GSK Case Study & PR Plan

GlaxoSmithKline Public Relations Plan & Case Study

GlaxoSmithKline Healthcare Reform & Accessibility to Medicines:Public Relations Plan & Case Study

by Jill Leigh Bullock Leigh Publishing Publicist & WVU Graduate Student

To Learn More About Leigh Publishing Contact

[email protected]

��

www.leighpublishing.com

Integrated Marketing Communications 618: Public RelationsDr. Debra Davenport

October 26, 2009

Case Study & Public Relations Plan provided in conjunction with the Perley Isaac Reed School of Journalism

Integrated Marketing Communication Master’s Program atWest Virginia University

GlaxoSmithKline Public Relations Plan & Case Study Page 1














































Ourresponsibility

Do more, feel better, live longer

980 Great West Road, Brentford, Middlesex, TW8 9GS, UK

Tel: +44 (0)20 8047 5000

August 2009 Interim Update

Updates to information in our 2008 Corporate Responsibility report published in March 2009 have been inserted into the relevant sections of the report and are highlighted in blue boxes in a similar style to this text.

Appendix A: GSK Corporate Responsibility Report, 2008


Source: Retrieved October 24, 2009, from www.gsk.com/responsibility/downloads/GSK-CR-2008-full.pdf

Corporate Responsibility Report 2008

ContentsYou have downloaded the full Corporate Responsibility Report 2008.

Corporate responsibility at GSK 3Message from the CEO 4Our Corporate Responsibility Principles 6Business case for corporate responsibility 8Our key issues 10Corporate responsibility governance 11Stakeholder engagement 13About our reporting 21Benchmarking 23Assurance and internal audit 25Corporate responsibility data summary 27Resources and downloads 30

Contribution to global health 31The cost of disease 32The role of vaccines 33Treating ill health 35Disease awareness and prevention 39Investing in R&D 44�� 46�� 48Q&As 51

Access to medicines 53Our approach and contribution 55The role of others 57Developing countries 59 – Research and development 60 – Public-Private partnerships 71 – Product registrations 73 – Preferential pricing 75 – Pricing in middle-income countries 79Developed countries 86Pricing our medicines 88Intellectual property 89The future 93Response to assurance recommendations 96Case studies 98Q&As 101

Research practices 104Emerging technologies 105� – Cloning technology and stem cell research 106 – Genetic research 107 – Collaborative research on emerging technologies 108Animal research 109Human tissue research 115Medical governance 116Clinical research 117� – Planning and approval 118 – Informed consent 119 – Post-trial treatment 120 – Clinical trials in the developing world 121Public disclosure of clinical research 122Patient safety 125� – Patient safety governance framework 126 – Collecting and reporting safety data 127 – Performance 132��!�� "��# of research participants 133Working with healthcare professionals 134Training and auditing 135Case studies 138Q&As 140 Ethical conduct 142Code of Conduct and business ethics 143Marketing ethics 145� – Relationships with healthcare professionals 147 – Direct-to-consumer advertising 151Training and awareness 154� – Leading by example 156 – Performance and plans 157Monitoring and compliance 159Case studies 163Q&As 165


Appendix A: GSK Corporate Responsibility Report, 2008 (cont.)


Corporate Responsibility Report 2008 Contents

Supply chain 167Responsibility and our supply chain 168� – Human rights clause 170 – Choosing suppliers 171 – Monitoring and engagement 172 – Supplier diversity 176 – Fair treatment of suppliers 178Maintaining quality 179Security of supply 180Counterfeiting 181Case studies 184Q&As 185

Environmental sustainability 186Plan for excellence 187� – Targets 188 – The journey to sustainability 190Managing EHS and sustainability 192 – EHSS vision and policy 193 – Training and awareness 194 – Audits and compliance 196 – Reward and recognition 198 – Management of EHSS 199Environmental fundamentals 200 – Wastewater 201 – Hazardous and non-hazardous waste 204 – Contaminated land 210 – Emissions to air 211 – EHSS in business processes 216 – Supplier performance 217Sustainability 218 – Materials �� 219 – Climate change and energy 221 – Water use 230 – Product stewardship 233 – Packaging 240Open and transparent relations 241 – Stakeholder engagement 242 – EHSS reporting 243 – Assurance 244 – GSK response to assurance 247Q&As 249Environmental metrics 250

Our people 255Our culture and behaviours 257Restructuring 258Consultation 259Communication 260Diversity and inclusion 263Training and development 267Reward and recognition 269Health, safety and wellbeing 270 – Health and safety management 271 – Hazard assessment and communication 273 – Safety programmes 275 – Health and wellbeing programmes 278 – Health and business continuity 280 – Training and awareness 281 – Performance 282Case studies 288Q&As 290

Human rights 292Employees 293Suppliers 294Communities 295Society 296Activities in sensitive countries 297

Public policy and patient advocacy 298Our approach to external affairs 299Public policy activity in 2008 301 – Advocacy on healthcare and

disease prevention 302 – Advocacy on research practices 304 – Advocacy on patient safety 306 – Advocacy on intellectual property 307 – Advocacy on pricing and competitiveness 309 Political contributions and lobbying expenditures 310Patient advocacy 312 – Transparency 314 – Understanding patients 315 – Developing industry standards 316 – Advocacy in 2008 317Q&As 318




Corporate Responsibility Report 2008 Contents

Our work with communities 319Community investment 321Preventing disease 323 – Eliminating lymphatic �� 324 – Personal Hygiene And

Sanitation Education (PHASE) 325 – Local programmes 326Building community capacity 327 – Combating HIV/AIDS – Positive Action 328 – Combating malaria – Africa Malaria Partnership 329 – Local programmes 330 – Responding to disasters around the world 332Supporting science education 333Our plans 335




Corporate Responsibility Report 2008Corporate responsibility at GSKCorporate responsibility (CR) is central to our business.

We aim to operate in a way that reflects our values, to understand and respond to stakeholder views and to connect business decisions to ethical, social and environmental concerns. We seek to minimise the negative impacts and maximise the benefits of our business.

Read a message from our CEO on the importance of CR at GSK.

