes, cardiovascular and digestive conditions. In addition, they are a leader in the

important area of vaccines and are developing new treatments for cancer.

They also market other consumer products, many of which are among the market leaders:

over-the-counter (OTC) medicines including Gaviscon and Panadol

dental products such as Aquafresh and Sensodyne

smoking control products Nicorette/Niquitin

nutritional healthcare drinks such as Lucozade, Ribena and Horlicks

skincare products marketed by Stiefel Laboratories

GSKs History and global operations

GSKs history is an example of international business. It grows only through the international

operations.

1715

Plough Court pharmacy, the forerunner of Allen and Hanburys Ltd, is established in London by

Silvanus Bevan.

1830

John K Smith and his brother-in-law, John Gilbert, opened a drugstore in Philadelphia in

When John Gilbert decided to withdraw, Smith was joined by his younger brother George. The

company soon became a leader in drug wholesaling.


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1859

Beecham closed his shop in Wigan and moved to St Helens, another industrial town a few miles

away, where he opened the first Beecham factory.

It was here that Beecham devised mechanised production methods, a necessary move because hismarkets were now as far afield as Africa and Australia.

1873

In 1873, after the partnership was dissolved, Joseph Nathan and Company was established. Strong

trade links with London continued and an office there was opened in 1876.

1875

The company name was changed to Smith, Kline and Company in 1875. By the mid-1890s, it was the

largest wholesale drug house in the Philadelphia area. The company thrived and manufactured awide range of basic medicines.

1880

Wellcome was invited to London to form a partnership with a Philadelphia pharmacist friend, Silas

Burroughs, who was trading in the UK. The idea was to exploit this market with American-made

compounded medicines.

The partnership was formalised in 1880 and Burroughs Wellcome & Company was established.

Its prosperity owed much to Wellcome's marketing flair, involving bold advertising, using medical

and scientific conferences, and the creation in 1884 of the Tabloid trademark.

he business expanded and spread to many countries

1885

Thomas Beecham's son Joseph joined the business in the 1860s and gradually took over the running

of the business.

By 1885, sales of Beecham's Pills brand of laxative had grown so much that the original factory had

become too small.

A new factory, opened in St Helens, was described as "more of a palace than a factory"

and was the first in the area to have electricity.

Beecham was renowned for his high standards of quality and hygiene, ensuring staff were

appropriately dressed in white coats in the factory, and that the working environment was dust free.

Beecham also had an ambitious and enlightened marketing strategy. In one year, advertisements

were placed in over 7,000 newspapers around the world. Translated by a team of Beecham writers,

the ads were printed in the language of the publication.

1891


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The original company that John K Smith founded went through numerous mergers and acquisitions.

Probably the most important and far-reaching was the company's absorption in 1891 of French,

Richards and Company, another respected drug wholesaler.

1902

Early research and development by Burroughs Wellcome was centered on the Wellcome Medical

Research Laboratories and the Wellcome Physiological Research Laboratories, both founded in the

1890s.

Henry Wellcome's tenet of "Freedom of research - Liberty to publish" attracted many

In 1924, The Wellcome Foundation Ltd was registered in London as a private company to coordinate

Wellcome's expanding businesses and research activities.

The 1930s brought further success. Digoxin was isolated from the digitalis leaf to become thestandard treatment for congestive heart failure, a globin zinc insulin was developed, and the first

pure curare alkaloid was produced.

Sir Henry Wellcome died in 1936 at the age of 82, leaving, through his will, the creation of the

Wellcome Trust, a charitable foundation to support medical research worldwide.

1904

Nathan starts dried milk powder production in New Zealand, exporting to London. Henry Wellcome

hires Henry Dale, who is to discover and study, among other things, histamine and how nerve

impulses are transmitted.

1906

The Nathan directors realised that selling dried milk as an infant food called for a more appealing

name than Defiance, the name used for the New Zealand product. They settled on Lacto, but this

was not acceptable because similar names were already registered. By adding and changing letters,

the name Glaxo evolved and was registered in October 1906.

1908

The "Glaxo Baby Book" was a unique publication first produced in 1908 that aimed toanswer questions from mothers about infant feeding and care.

The booklet, which continued until the 1970s, provided practical advice from nursing staff and

reflected the advances in medical and nutritional science. "Glaxo - the Food that Builds Bonnie

Babies" became a familiar slogan in Nathan's advertising efforts of the time.

