The principles are: - Optimising prices so that they reflect the markets' ability to pay, with poorer countries paying less for medicines than better off countries. - Introducing differential pricing structures within markets to reach new sectors of the population. This will include doing business with public sector organisations in markets where the company previously only dealt with the private sector. - Working closely with health authorities and payers to agree innovative pricing programmes that help improve patient access to medicines. - Closely monitoring prices with local competition. - Ensuring that reductions in selling prices are passed on to patients where appropriate.

An example provided in the report demonstrates this strategy is yielding significant results in several MICs, where GSK has reduced prices for Cervarix, its vaccine to protect against cervical cancer. In the Philippines GSK reduced the price of Cervarix by 60%, which has resulted in a significant increase in monthly sales, settling at around six times the volume of vaccines sold before the price reduction was introduced. The company is continuing this price reduction strategy for Cervarix in other MICs and on March 5th reduced the price of the vaccine in Nigeria by 50%.

Charitable support increased to (pnds stlg)163m

GSK increased its level of charitable support from (pnds stlg)124m to (pnds stlg)163m, despite the global economic crisis. The (pnds stlg)163m comprises (pnds stlg)101m of product donations (valued at average cost of goods), (pnds stlg)43m of cash donation delivered through partners, (pnds stlg)17m of management costs and (pnds stlg)2m of in-kind donations.

The (pnds stlg)101m product donations include: - Over (pnds stlg)80m of free medicines provided to almost half a million patients in the US Patient Assistance Program. - (pnds stlg)8m of product donations provided through partners to under- served communities in 96 countries, including people affected by natural disasters in Asia-Pacific. - Donation of 425 million albendazole tablets ((pnds stlg)13m valued at average cost of goods) for the lymphatic filariasis (LF) elimination programme.

Following the outbreak of pandemic flu (H1N1) in 2009, GSK also made a commitment to donate 60 million doses of its H1N1 vaccine to the World Health Organization for use in developing countries.

The GSK African Malaria Partnership awarded four new grants in 2009, a total donation of (pnds stlg)1.5m over three years.

GSK also launched the PULSE Volunteer Partnership, an international programme that gives high-performing employees the opportunity to use their professional skills to support non-profit partners for three to six months. From the 2009 intake, GSK had 58 PULSE volunteers working in 18 different countries for 25 non-governmental organisations (NGOs).

Source: GLAXOSMITHKLINE