Every GSK employee is responsible for upholding our values and maintaining high ethical standards. Our Corporate Responsibility Principles define our approach to our key responsibility issues and provide guidance for employees on the standards to which the company is committed. We communicate with our people to underline our commitment to corporate responsibility and to update them on our progress.

We also engage with our external stakeholders � including healthcare professionals, investors, patients, non-governmental organisations, local communities and suppliers � to identify key issues and to gain feedback on our approach to corporate responsibility.

Our business makes a valuable contribution to society through the medicines and vaccines we produce which improve people �s lives. However, we know that the research and development, manufacture and saleof medicines and vaccines raise ethical issues. Consequently, the pharmaceutical industry is subject to a high level of public scrutiny and sometimes critical media coverage.

We aim for the highest ethical standards and we regularly report on our progress. This is essential for maintaining good relationships with our stakeholders, achieving the goals of our strategic priorities and ensuring the future sustainability of our business. It also supports our inclusion in key sustainability indices such as the FTSE4Good index and Dow Jones Sustainability Index. See how we scored in industry and investor benchmarks.

Our Corporate Responsibility Principles define our approach to our key responsibility issues and provide guidance for employees on the standards to which the company is committed.

Read about our management structures and processes for advancing progress on our CR Principles.

Home Responsibility Corporate responsibility at GSK

Back to top

Page 3 of 336




Corporate Responsibility Report 2008Message from the CEOA new mindsetWelcome to GSK�s Corporate Responsibility report which provides information on our activity and performance during 2008.

We want to be a company that is forward looking, innovative and willing to try new approaches and partnerships; a company that is constantly looking for new and sustainable ways to increase access to our medicines and vaccines, especially for those least able to pay.

We have made significant progress in helping to address global healthcare challenges. For example, over the past ten years we have donated over one billion tablets to the programme to eliminate lymphatic filariasis, a debilitating tropical disease and we are doubling manufacturing capacity to 600 million tablets a year. Our commitment to preferential pricing means we offer our AIDS and malaria medicines at not-for-profit prices in the world �s poorest countries. We also supply our vaccines to organisations such as GAVI and UNICEF at preferential prices, typically 10-20 per cent of the prices in developed countries.

But for every success story, there are examples of where we could do more. As I review our performance, I believe it is time for a new mindset in our industry and a new contract with society. In these difficult economic times it is a challenge to think beyond short-term performance. But we must look to the long-term and not be distracted by our own economic problems when the needs of the developing world remain just as pressing.

To begin with, there are four areas where we can show we are going to do things differently.

First, we are exploring a more flexible approach to intellectual property rights to incentivise much needed research into medicines for 16 neglected tropical diseases where there is a severe lack of research. One option is a Least Developed Country (LDC) �patent pool� in to which we would put our relevant small molecule compounds, process patents or other knowledge, and which would allow others access to develop and produce new products.

Secondly, on 1 April 2009 we will reduce our prices for patented medicines in the 50 poorest countries in the world, the LDCs, so they are no higher than 25 per cent of the developed world price. Where possible we will reduce our prices further while ensuring we cover our manufacturing costs so this offer is sustainable. We also recognise the challenge in middle-income countries where there is a wide disparity in incomes and ability to pay. Here our intention is to work on a case-by-case basis recognising that there is no �one size fits all � solution to improving access to medicines in these countries.

Thirdly, we will seek out partnerships and open the doors of our developing world research centre in Spain. We already know what partnership can achieve � for example, we successfully trialled a malaria vaccine candidate in partnership with the PATH�s Malaria Vaccine Initiative and the Bill and Melinda Gates Foundation. If we extend this approach the benefits will be huge.

Fourthly, working with partners such as NGOs, we will reinvest 20 per cent of the profit we make from selling medicines in LDCs to support the strengthening of healthcare infrastructure in these countries. Our sales in LDCs are relatively low so this profit is limited; initially this funding will amount to �1 to �2 million annually. But by our action we hope to send a signal to all multi-national companies operating in LDCs to join us and make a meaningful change in these countries. In all developing countries we must transform GSK into a local company addressing local healthcare needs. Our Brazilian business is leading the way � supplying vaccines and sharing technical expertise to help build local capacity.

We will not forget that significant healthcare challenges exist in developed countries too. We must work in partnership to create a virtuous circle, where industry gets rewarded for demonstrating genuine innovation,

Home Responsibility Corporate responsibility at GSK Message from the CEO

Page 4 of 336




healthcare payers get value-for-money because our medicines save them from high-cost healthcare interventions, and more patients get the medicines they need.

Of course, access to medicines is not the only issue that counts. We want GSK to be recognised around the world - by all stakeholders - as a company with the highest ethical standards.

We made good progress in 2008. We committed to stopping all corporate political contributions from 2009.Our decision to report more fully on our funding for medical education, patient groups and payments to physicians, will increase transparency and provide reassurance to stakeholders. Reflecting our commitment to animal welfare, we took a voluntary decision to end research in great apes, the highest-order of animals next to humans.

It is time for a new mindset in our industry and a new contract with society. With the support of other pharmaceutical companies and partners outside the industry, I believe significant improvements in human health can really be achieved.

Andrew Witty, CEO

Back to top

Page 5 of 336




Corporate Responsibility Report 2008Our Corporate Responsibility PrinciplesOur Corporate Responsibility Principles identify our key responsibility issues and provide guidance for employees on the standards to which GSK is committed:

Employment practices We will treat our employees with respect and dignity, encourage diversity and ensure fair treatment through all phases of employment. We will provide a safe and healthy working environment, support employees to perform to their full potential and take responsibility for the performance and reputation of the business. Read more about our employment practices.

Human rights We are committed to upholding the UN Universal Declaration of Human Rights, the OECD guidelines for Multi-National Enterprises and the core labour standards set out by the International Labour Organization. We expect the same standards of our suppliers, contractors and business partners working on GSK �s behalf. Read more about our approach to human rights.

Access to medicines We will continue to research and develop medicines to treat diseases of the developing world. We will find sustainable ways to improve access to medicines for disadvantaged people, and will seek partnerships to support this activity. Read about our approach in Access to medicines.