1910

The year 1910 was another period of growth for Smith, Kline and French.


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The "Blue Line," which covered a wide assortment of standard drugs sold under the

Smith, Kline and French name, was added to the company's inventory. These included poison ivy

lotion, iron tablets and lozenges.

1913

Production of Beecham's Pills laxative reaches one million a day.

1919

Alex C Maclean establishes Macleans Ltd, manufacturing own-name products for chemists. Mahlon

Kline begins the novel practice of sending pharmaceutical samples through the mail to doctors

across the US.

In 1919, Harry Jephcott, who had chemical and pharmaceutical qualifications, joined the company

and led a team that would take the organisation into new realms.

In 1923, Jephcott obtained rights to a process of extracting vitamin D from fish-liver oil. The

company's first pharmaceutical product, Ostelin Liquid, resulted in 1924. Also in 1923, Allen and

Hanburys and Burroughs Wellcome Co were granted licences to produce insulin for the treatment of

diabetes.

Through the 1920s and 1930s, the Joseph Nathan company made considerable progress and opened

many subsidiaries and agencies.

Alec Nathan became chairman in 1927 and new and larger facilities were started in 1935 at

Greenford, on the western outskirts of London.

The Glaxo department became a subsidiary of Joseph Nathan and Co, called Glaxo Laboratories Ltd,

and the product range was increased. During the Second World War, Glaxo was crucially involved in

the production of penicillin and by mid-1944 was responsible for 80% of the UK's penicillin doses.

1926

The Beecham estate was purchased by financier Philip Hill, who realised that the Beecham's Pills

laxative business could, through diversification, become the basis of a major company.

In 1926, Beecham's Powders analgesic and respiratory tract medication was introduced and a period

of expansion by acquisition started - a novel concept at the time but something that became an

important element of Beecham's policy.

From a market stall in 1847, the business had grown to a national operation, manufacturing one

million pills per day.

1929

Smith, Kline and French Company is renamed Smith Kline and French Laboratories and becomes

more focused on research.

1930


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Sydney Smith of Wellcome isolates the glycosides of Digitalis lanata, a variety of foxglove. Lanoxin

(digoxin) is used in the treatment of heart failure.

1935

Glaxo Laboratories is formed and new facilities are created at Greenford, near London.

1936

Sir Henry Wellcome's will leaves sole ownership of The Wellcome Foundation Ltd to a UK medical

research charity, today called the Wellcome Trust. Sir Henry Dale of Wellcome is awarded the Nobel

Prize for Medicine for his work in the chemical transmission of nerve impulses.

1938

Beecham made two important acquisitions in 1938. The first was Macleans. This was a milestone not

only because of the major products involved, including Macleans toothpaste and Lucozade energy-replacement drink, but also because of the people it brought into the Beecham organisation -

principally HG Lazell, the architect of the company's later success in prescription medicines. Within

15 years, Lucozade was producing about half of Beecham's total profit.

Beecham's second important purchase in 1938 was Eno's Proprietaries, which provided the company

with the antacid Eno's Fruit Salts as well as 14 subsidiaries in the Americas, South Africa, Australia,

New Zealand and western Europe. This worldwide marketing network was as significant an addition

as the product itself.

The acquisition of Macleans toothpaste and Lucozade energy drink signalled an expansion to the oral

care and drinks markets.

The Horlicks Malted Milk business grew markedly in the years after the beverage was patented. In

the early 1930s, "Malted Milk" was dropped from the product description and Horlicks

malted milk began promoting the benefits of sound sleep, resulting from the regular bedtime

consumption of the drink.

Also in 1938, a blackcurrant syrup made specifically for the preparation of milkshakes was found to

have exceptionally high vitamin C content. This product was developed for sale through hospitals

and named Ribena, from the Latin for blackcurrant Ribes negrum. Ribena was produced for free

distribution to children during the Second World War.

1943

HG Lazell had always believed in the importance of scientific research. By 1943 the Beecham Board

had adopted his philosophy, and Beecham Research Laboratories (BRL) was created to focus

exclusively on basic pharmaceutical research.

In 1945, BRL purchased Brockham Park in the south of England. In 1947 its new research laboratories

were opened. It was there that Beecham scientists made their most important discovery.

