Company Analysis - GlaxoSmithKline
Garnier's Strategic Kingdom: GSK's road to success
GlaxoSmithKline (GSK) is one of the top pharmaceutical companies in the world, second only to Pfizer in size, and employs over 100,000 people in 117 countries worldwide.
It is a powerhouse of global R&D with perhaps the most significant merger history of all big pharma. With mergers and acquisitions dating back to the 1800s, GlaxoWellcome and SmithKline Beecham had individually built up therapeutic expertise in some of the largest pharmaceutical markets. In December 2000, the merger of these long-established companies created GlaxoSmithKline, one of the strongest forces for therapeutic diversity in the industry.
With nearly 210 pharmaceuticals and vaccine projects covering 9 therapeutic areas, including respiratory, virological, central nervous system (CNS), oncology and gastro-intestinal/metabolic, GSK has one of the most promising pipelines in the pharmaceutical arena. However, its current success appears to be not only due to the 'blockbuster' merger, but also to the leadership and business acumen of its CEO, Dr Jean-Pierre Garnier (formerly CEO of SmithKline Beecham), and his strategy to prioritize R&D activities. Additionally, the strategic 'bolt-on' acquisitions, such as those of Corixa and Domantis, have further strengthened the business, adding specialist expertise to maximise future potential revenue.
It is important to note that GSK is not only a world leader in pharmaceuticals, but generates significant revenue from its Consumer Healthcare division - Lucozade and Nicorette, for example, are globally recognised brands.