Leadership and advocacy We will establish our own challenging standards in corporate responsibility, appropriate to the complexities and specific needs of our business, building on external guidelines and experience. We will share best practice and seek to influence others, while remaining competitive in order to sustain our business.

Community investment We will make a positive contribution to the communities in which we operate, and will invest in health and education programmes and partnerships that aim to bring sustainable improvements to under-served people in the developed and developing world. Read about our work with communities.

Engagement with stakeholders We want to understand the concerns of those with an interest in corporate responsibility issues. We will engage with a range of stakeholders and will communicate openly about how we are addressing CR issues, in ways that aim to meet the needs of different groups while allowing us to pursue legitimate business goals. Read about our stakeholder engagement.

Standards of ethical conduct We expect employees to meet high ethical standards in all aspects of our business, by conducting our activities with honesty and integrity, adhering to our CR principles, and complying with applicable laws and regulations. Read about ethical conduct.

Research and innovation In undertaking our research and in innovating:

We may explore and apply new technologies and will constructively engage stakeholders on any concerns that may arise.

We will ensure that our products are subject to rigorous scientific evaluation and testing for safety, effectiveness and quality

We will comply with or exceed all regulations and legal standards applicable to the research and development of our products

Read more about our research practices.

Products and customers We will promote our products in line with high ethical, medical and scientific standards and will comply with all applicable laws and regulations. Read more about our marketing ethics.

Home Responsibility Corporate responsibility at GSK Our Corporate Responsibility Principles

Page 6 of 336




Caring for the environment We will operate in an environmentally responsible manner through systematic management of our environmental impacts, measurement of our performance and setting challenging performance targets. We will improve the efficiency of all our activities to minimise material and energy use and waste generated. We aim to find opportunities to use renewable materials and to recycle our waste. Read more about environmental sustainability.

Back to top

Page 7 of 336




Corporate Responsibility Report 2008Business case for corporate responsibilityDemonstrating that our practices are responsible and ethical benefits the business in the following ways:

An improved reputation and greater trust in GSK products

The ability to attract, retain and motivate talented people. This is becoming increasingly important as fewer young people in our major markets choose science-based careers

Constructive engagement with stakeholders. This helps us to prevent avoidable conflict and identify innovative approaches that benefit GSK and wider society

Greater access to markets and the ability to influence healthcare policy through improved relationships with regulators and healthcare payers. Helping governments to increase access to medicines and resolve healthcare challenges is particularly important

Greater ability to anticipate and prepare for legislative changes and maintain a competitive advantage

Helping to maintain support for the intellectual property system by finding innovative ways to increase access to medicines

Reduced costs and more efficient use of resources through increased environmental efficiency

Our business strategyOur business performance and development are driven by three strategic priorities which are supported by our corporate responsibility activities.

We believe that corporate responsibility should be managed as part of our overall business strategy and through our day-to-day business operations. For this reason we do not have a separate corporate responsibility strategy at GSK.

Corporate responsibility and our strategic priorities

We have established strategic priorities which we believe will increase growth, reduce risk and improve our long-term financial performance:

Grow a diversified global businessDeliver more products of valueSimplify the operating model

We believe these priorities will enable us to navigate the coming years more successfully and retain our leading-edge position as a company able to meet patients� and healthcare providers � needs into the future.

Running our business in a responsible way is fundamental to our success and inseparable from our strategic priorities.

We want to work in way that reflects our values, seeks to understand and respond to stakeholder views and connects our business decisions to ethical, social and environmental concerns. In this way we aim to minimise the negative impacts and maximise the positive benefits of our business.

Home Responsibility Corporate responsibility at GSKBusiness case for corporate responsibility

Page 8 of 336




Back to top

Page 9 of 336




Corporate Responsibility Report 2008Our key issuesOur CR reporting is focused on the most material (significant and relevant) issues for our business.

The following factors influence our materiality assessment:

Our business strategyOur risk management processes.Stakeholder interest, including investor feedback Changes in our business and operations, for example the types of product we produce or the locations in which we operate.Existing and proposed legislationPublic opinion and press coverage

We have identified the following responsibility issues as most material to GSK:

The contribution our core business makes to health through research, development, manufacture and the sale of medicines and vaccinesIncreasing access to medicines in under-served communities Ethical standards in research and development, and sales and marketing Our environmental impact, particularly climate change

Home Responsibility Corporate responsibility at GSK Our key issues

Back to top

Page 10 of 336




Corporate Responsibility Report 2008Corporate responsibility governanceOur Corporate Responsibility Committee (CRC) of Non-Executive Directors provides high-levelguidance on our approach to CR.

The CEO and members of the Corporate Executive Team (CET) are accountable for responsible management of the business and participate in CRC meetings.

During 2008 the Committee members were Sir Christopher Gent (Chair), Dr Stephanie Burns, Dr Daniel Podolsky, Sir Ian Prosser and Tom de Swaan.

The Committee meets three times a year to review our policies and progress on our CR Principles. The Committee reviews our performance against five of our CR Principles annually. These are access to medicines, standards of ethical conduct, research and innovation, employment practices and community investment. Other Principles are discussed at least once every two years. The Committee reports its findings to the Board.

Management of corporate responsibility

During 2008 the CRC reviewed GSK �s activity in a number of areas, including access to medicines, community partnerships, humanitarian donations, employee volunteering, sales and marketing practices, disclosure of funding of medical education and patient advocacy groups, product safety and communication of clinical trial results, R&D on diseases of the developing world, use of animals in research, outsourcing of research, research in emerging markets, reduction of employee numbers through restructuring, employee consultation requirements and employment litigation in the US.

The Committee also reviews and signs off the annual performance information published on this website and our annual CR highlights document.

To augment GSK's engagement with stakeholder opinion, in March 2009 Sophia Tickell was appointed as an external advisor to the Corporate Responsibility Committee. Sophia is an Executive Director and member of the Leadership team at SustainAbility, a think tank and consultancy that seeks to enhance business engagement with social and environmental concerns. Sophia has extensive experience of constructively challenging companies to increase their understanding of societal expectations and to develop strategies to meet them. She has gained this experience in her work as a journalist in Latin America, through her work in

Home Responsibility Corporate responsibility at GSK Corporate responsibility governance

Page 11 of 336




international development and her advocacy work at Oxfam and, most recently, through her direction of the investor-led Pharma Futures dialogues which aim to better align societal and shareholder value. Sophia will attend the meetings of the Corporate Responsibility Committee and advise the company in this capacity.