Penicillin, the world's first antibiotic, which was at first seen as a miracle drug, had by the 1950sgiven rise to a clinical problem. Its widespread use greatly increased the incidence of strains of


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bacteria that were resistant to penicillin, to such an extent that hospital wards had to be closed

because of their infection with these strains.

In 1959, Brockham Park became famous when Beecham scientists there discovered the penicillin

nucleus, 6-APA. Using this as a starting material, scientists were able to create an almost infinite

number of new semisynthetic penicillins, whose activity could be directed against probleminfections.

By the 1960s, BRL was producing a wide variety of antibiotics, including the world's first

semisynthetic penicillin. Over the following 20 years, Beecham was to produce a wide range of

antibiotics and would become a world leader in anti-infective treatments.

1945

Beecham Group Ltd is established, replacing Beecham Pills Ltd and Beecham Estates Ltd - later

known as Beecham Group plc - and incorporates Beecham Research Laboratories.

1947

For Glaxo, the end of the Nathan era came with the retirement in 1945 of Alec Nathan and, within a

few years, Glaxo Laboratories Ltd became a public company and Joseph Nathan and Co ceased to

exist.

R&D teams were strengthened and achieved early successes including the first vaccine to

combine protection against whooping cough and diphtheria, and Crystapen, a white crystalline form

of penicillin that was more stable.

The most significant advance, however, was the entry into cortisone production and the marketing

from 1955 of the first of a wide range of corticosteroid products for illnesses such as rheumatoid

arthritis and dermatological and allergic respiratory conditions. In addition, a new series of

antibiotics known as cephalosporins was to revolutionise therapy from the mid-1960s.

Following the acquisition of Allen and Hanburys in 1958 and the resulting additional R&D

facilities, Ventolin (salbutamol) was launched in 1969 and became the gold standard for treatment

for acute asthma attacks.

Other products of this era included Betnovate (betamethasone valerate) in 1963 and a range of

creams and ointments, as well as a range of improved antibiotics.

1948

Vitamin B12 is isolated by Glaxo scientists for the treatment of pernicious anaemia. Streptomycin for

TB treatment is produced by Glaxo scientists. Polymixin anti-bacterials are developed by Wellcome.

Smith Kline and French Laboratories acquire a new site at 1530 Spring Garden Street, Philadelphia.

1950

During the 1950s, Smith Kline and French launched Thorazine (chlorpromazine), which

revolutionised the treatment of mental illness.


20/30

It became the product of reference in the first generation of central nervous system drugs. However,

in the beginning, there were some difficulties.

One was the fact that American private practice psychiatrists did not at first accept the idea of

treating mentally ill patients by chemical means. But Smith Kline and French's hypothesis that the

drug actually corrected mental malfunctioning was vindicated in several clinical trials, which werereported later in American medical journals.

Soon afterwards, Thorazine began to be used increasingly in mental health programmes. It won the

status of a "fundamental drug in medicine," the standard against which all other

tranquillisers were measured.

1953

The "rational approach" to drug discovery by George Hitchings and Gertrude Elion in

Wellcome's US laboratories led to the discovery in 1951 of Purinethol (mercaptopurine), one of the

first effective anticancer treatments.

In a collaboration lasting over 30 years, the two scientists initiated many new cures and treatments.

Their research was based on studies of nucleic acids, the chemical building blocks of DNA.

1958

Glaxo acquires Allen and Hanburys Ltd.

1959

The Wellcome Foundation acquires Cooper, McDougall and Robertson Ltd, an animal healthcompany founded in 1843. Wellcome launches range of Actifed antihistamine products for head

colds and allergies.

1968

At Wellcome, George Hitchings and Gertrude Elion synthesised trimethoprim, which was

subsequently combined with a sulphamide to form a broad-spectrum systemic antibacterial agent

Septrin (co-trimoxazole). From 1968, this became one of the leading anti-bacterial treatments

worldwide.

1969

The "rational approach" to the development of the pharmaceutical business was

increasingly evident in the fields of R&D at Glaxo, where David Jack and his colleagues focused

on discovering chemical substances to manipulate natural mediators such as transmitters, hormones

and enzymes to cause selective effects in specific organs in patients.

Early success with this approach came with Ventolin (salbutamol), which was launched in 1969 and

became the gold standard treatment for acute asthma attacks.


21/30

This success led to a range of compounds for opening up restricted airways by the selective

stimulation of receptors in bronchial muscle, and of inhaled steroids to treat the underlying

inflammation in asthma and various allergic conditions such as hay fever.

