Case study on GlaxoSmithKline(GSK)

By Ankita Mohapatra Sangram Das Kritika Basu Deepak kumar Sahoo

Summary of the case

GLAXOSMITHKLINE (GSK) is one of the worlds largest and most influential pharmaceutical company. Being an UK based company its 50% of sales is generated from US. Came into existence after the merger of two british companies Smithkleene Beecham and Glaxo Wellcome. Operates in three primary sectors pharmaceuticals,vassines and consumer health care.

Key problems of the company

Fierce competition from other competitors like Novartise,Pfizer and Schering-plough. o Fear of losing market share because of the generic drugs.
o

Findings
In market cap GSK stands at No 2 as compared to other comp. and Pfizer being the highest. The EBITDA of GSK is highest 11.53 bn. The EPS of the GSK is 2.7 The net income of GSK is highest 8.08 bn.

The GSK main strategy here is that they are more focusing on their R&D. They have grown to a large extent in only one field. i.e Respiratory areas. Due to increase competition from generic drugs company has suffered a huge decline in their sales. 20% of GSK turnover is from paxil,wellbutrin,advair,avandia,and augmentin.

Conclusion
They have to shift their focus to other products. They should use their market cap to get more funds. Invest in the R&D of there existing products.

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