Read more about the Corporate Responsibility Committee.

Corporate responsibility risks

Our Risk Oversight and Compliance Council (ROCC) coordinates the management of significant business risks. The ROCC also considers reputational and corporate responsibility risks. Read more about riskmanagement and compliance at GSK.

Management structure

CR covers a very diverse range of issues at GSK so we believe it should be managed within our business functions, where the relevant subject experts work. We have a cross-functional team made up of representatives from key business areas which oversees development, implementation and communication of policies, including any responsibility elements, across GSK. The members are senior managers with direct access to our Corporate Executive Team.

We have a small central CR team to coordinate policy development and reporting specifically with respect to CR, and to communicate with socially responsible investors and other stakeholders.

Measuring performance

We have established metrics and key performance indicators to track our performance on responsibility issues.

Back to top

Page 12 of 336




Corporate Responsibility Report 2008Stakeholder engagementStakeholder engagement and dialogue enables us to connect with the views and opinions of the societies in which we operate.

It helps us identify important issues and shape our responses in the interest of our shareholders and wider society.

Regular engagement means we are better informed of emerging and current issues and changing societal expectations. It provides an opportunity for us to voice our approach to responsibility issues, obtain important feedback and build trust.

Most of this discussion takes place in the normal course of business. For example, our scientists regularly meet academics, researchers and other pharmaceutical companies through advisory boards and medical conferences.

Here we describe how we engage with our stakeholders, give examples of our engagement in 2008 by stakeholder group and provide information on how we are responding to the feedback we receive. You will find further examples of our engagement with stakeholders throughout this website.

Home Responsibility Corporate responsibility at GSK Stakeholder engagement

Back to top�

Page 13 of 336




Corporate Responsibility Report 2008How we engageHealthcare professionalsWe engage with healthcare professionals in many ways, including through our sales representatives and when running clinical trials. Read about our research and ethics policies governing relationships with healthcare professionals.

PatientsGSK researchers and scientists meet patients as part of our �Focus on the Patient� initiative. This engagement influences our understanding of diseases and our research priorities, read more in our casestudy.We also support the work of patient advocacy groups and we conduct market research via third parties to understand patient needs.

Governments and regulatorsWe engage in debate on legislation and seek to influence policy decisions that affect GSK. We also engagewith governments on responsibility-related issues.

Healthcare providersWe engage with healthcare providers through our government affairs, marketing and access to medicines activities.

InvestorsWe meet regularly with investors and socially responsible investors. Read more about our investorengagement activities.

EmployeesWe seek feedback from our employees through regular surveys. We also consult employees on changes that affect them and discuss business developments through regional and national consultation forums.

Local communitiesOur interactions with local communities are managed by individual GSK sites. Read more about our financialand practical support for communities .

Multilateral agenciesWe engage with multilateral agencies through our access and public health initiatives.

Non-governmental organisations (NGOs)We engage with international and local NGOs through our access , education and public health programmes and as part of our public policy work.

We also engage regularly with animal welfare organisations. Read more about animal research at GSK .

Scientific community and academic partnershipsIt is important for GSK to be part of scientific debates and we are involved in a number of academiccollaborations.

SuppliersWe hold global and regional supplier review meetings where senior GSK managers address and interact with suppliers on key issues. Read more about our engagement with suppliers.

Peer companiesWe engage with peer companies through membership of pharmaceutical industry organisations, for example

Home Responsibility Corporate responsibility at GSK Stakeholder engagementHow we engage

Page 14 of 336




g g p p g p p y g pEFPIA, PhRMA, and IFPMA, and through collaboration on specific projects.

Back to top�

Page 15 of 336




Corporate Responsibility Report 2008Engagement with employeesIt is important that our employees know about our commitment to corporate responsibility, understand their responsibilities and keep up-to-date with our progress.

Read about our approach to embedding an ethical culture at GSK.

We keep employees informed about corporate responsibility through our myGSK intranet site and Spirit, our internal quarterly magazine, which feature articles on responsibility issues. Read about how we engage with employees on environment, health and safety issues.

In 2008 at least nine articles on responsibility issues were published in Spirit. These included articles on environmental sustainability, community investments and our efforts to combat diseases of the developing world such as lymphatic filariasis. This year we published four editions of Spirit, distributing 33,500 copies of each edition internally. Additionally, during the year, an online version of the magazine was introduced on the intranet, offering access to more employees.

We distributed our 2007 Corporate Responsibility Review with Spirit magazine and directly to the Corporate Executive Team and GSK Board, senior managers, site directors and all communications staff. News articles and icons on our intranet site were used to guide users directly to the Review. This year we have published a shorter CR Highlights document to direct people to this website. We are raising awareness of this online CR Report by publicising it on our website and the company intranet.

Home Responsibility Corporate responsibility at GSK Stakeholder engagementEngagement with employees

Back to top�

Page 16 of 336




Corporate Responsibility Report 2008Engagement with investorsWe held 20 meetings with investors in 2008 to discuss responsibility issues. These comprised one-to-onemeetings and teleconferences, and a socially responsible investment (SRI) roadshow.

Investor questions

Some of the questions raised by investors about responsibility issues in 2008 concerned:

Access to medicines

Clinical trial results disclosure

Clinical trials in the developing world

Patient safety

Our operations in sensitive countries. Read more about GSK �s position on human rights

Sales and marketing practices. Read more about marketing ethics at GSK

Stem cell research

Animal research including genetic engineering of animals

Environmental issues including climate change and water pollution

Political contributions

We also disclose information on our greenhouse gas emissions through the Carbon Disclosure Project (CDP), an investor collaboration.