1970

Burroughs Wellcome Inc moves its production facility from New York to Greenville, North Carolina.

1972

Beecham Research Laboratories discovered amoxycillin in 1972, launched as Amoxil (amoxicillin), a

broad-spectrum penicillin that rapidly became a widely prescribed antibiotic.

Amoxil has proven to be particularly useful in treating bacterial infections such as ear and throat

infections in young children. Amoxycillin became the world's most widely used antibiotic.

The Beecham Group made a takeover bid for Glaxo Group in 1972. As a defence measure, Glaxomoved to increase its size and announced a proposal to merge with UK chemists Boots. The

Monopolies Commission, however, ruled after five months of investigation and deliberation that

neither merger should proceed. Glaxo's parent company renamed itself Glaxo Holdings.

1976

Smith Kline and French scientists were responsible for the development of Tagamet (cimetidine), the

drug that revolutionised peptic ulcer therapy and ultimately became the first drug to achieve sales of

over $1 billion a year.

It was marketed in 1976 in the UK and in 1977 in the US - and subsequently throughout the world -for the treatment of duodenal ulcer and certain gastrointestinal disorders, and soon became one of

the world's most prescribed medicines.

The product was universally accepted and praised by gastroenterologists, internists, family

practitioners, surgeons and patients.

In 1988, Sir James Black was awarded the Nobel Prize in medicine for his research into beta-blockers

and the discovery of Tagamet.

1978

Through the acquisition of Meyer Laboratories Inc, Glaxo's business in the US is started, to become

Glaxo Inc from 1980. The broad-spectrum injectable antibiotic Zinacef (cefuroxime) is introduced by

Glaxo.

1981

Augmentin (amoxicillin / clavulanate potassium), a broad-spectrum penicillin for a wide range of

bacterial infections in children and adults, was launched by Beecham.


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Resistance to antibiotics is a major problem and Augmentin meets a growing clinical need to

overcome the major cause of resistance. Augmentin is considered the gold standard in treating

serious - mostly respiratory - infections.

The company's antiviral experience was also valuable in its work against AIDS and the launch in 1987

of Retrovir (zidovudine), also known as AZT, for the treatment of AIDS and HIV.

1982

SmithKline acquires Allergan, an eye and skincare business, and merges with Beckman Instruments

Inc, a company specialising in diagnostics and measurement instruments and supplies. The company

is renamed SmithKline Beckman. John Vane of the Wellcome Research Laboratories is awarded the

Nobel Prize, with two other scientists, "for their discoveries concerning prostaglandins and

related biologically active substances."

1983

Glaxo Inc moves to new facilities in Research Triangle Park and Zebulon, North Carolina. The broad-

spectrum injectable antibiotic Fortum (ceftazidime) is launched. Wellcome launches Flolan

(epoprostenol) for use in renal dialysis.

1986

The acquisition of the US firm of Norcliff Thayer added Tums (antacid tablets) and Oxy (acne

treatments) to Beecham's over-the-counter portfolio.

The purchase reinforced the group's strong position in the US over-the-counter market. Beecham

also divested businesses in the mid-1980s and decided to concentrate on two key areas of consumer

products, and prescription and over-the-counter medicines.

Consumer products represented 42% of total sales in 1988. Prescription and over-the-counter

medicines represented 58% of sales in that year.

1987

The AIDS treatment Retrovir (zidovudine) is launched by Wellcome. Glaxo introduces the oral

antibiotic Zinnat (cefuroxime axetil).

1988

SmithKline BioScience Laboratories acquires one of its largest competitors, International Clinical

Laboratories, Inc, increasing the company's size by half and establishing SmithKline BioScience

Laboratories as the industry leader. The Nobel Prize for medicine is awarded to George Hitchings

and Gertrude Elion, of Burroughs Wellcome Inc, and to Sir James Black, who had worked at the

Wellcome Foundation and Smith Kline and French Laboratories, "for their discoveries of

important principles for drug treatment."

1989


23/30

The merger in 1989 of SmithKline Beckman and the Beecham Group to form SmithKline Beecham

created a new company with one of the world's biggest research and development organisations.

The combined product portfolio, pipeline and geographic networks positioned SmithKline Beecham

at the forefront of the global healthcare industry.

