GlaxoSmithKline (GSK) has promised to cap drug costs for the world's 50 poorest countries at a quarter of their US and European prices. In addition, Andrew Witty, GSK's new chief executive, will reinvest 20% of the company's developing world profits into upgrading local health care infrastructure (eg improving clinics, drug distribution and training). GSK also renewed its commitment to research into neglected tropical diseases.
The price cap entails a sacrifice of five million pounds in annual sales, though shareholders will be reassured that this is a small proportion of GSK's total revenues of £22.7 billion (2007). The Lancet estimates that 'the money to be reinvested locally will be less than 0.1% of overall profits.' Despite Witty's generosity, Medecins Sans Frontieres (MSF) criticises the company for not sharing its HIV patents with other researchers.
'Other companies have taken some similar steps to stimulate research and strengthen health infrastructure - for example, Pfizer in Bangladesh', reports BMJ.
- BMJ 2009;338:b686
- Lancet 2009;373:693