Home Responsibility Corporate responsibility at GSK Stakeholder engagementEngagement with investors

Back to top�

Page 17 of 336




Corporate Responsibility Report 2008Engagement with opinion leadersIpsos MORI surveyGSK participated in the Ipsos MORI survey which rates companies according to CR experts� and NGOs�perception of their CR performance. In 2008 nearly three-quarters of the 41 people surveyed thought that GSK took its responsibilities seriously, maintaining the significant improvement made in 2007 compared with 2006. GSK was the seventh-highest rated company on this question (out of 26 companies). Three of 41 respondents spontaneously mentioned GSK as a leader in corporate responsibility; there were no spontaneous mentions of GSK last year.

Back to top

�

Home Responsibility Corporate responsibility at GSK Stakeholder engagementEngagement with opinion leaders

Page 18 of 336




Corporate Responsibility Report 2008Engagement on access to medicinesEngagement on issues relating to access to medicines during 2008 is described in the Access to medicines section.

As well as the engagement during 2008, GSK conducted three formal stakeholder discussions during 2007 to get feedback on our approach to different issues relating to access to medicines . We engaged with influential individuals and organisations with expertise in this area, including NGOs, government representatives, journalists, academics, investors and industry organisations.

The topics covered were:

Increasing access to HIV/AIDS medicines in developing countriesExpanding R&D into diseases of the developing worldIncreasing access to medicines in middle-income countries

While we do not necessarily agree with all the comments made by participants, these sessions provided valuable feedback on our approach.

Feedback on GSK�s approach in developing countriesParticipants felt that GSK has a moral responsibility to make its products accessible to poor people and that access to medicines is also important to GSK �s long-term business sustainability.

It was felt that GSK �s approach to increasing access in developing countries (R&D, preferential pricing and voluntary licensing) is appropriate, although participants would like GSK to invest more in R&D into diseases of the developing world and do more to remove obstacles to the supply of generic medicines in these countries.

Participants urged GSK to collaborate more with other pharmaceutical companies to address access issues in developing countries. It was felt that an industry-wide approach could help to address issues more quickly and effectively.

Feedback on GSK�s approach in middle-income countries,Participants emphasised the importance of increasing access to medicines in middle-income countries (MICs) where there are still large numbers of very poor people. They encouraged GSK not to treat MICs as we would high-income countries.

Participants felt that GSK does not have a clear strategy on access in MICs. They would like GSK to be clearer on its approach and objectives; in particular they would like to know if we regard MICs as significant commercial markets.

It was pointed out that chronic diseases are a growing problem in MICs. It was suggested that GSK take a broad approach to access that encompasses all its medicines, not just those for high-profile diseases such as HIV/AIDS, malaria and TB.

Read about the findings from these session in more detail.

Home Responsibility Corperate Responsibility at GSK Stakeholder engagementEngagement on access to medicines

Back to top�

Page 19 of 336




Corporate Responsibility Report 2008Engagement on EHSSWe have an Environment, Health and Safety and Sustainability Stakeholder Panel in the UK which has provided independent feedback on our performance since 2005.

The panel of 13 members represents customers, suppliers, regulators, public interest groups and investors. Two senior EHSS representatives from GSK regularly participate and other GSK managers attend discussions on specific topics. The panel is facilitated by The Environment Council, an independent charity.

The panel met in April and October 2008 to debate a range of issues including:

The broad issue of sustainabilityGSK �s position on nanotechnologyProgress with climate change, process safety and green chemistry programmesGSK �s plans for complying with the EU�s Registration, Evaluation and Authorisation of Chemicals (REACH)legislation, mass efficiency improvement and pharmaceuticals in the environment

We have been using the feedback from the stakeholder panel to inform our Environment, Health and Safety and Sustainability programme. The panel is also providing input to the new GSK Sustainability Council composed of senior managers from across GSK.

Panel members provided feedback about the direction the panel should take and the effectiveness of the dialogue. They proposed that the panel should have a broader geographic reach. We have therefore added three new European panel members and are recruiting two more.

The panel finds GSK honest and open in the discussions so they consider their participation to be valuable.However they commented that it takes GSK a long time to demonstrate changes that occur as a result of their suggestions and feedback. We value the feedback we receive from the panel and we will look for ways to speed up our response to their recommendations.

Many of our sites also engage with stakeholders locally on EHSS issues, through activities such as open days, newsletters and community projects.

Home Responsibility CR at GSK Stakeholder engagement Engagement on EHS

Back to top�

Page 20 of 336




Corporate Responsibility Report 2008About our reportingWelcome to our 2008 Corporate Responsibility Report.

This year we have reported on our activities and performance online, providing easy access to information on key issues plus the ability to build a custom version of our 2008 Report.

How we reportWe report our corporate responsibility activities and performance annually. This website contains a detailed account of our CR policies and performance in 2008. Selected performance information can also be downloaded, read more about how to use this website.

We also publish Corporate Responsibility Highlights which provides an overview of our approach to CR. It is available in print.

Data relate to worldwide operations for the calendar year 2008, except where stated.

Environmental data are collected from all 79 of our Pharmaceutical, Consumer Healthcare and Nutritionals manufacturing sites, 14 of the 15 vaccines sites (one is not yet in operation), 22 of 31 Pharmaceutical and Consumer Healthcare R&D sites including five whose environmental data are included with their host sites (nine are too small or too new to warrant collection of environmental data in 2008), the US and UK headquarters buildings and 15 smaller offices and distribution centres.

Injury and illness data are collected from all 79 of our Pharmaceutical, Consumer Healthcare and Nutritionals manufacturing sites, 14 of the 15 vaccines sites (one is not yet in operation), 29 of 31 Pharmaceutical and Consumer Healthcare R&D sites (two are considered too new to start reporting), the US and UK headquarters sites, 18 offices and sales groups with more than one million hours worked, and 46 of the smaller offices and distribution centres.

Data in the environment and health and safety sections are independently assured by SGS.

We use external guidelines to inform our reporting where relevant. We do not base our report on the Global Reporting Initiative (GRI) guidelines but we have produced a GRI index to show which elements of the guidelines are covered in the report and to aid comparison with other company reports. We have also joined the UN Global Compact and have provided an index to show how we are reporting in line with Global Compact expectations.