The new company reasserted its goal to become an integrated human healthcare company, covering

prevention, diagnosis, treatment, cure and disease management, and creating customer healthcare

solutions.

1992

Mepron (atovaquone) for AIDS-related pneumonia is introduced by Burroughs Wellcome in the US.

SmithKline Beecham's Havrix hepatitis A vaccine, inactivated, the world's first hepatitis A vaccine, is

launched in six European markets.

1993

In 1993, SmithKline Beecham negotiated a multi-million-dollar research collaboration agreement

with Human Genome Sciences Inc (HGS), an enterprise developed for the purpose of identifying and

describing the functions of the genes in the human body.

The agreement gave SmithKline Beecham certain rights to develop both drug products and

diagnostic tests based on the gene sequencing information that HGS discovered.

As an extension of that agreement, SmithKline Beecham established the Genetic Testing Center in

California and broadened its testing service to include a growing number of molecular diagnostic

tests for genetic diseases such as cystic fibrosis, Fragile X Syndrome and Tay-Sachs Disease.

1994

Sterling Health was acquired in 1994, making SmithKline Beecham the third largest over-the-counter

medicines company in the world and number one in Europe and the international markets.

1995

Glaxo and Wellcome merge to form Glaxo Wellcome. Glaxo Wellcome acquires California-based

Affymax, a leader in the field of combinatorial chemistry. The Queen opens Glaxo Wellcome's

Medicines Research Centre at Stevenage in England. Valtrex (valaciclovir) is launched by Glaxo

Wellcome as an anti-herpes successor to Zovirax (acyclovir). SmithKline Beecham acquires Sterling

Winthrop's site in Upper Providence, Pennsylvania, to fulfil US R&D expansion needs.

1998

SmithKline Beecham and the World Health Organization announce a collaboration to eliminate

lymphatic filariasis (elephantiasis) by the year 2020. The largest pharmaceutical company in Poland

is created with the acquisition of Polfa Poznan by Glaxo Wellcome.

1999


24/30

The 30th anniversary of the launch of Ventolin (albuterol) is marked as respiratory becomes Glaxo

Wellcome's largest therapeutic area. Sharpening its focus on pharmaceuticals and consumer

healthcare, SmithKline Beecham divests SmithKline Beecham Clinical Laboratories and Diversified

Pharmaceutical Services. SmithKline Beecham's Avandia (rosiglitazone maleate), for the treatment of

type 2 diabetes, is launched in the US.

2000

GlaxoSmithKline is formed through the merger of Glaxo Wellcome and SmithKline Beecham.

Avandia passes one million retail prescriptions in the US.

GSK makes a ground-breaking pledge to provide three HIV/AIDS medicines to developing country

governments at significant price reductions.

2001

GSK moves to its new UK headquarters in Brentford, West London. GSK House consists of four, five-

storey buildings and a 16-storey tower block linked by an internal fully-glazed 'street'. The building

was designed with input from employees.

Twinrix, the first combination vaccine to prevent hepatitis A and B is approved by the FDA.

2002

Avandia reaches 20 million prescriptions milestone in the US.

GSK donated the first 100 million albendazole tablets as part of its commitment to fight lymphaticfilariasis.

GSK marks the 15th anniversary of AZT, the first medicine used to treat HIV/AIDS.

GSKs Positive Action programme celebrates its tenth anniversary.

By the end of 2002, GSK had secured 120 arrangements to supply preferentially-priced HIV/AIDS

medicines to 50 of the worlds poorest countries.

2005

GSK launches Rotarix, a vaccine against rotavirus, a major cause of vomiting and diarrhoea in infants.

The launch programme of the product focuses on markets where the need is highest.

2006

GSK produces over 10 million packs of its anti-flu treatment Relenza in one year.

Rotarix, the first vaccine against rotavirus is made available in Europe.


25/30

2007

In a busy year for acquisitions, GSK acquires Domantis, a leader in developing antibody therapies,

Praesis Pharmaceuticals, a biopharmaceuticals company and Reliant Pharmaceuticals, a producer of

cardiovascular medicines.

GSK gains US approval for Tykerb, a new treatment for advanced breast cancer.

2009

Weight loss medicine alli launches in Europe.

Synflorix, GlaxoSmithKlines pneumococcal vaccine, receives European authorisation.

GSKs commitment to emerging markets is strengthened through agreements with Aspen, Dr.

Reddys and UCB.