Brandnames appearing in italics throughout this report are trademarks either owned by and/or licensed to GSK or associated companies.

ContactWe welcome your feedback on any of the information contained in this report. Please contact us at:

Corporate ResponsibilityGlaxoSmithKline plc980 Great West RoadBrentfordMiddlesexTW8 9GSUnited Kingdom

[email protected]

Home Responsibility Corporate responsibility at GSK About our reporting

Page 21 of 336




Page 22 of 336




Corporate Responsibility Report 2008BenchmarkingGSK received the following ratings from benchmarking organisations:

IndexesOrganisation:Access to medicines index - Access to Medicines Foundation and Innovest Strategic Value Advisers

Rating: GSK was ranked highest in the index which assessed companies � contribution to improving access to medicines. GSK was the clear overall leader and was top in five of the eight categories assessed.

Organisation: Dow Jones Sustainability Index

Rating: GSK continued as a member of the Dow Jones Sustainability Index, which covers the top ten per cent of sustainable companies in each sector. GSK was awarded Silver Class and Sector Mover distinctions, improving from Bronze Class awarded in 2007. Classes are awarded to companies relative to the sector leader.

Organisation: FTSE4Good

Rating: GSK was included in the FTSE4Good Index.

�

Organisation: Global 100 Most Sustainable Corporations - Innovest Strategic Value Advisors

Rating: GSK was included in the 2009 list of the �Global 100 Most Sustainable Corporations�. Companies are selected because they demonstrate capacity to address sector-specific environmental, social and governance risks and opportunities.

Organisation: Business in the Community - CommunityMark

Rating: GSK was one of 21 companies and the only manufacturing company to be awarded the new CommunityMark, following independent assessment, for outstanding community investment. The Mark is endorsed by the UK government and voluntary sector leaders and was given for our work at local and national level in the UK as well as for our larger international programmes.

Organisation: Business in the Community - Environment Index

Rating: GSK maintained its position in the Platinum League of the 2007 index which assessed 155 companies.

Other investor ratingsOrganisation: Ceres

Rating: GSK was ranked 13th overall and 2nd in the pharmaceutical sector in Ceres�s climate change governance ranking of 63 of the world �s largest companies.

Home Responsibility Corporate responsibility at GSK Benchmarking

Page 23 of 336




Organisation: Storebrand

Rating: GSK achieved Best in Class status for its leading environmental and social performance. Storebrand assesses indicators including corporate governance, marketing ethics, standards for business partners, occupational health and safety, environmental risk management and labour relations.

ReportingOrganisation: Association of Chartered Certified Accountants (ACCA)

Rating: GSK Corporate Responsibility Report 2007 was shortlisted for an ACCA award, which recognises transparency and credibility in reporting.

Organisation: PwC Building Public Trust Award

Rating: GSK was one of three companies short-listed for the �People Reporting � award, which assesses the extent to which publicly available information enables stakeholders.

Organisation: SustainAbility Global Reporters benchmark

Rating: GSK�s 2007 report scored 66 per cent versus 54 per cent for the 2006 report, with improvements in every category and particularly accessibility and assurance.

Back to top

Page 24 of 336




Corporate Responsibility Report 2008Assurance and internal auditExternal assurance of EHS activitiesThe information we provide about environment, health and safety activities at GSK has been externally assured by independent, third-party assurers.

Our reporting on environment, health and safety performance is assured by SGS, an external assurer. The assurance process includes verification of key environment, health and safety data through site visits and telephone calls to EHS professionals and review of systems and processes for collecting, collating, analysing and interpreting the data. Read the EHS assurance statement by SGS.

External assurance of access to medicines activitiesIn our 2007 CR Report, information on access to medicines was externally assured. Read how we are responding to the recommendations made by the assurers on our access to medicines activity and reporting.

This year we did not conduct assurance on the CR report other than that described above for the EHS section. We plan to conduct assurance of one new section of the report every other year, so a section of the 2009 report will be subject to external assurance.

Internal audit and assuranceGSK has developed an assurance programme that provides a holistic assessment of internal control processes, risk management and audit within the company. A key part of this programme is an extensive and independent internal audit schedule, delivered by four specialist audit groups. These audits assess compliance with laws, regulations and company standards, and evaluate the effectiveness of the risk management process in identifying, managing and mitigating the more significant risks facing GSK.

Global Internal Audit (GIA) is responsible for evaluating the financial and operational controls that ensure financial reporting integrity and safeguard assets from losses, including fraud

Corporate Environment, Health, Safety and Sustainability (CEHSS) is responsible for assessing the management of health and safety risks and environmental impacts

Global Manufacturing Supply Audit and Risk Management (ARM) assesses the quality and supply risks relating to manufacturing and supply chain processes for GSK commercial products

Global Quality and Compliance (GQC) is responsible for assessing risks relating to medicines, vaccines and medical devices throughout the product development process, including the manufacture of clinical trial material

The central assurance function is responsible for developing the assurance programme, and for ensuring that the GSK audit groups work together in the most efficient and effective way to deliver the audit schedule.

Global Internal Audit audits the other three audit groups for alignment with the Institute of Internal Auditors�International Standards for the Professional Practice of Internal Auditing.

The CEHSS, ARM and GCQ audit groups have additional responsibilities for the auditing of contract manufacturers and key suppliers to GSK.

GSK employs approximately 150 full-time internal auditors across the four audit groups. Audits range in duration from two man-weeks for simple activities where the scope is limited, to several months for an audit involving complex or highly technical processes. The audit teams may also be supplemented by external

Home Responsibility Corporate responsibility at GSK Assurance and internal audit

Page 25 of 336




g p g y p y pp yexperts with specific technical skills, or by the use of guest auditors from within the business.

Audits are conducted based on the level of risk. They regularly assess the level of internal control for a number of responsibility areas, including:

Animal researchBusiness continuity planningCommunity investmentConduct of clinical trialsEmployment practicesEnvironmental factorsEthical conductFinancial processesHealth and safetyInformation technologyIntellectual propertyInteractions with patient groupsManufacturing and supply chain standardsPatient safetySales and marketing practices

When issues or control deficiencies are identified, the audit groups recommend processes for improvement. GSK managers develop corrective action plans to eliminate the causes of non-compliance and gaps in internal controls. The audit groups track these plans to completion and report results to senior management and the Audit Committee.