GSK signs agreement with the World Health Organization to donate 50 million doses of pandemic

H1N1 vaccine for distribution to developing countries.

GlaxoSmithKline announced as Tier 3 Sponsor as London 2012 anti-doping plans confirmed.

As part of its commitment to greater transparency, GSK publishes speaking and consulting fees paid

to US physicians.

2011

GSK announces move to new environmentally-friendly building in Philadelphia USA.

Rapid introduction of Synflorix in Kenya at around 90% discount enables vaccination of millions of

children against pneumococcal disease.

Launch of Sensodyne Repair & Protect, the worlds first everyday fluoride toothpaste with NovaMin

technology that can repair sensitive teeth.


26/30

GSK to reimburse 100% of uncapped tuition fees for all undergraduates it recruits in the UK.

GSK and Human Genome Sciences receive approval for Benlysta (belimumab), the first new lupus

treatment in 50 years.

Products:

prescription medicines

vaccines

consumer healthcare

GSK's current products include:

Advair

Albenza

Alli (orlistat)

Amerge

Amoxil (amoxicillin)

Arixtra

Arranon

Augmentin

(amoxicillin/clavulanic

acid)

Avamys

Avandia

Avodart

BC Powder - pain relief

Beano Beconase

Boniva

Boost

Ceftin

Coreg

Coreg CR

Dexedrine

Eno - effervescent salts

Flixonase

Geritol - dietary

supplements

Goody's Powder - pain

relief

Horlicks - malted milk

drink

Imitrex

Keppra

Lamictal

Lanoxin

Levitra (co-marketed

with Bayer

Pharmaceuticals)

Lovaza

Lucozade - energy and

sports drinks

Maxinutrition

Nicoderm

Nicorette

NiQuitin

Pandemrix - influenza

pandemic vaccine

Panadol (paracetamol) -

pain relief

Panadol night - pain

relief

Parnate

Paxil

Promacta

Ralgex - pain relief

Relenza

Requip

Ribena - fruit based

drinks

Serlipet
http://en.wikipedia.org/wiki/Fluticasone/salmeterolhttp://en.wikipedia.org/wiki/Albendazolehttp://en.wikipedia.org/wiki/Orlistathttp://en.wikipedia.org/wiki/Naratriptanhttp://en.wikipedia.org/wiki/Amoxicillinhttp://en.wikipedia.org/wiki/Fondaparinuxhttp://en.wikipedia.org/wiki/Nelarabinehttp://en.wikipedia.org/wiki/Amoxicillin/clavulanic_acidhttp://en.wikipedia.org/wiki/Amoxicillin/clavulanic_acidhttp://en.wikipedia.org/wiki/Fluticasone_furoatehttp://en.wikipedia.org/wiki/Rosiglitazonehttp://en.wikipedia.org/wiki/Dutasteridehttp://en.wikipedia.org/wiki/BC_Powderhttp://en.wikipedia.org/wiki/Beano_(dietary_supplement)http://en.wikipedia.org/wiki/Beconasehttp://en.wikipedia.org/wiki/Ibandronic_acidhttp://en.wikipedia.org/wiki/Boost_(health_food)http://en.wikipedia.org/wiki/Cefuroximehttp://en.wikipedia.org/wiki/Carvedilolhttp://en.wikipedia.org/wiki/Dexedrinehttp://en.wikipedia.org/wiki/Eno_(drug)http://en.wikipedia.org/wiki/Fluticasonehttp://en.wikipedia.org/wiki/Geritolhttp://en.wikipedia.org/wiki/Goody%27s_Powderhttp://en.wikipedia.org/wiki/Horlickshttp://en.wikipedia.org/wiki/Sumatriptanhttp://en.wikipedia.org/wiki/Levetiracetamhttp://en.wikipedia.org/wiki/Lamotriginehttp://en.wikipedia.org/wiki/Digoxinhttp://en.wikipedia.org/wiki/Vardenafilhttp://en.wikipedia.org/wiki/Bayerhttp://en.wikipedia.org/wiki/Bayerhttp://en.wikipedia.org/wiki/Lovazahttp://en.wikipedia.org/wiki/Lucozadehttp://en.wikipedia.org/w/index.php?title=Maxinutrition&action=edit&redlink=1http://en.wikipedia.org/wiki/Nicodermhttp://en.wikipedia.org/wiki/Nicorettehttp://en.wikipedia.org/wiki/Niquitinhttp://en.wikipedia.org/wiki/Pandemrixhttp://en.wikipedia.org/wiki/Panadolhttp://en.wikipedia.org/wiki/Paracetamolhttp://en.wikipedia.org/wiki/Panadol_nighthttp://en.wikipedia.org/wiki/Tranylcyprominehttp://en.wikipedia.org/wiki/Paroxetinehttp://en.wikipedia.org/wiki/Eltrombopaghttp://en.wikipedia.org/wiki/Ralgexhttp://en.wikipedia.org/wiki/Zanamivirhttp://en.wikipedia.org/wiki/Ropinirolehttp://en.wikipedia.org/wiki/Ribenahttp://en.wikipedia.org/wiki/Piboserodhttp://en.wikipedia.org/wiki/Piboserodhttp://en.wikipedia.org/wiki/Ribenahttp://en.wikipedia.org/wiki/Ropinirolehttp://en.wikipedia.org/wiki/Zanamivirhttp://en.wikipedia.org/wiki/Ralgexhttp://en.wikipedia.org/wiki/Eltrombopaghttp://en.wikipedia.org/wiki/Paroxetinehttp://en.wikipedia.org/wiki/Tranylcyprominehttp://en.wikipedia.org/wiki/Panadol_nighthttp://en.wikipedia.org/wiki/Paracetamolhttp://en.wikipedia.org/wiki/Panadolhttp://en.wikipedia.org/wiki/Pandemrixhttp://en.wikipedia.org/wiki/Niquitinhttp://en.wikipedia.org/wiki/Nicorettehttp://en.wikipedia.org/wiki/Nicodermhttp://en.wikipedia.org/w/index.php?title=Maxinutrition&action=edit&redlink=1http://en.wikipedia.org/wiki/Lucozadehttp://en.wikipedia.org/wiki/Lovazahttp://en.wikipedia.org/wiki/Bayerhttp://en.wikipedia.org/wiki/Bayerhttp://en.wikipedia.org/wiki/Vardenafilhttp://en.wikipedia.org/wiki/Digoxinhttp://en.wikipedia.org/wiki/Lamotriginehttp://en.wikipedia.org/wiki/Levetiracetamhttp://en.wikipedia.org/wiki/Sumatriptanhttp://en.wikipedia.org/wiki/Horlickshttp://en.wikipedia.org/wiki/Goody%27s_Powderhttp://en.wikipedia.org/wiki/Geritolhttp://en.wikipedia.org/wiki/Fluticasonehttp://en.wikipedia.org/wiki/Eno_(drug)http://en.wikipedia.org/wiki/Dexedrinehttp://en.wikipedia.org/wiki/Carvedilolhttp://en.wikipedia.org/wiki/Cefuroximehttp://en.wikipedia.org/wiki/Boost_(health_food)http://en.wikipedia.org/wiki/Ibandronic_acidhttp://en.wikipedia.org/wiki/Beconasehttp://en.wikipedia.org/wiki/Beano_(dietary_supplement)http://en.wikipedia.org/wiki/BC_Powderhttp://en.wikipedia.org/wiki/Dutasteridehttp://en.wikipedia.org/wiki/Rosiglitazonehttp://en.wikipedia.org/wiki/Fluticasone_furoatehttp://en.wikipedia.org/wiki/Amoxicillin/clavulanic_acidhttp://en.wikipedia.org/wiki/Amoxicillin/clavulanic_acidhttp://en.wikipedia.org/wiki/Nelarabinehttp://en.wikipedia.org/wiki/Fondaparinuxhttp://en.wikipedia.org/wiki/Amoxicillinhttp://en.wikipedia.org/wiki/Naratriptanhttp://en.wikipedia.org/wiki/Orlistathttp://en.wikipedia.org/wiki/Albendazolehttp://en.wikipedia.org/wiki/Fluticasone/salmeterol


27/30

Personal care Oral healthcare products include the Aquafresh,

Macleans, Biotene and Sensodyne toothpaste and related product ranges.

Current operations

It has its global foot print across all the countries. It is largely focussing mergers acquisitions

associations etc. Their products are now almost saturated in all developed countries. Their main area

of interst lies in emerging countries where they expect maximum growth. Currently they have

operations in more than 100 countries across the globe.