Each audit group reports to the Audit Committee as part of the assurance programme, and provides an assessment of whether adequate controls are in place to manage significant risks. Any significant audit results are also reported to the Audit Committee at the earliest opportunity.

Back to top

Page 26 of 336




Corporate Responsibility Report 2008Corporate responsibility data summary

Home Responsibility Corporate responsibility at GSK Corporate responsibility data summary

Metric 2004 2005 2006 2007 2008

Access to medicines

Number of countries supplied with GSK preferentially priced ARVs1 57 56 51 31 37

Number of Combivir and Epivir tablets shipped (millions) 66.4 126.3 86.3 85.0 70.0

Number of generic ARVs supplied under licence from GSK (millions) - - 120 183 279

GSK Combivir not-for-profit price ($ per day)2 0.65 0.65 0.65 0.54 0.54

Voluntary licences granted to generic manufacturers for GSK ARVs (cumulative total)3

6 7 9 9 9

Value of products donated through GSK Patient Assistance Program in the US (��millions, 2008-2007 at cost, 2006-2004 at wholesale price (WAC))4

203 255 200 45 56

Research and Development

Expenditure on R&D (��billions) 2.9 3.1 3.5 3.3 3.7

GSK animal research facilities accredited by the Association for Assessment andAccreditation of Laboratory Animal Care (cumulative total)5

10 10 10 10 10

Number of trials published on the GSK Clinical Study Register (cumulative total) 143 2,125 2,760 3,089 3,273

Ethical conduct

Number of employees completing certification to the GSK Code of Conduct 9600 >12,000 >12,000 >14,000 >14,000

Number of contacts through our ethics compliance channels6 2580 3644 5363 5265 3812

Employment

Women in management grades (%) 35 35 36 37 38

Ethnic diversity - people of colour (US, %) 19.5 19.6 19.8 20.1 20.5

Page 27 of 336




1. Includes ARVs sold at not-for-profit and discounted prices. We are unable to collect data for the number of patients treated.

2. Includes freight and delivery costs. The M�decins Sans Fronti�res pricing report lists the average cost of generic equivalents.

3. Only eight are currently in force.

4. 2008 and restated 2007 figures reflect value at cost (average cost of goods) rather than wholesale acquisition price (WAC). This is the first year we have valued our donations this way and believe it is a more accurate reflection of the true cost to GSK and is therefore more transparent. 2004 to 2006 figures remain at WAC.

5. This covers over 90 per cent of the animals housed in GSK-owned laboratories.

6. Includes contacts with line managers, compliance officers, our confidential Integrity Helplines or offsite

Ethnic diversity - ethnic minorities (UK, %) 14.8 14.9 18.3 19.1 19.2

Lost time injury and illness rate (cases per 100,000 hours worked) 0.32 0.32 0.34 0.35 0.33

Environment

Number of contract manufacturers audited 35 41 36 55 53

Energy consumption (million gigajoules) 19 19 19 19 19

Water consumption (million cubic metres) 21 22 22 21 20

Ozone depletion potential from metered dose inhalers (tonnes CFC-11 equivalent)7 464 273 182 136 88

Ozone depletion potential from production (tonnes CFC-11 equivalent) 59 51 33 15 5

Ozone depletion potential from refrigeration and other ancillary uses (tonnes CFC-11equivalent)

3 3 1 1 <1

Volatile organic compound emissions (thousand tonnes) 5 5 4 4 4

Global warming potential from energy sources (thousand tonnes CO2��

81,667 1,717 1,704 1,702 1,722

Hazardous waste disposed (thousand tonnes) 71 67 70 72 54

Community investment

Total community investment expenditure (��millions, 2008-2007 at cost, 2006-2004 at wholesale price (WAC))4

328 380 302 109 124

Value of humanitarian product donations, including albendazole (��millions, 2008-2007at cost, 2006-2004 at wholesale price (WAC))4

57 41 38 7 12

Number of albendazole tablets donated for prevention of lymphatic filariasis (millions) 67 136 155 150 266

Page 28 of 336




post office box (in the US).

7. 2004 data do not include inhalers made in Asia.

8. Climate change impact is calculated as CO2 equivalent using the Greenhouse Gas Protocol developed by the World Resources Institute and the World Business Council for Sustainable Development. Each year we review the CO2 factors and update the data for all years as appropriate. The greatest changes are generally in the updated factors for electricity.

Back to top

Page 29 of 336




Corporate Responsibility Report 2008Resources and downloadsReporting2008 Corporate Responsibility ReportCommitment to transparency and accessCorporate Responsibility Highlights 2008 (PDF 325Kb)GRI Index (PDF 103Kb)Global compact index (PDF 24Kb)Corporate responsibility data summaryEnvironmental metricsArchive reports

Additional resourcesAccess to medicines

Briefing paper: Access to medicines (PDF 46Kb)

Findings from stakeholder engagement sessions:

GSK access to HIV medicines workshop (PDF 63Kb)GSK DDW workshop findings (PDF 68Kb)GSK MIC workshop findings (PDF 87Kb)

Ethical conduct

GSK Code of Conduct (PDF 89Kb)Employee Guide to Business Conduct (PDF 4.3Mb)GSK European Promotion of Medicines Code of Practice (PDF 450Kb)

Human rights

Human rights statement (PDF 30Kb)

Public policy and patient advocacy

Our Public policy position statementsDetails of relationships with patient groups

Home Responsibility Corporate responsibility at GSK Resources and downloads

Back to top

Page 30 of 336




Corporate Responsibility Report 2008Contribution to global healthHow we respond to society�s healthcare needs is the most important responsibility issue for GSK. It is also central to our commercial success.

Ill health and disease continue to place a huge burden on society: from the AIDS epidemic in Africa and Asia to the health needs of an ageing population in the developed world and the huge global growth in chronic diseases such as diabetes. Emerging diseases such as pandemic flu pose potentially serious threats. Ill health is also expensive: it can increase healthcare costs and reduce economic productivity.