Last two years financials
http://en.wikipedia.org/wiki/Aquafreshhttp://en.wikipedia.org/wiki/Biotenehttp://en.wikipedia.org/wiki/Sensodynehttp://en.wikipedia.org/wiki/Sensodynehttp://en.wikipedia.org/wiki/Biotenehttp://en.wikipedia.org/wiki/Aquafresh


28/30

Source : annul report GSK

From this we can see that the growth is now concentrated upon Asia pacific and emrging markets.

Recently launched products, initiatives

17 September 2012

Regulatory Update: GSK announces submission for a new indication for Synflorix in Europe

24 August 2012

GSK and Theravance announce completion of the Phase III programme for once-daily LAMA/LABA

(UMEC/VI) in COPD

23 August 2012

GSK announces start of Phase III programme of sirukumab in rheumatoid arthritis

15 August 2012

GlaxoSmithKline reaches agreement to divest majority of Classic Brands in Australia for 172m

Recent coverage in news

September 2012

GSK to acquire five million shares in Response Genetics for US$1.10 per share in cash

GSK launches inhaler recycling program


29/30

July 2012

GlaxoSmithKline agrees to $3 billion settlement with Justice Department in largest sum of its

kind over health care fraud

iii. Brief History of Indian IB Operations

The GSK Indian operations commenced at 1919 with some small trades. In 1924 HJ foster

&company became the sole agents. It became a subsidiary of Glaxo in 1924.

The company changes its name to Glaxo in the year 1950. In 1956 it stars its production from

Worli plant. In 1960 ,Aligarh plant start to production of milk products. In 1961 it starts its

thane plant for vaccine manufacturing.

In 1968 it became a limited company. It starts its R&D in 1971. And new plants are made in

Nasik, Mysore and Gujarat. During 1980 company went associations with various food

brands such as Vegepro Foods and Feeds Limited , K G Gluco Biols and Hindustan Foods

Limited . They later sells these brands.During 1990s they got various recognitions and build

its reputation in the Indian market. It also made its position during these years.

In 2001 it chaged its name to GSK.

In 2000s it launches various pharmacy products in Indian market ant became one of the

reputed brands in india

2. Chronological history of markets entered, and with which products

The mode of operation is at first big city based and spreds across the length of India.

The GSK India product portfolio includes prescription medicines and vaccines. Prescription medicines

range across therapeutic areas such as anti-infectives, dermatology, gynaecology, diabetes,

cardiovascular disease and respiratory diseases. It also offers a range of vaccines, for the prevention

of hepatitis A, hepatitis B, invasive disease caused by H, influenzae, chickenpox, diphtheria,

pertussis, tetanus and others.

In consumer health division they have two product line namely OTC medicines and nutrition

production. These include crosin, Eno, iodex. Moreover their nutrition products are Horlics, Boost,

Maltova and Viva.

3. Modes of entry chosen

The mode of entry chosen by them is at first as exports then sale to an agent. Later they acqure the

agent started to grow. This journey includes various acquisitions and joint venture. During the

tenure they changed their name times and return to the name GSK in 2001


30/30

4. Organizational structure for IB operations

The IB operations are based out of UK. Then they have respective country heads for the operations

in each country. The operations are directly done by them . The operation is mainly classified to two

departments. One is pharmaceutical which includes vaccines and medicines. The other is consumer

helth divisions> Both are working in separate way.

5. Current size of IB operations & percentage of overall turnover

In India, GSK is one of the market leaders with a turnover of Rs. 2699 crore and a share of 4.2

percent in the pharmaceutical divisions.

GSK leads in several therapeutic segments - dermatology, anti-helmentics, hormones

In consumer health they have the market of around 3000 cr.

c. Analysis of IB Strategies Followed by the Two Firms

GSK is an very old company which has roots around 300 years ago .they are very good example at

international business. They starts it global operations from the very beginning. They used different

approaches during the time. We can a lot of acquisition, joint venture, takeover, splitting name

changes during its operations. It is a complex system that grows through inorganic growth. This is a

more diversified firm with presence in various product cycles.

But Reddys established 30 years ago. The main IB operations they had followed by acquisitions. If

that is not possible they will go for joint venture. The Reddys is always try to retain the brandswithin and focuses by low cost leadership.

At present the both companies has a strategic relationship in some product line so that both

companies are benefitted in different markets .This will help strategic advantage to firms in IB

operations

Documents

Two Compnies DRreddy and GSK