Our business makes a significant contribution to society by bringing products to market that address the medical needs of patients around the world. We make a contribution in four key areas:

Preventing disease: we are one of the world �s largest producers of vaccines for diseases prevalent in developed and developing countries. We also prevent disease through our community investment, disease awareness work and our over-the counter products

Treating ill health: many of our products treat diseases that place a high burden on society

Investing in R&D: our pipeline includes new medicines and vaccines that are needed in developing and developed countries

Contributing to scientific understanding: we participate in partnerships that advance scientific knowledge and lay the ground for future medical advances

We believe that while our business makes a significant contribution to society, there is more we can do. We are looking at ways to accelerate research into neglected diseases by sharing research resources and findings with other organisations and expanding our partnerships with governments, NGOs and other pharmaceutical companies. We also want to partner with others to support delivery of healthcare services as well as medicines.

Our products are only beneficial if they are accessible and affordable to healthcare payers and patients. Read about our efforts to increase access to our key products in developing and developed countries and how we support healthcare programmes through community investment.

Home Responsibility Contribution to global health

Back to top

Page 31 of 336




Corporate Responsibility Report 2008The cost of diseaseIll health is expensive for the individual and for society. It is often a result of poverty but it is also an important cause of poverty.

For patients it can mean loss of quality of life, loss of earnings and shortened life expectancy. It can place a great burden on families � for instance the need to care for sick relatives can reduce attendance at school or work. For governments, employers and taxpayers it can mean increased healthcare costs and loss of workforce productivity.

In Africa and parts of Asia, AIDS has had a serious effect on social and economic development, undermining progress towards the Millennium Development Goals and poverty reduction efforts. The World Bank estimates that the deaths of working age adults from HIV/AIDS may subtract one per cent a year from GDP economic growth in some sub-Saharan African countries. In South Africa HIV/AIDS may depress GDP by as much as 17 per cent over the next decade1. Malaria is estimated to cost African nations at least $12 billion a year in lost economic output2. The economic cost of TB-related deaths, including HIV co-infection, in sub-Saharan Africa is estimated at $519 billion between 2006 and 20153.

Read about our research into diseases of the developing world and our efforts to help people in these countries access essential medicines and vaccines .

According to the US government �s Centers for Disease Control and Prevention (CDC), the costs of chronic disease in the US alone include4:

$174 billion a year in direct and indirect costs due to diabetes

$81 billion in annual medical care costs for arthritis, and total costs including medical care and lost productivity of almost $128 billion

$448 billion projected cost for 2008 for heart disease and stroke

Read about how we are working in partnership in the US to combat chronic disease and the role of our vaccines in preventing disease.

1. www.who.int/trade/glossary/story051/en/index.html2. Rollback Malaria http://rbm.who.int/globaladvocacy/pr2007-11-29.html3. http://www.who.int/mediacentre/news/releases/2007/pr64/en/index.html4. www.cdc.gov/nccdphp/overview.htm

Home Responsibility Contribution to global health The cost of disease

Back to top

Page 32 of 336




Corporate Responsibility Report 2008The role of vaccinesVaccines play a major role in preventing and eliminating disease.

Immunisation is acknowledged by the World Health Organization (WHO) as being �among the most cost-effective of health investments�. Immunisation programmes make a substantial contribution to the aims of the United Nation �s Millennium Development Goals for economic growth.

It is estimated that at least three million deaths are prevented and 750,000 children are saved from disability due to vaccines every year1. The number of deaths in Africa from measles fell 91 per cent between 2000 and 2006 due to better coverage of routine immunisation programmes and targeted campaigns to ensure that children had a second chance to be vaccinated2.

Despite this progress vaccines are under-used. It is estimated that the lives of over two million children could be saved each year if existing vaccines were made accessible to all who need them. This will require sustained financing and the development of innovative vaccination programmes.

GSK is among the world�s top vaccine providers. We have over 30 vaccines approved for marketing and over 20 in our R&D pipeline, one-third of which target diseases particularly prevalent in the developing world. GSK vaccines are included in immunisation campaigns in 169 countries worldwide. Over 1,600 scientists work in vaccine research at GSK and we believe our vaccine pipeline is the largest in the industry. We remain committed to researching and developing vaccines for all three WHO infectious disease priorities, tuberculosis, HIV and malaria. Together with the PATH Malaria Vaccine Initiative, in 2008 we demonstrated in phase ll trials significant protection against malaria for infants and young children with GSK �s RTS,S candidate vaccine. Read more about the malaria vaccine.

In 2008 we supplied 1.1 billion vaccine doses. Of these, nearly 80 per cent were shipped for use in developing countries. Read about our tiered pricing system for vaccines.

Our vaccine portfolio addresses the medical needs of developing and developed countries. Our portfolio covers most of the leading causes of childhood mortality, as defined by the World Health Organization.

Our vaccine range includes products that protect against the following diseases:

1. Ehreth J. The Global Value of Vaccination. Vaccine (2003); 21 (7-8):596-600

2. Progress in Global Measles Control and Mortality Reduction, 2000-2006

Home Responsibility Contribution to global health The role of vaccines

Cervical cancer Pneumococcal disease

Chickenpox Polio

Diphtheria Rotavirus

Hepatitis A and B Rubella

Measles Seasonal influenza

Meningitis Tetanus

Mumps Typhoid

Pandemic influenza Whooping cough (Pertussis)

Page 33 of 336




www.who.int/wer/2007/wer8248.pdf

Back to top

Page 34 of 336




Corporate Responsibility Report 2008Treating ill healthWe help to treat ill health by developing medicines and consumer healthcare products.

We are also working with governments and employers in the US to find innovative ways to reduce the impact of chronic diseases.

Our pharmaceutical products target diseases in the following areas:

Anti-bacterials (antibiotics) and anti-malarials: infections, malariaAnti-virals: HIV/AIDS, herpes, hepatitis B, influenzaCardiovascular: heart failure, hypertension, deep vein thrombosisCentral nervous system: migraine, epilepsy, anxiety, depression, Parkinson�s disease, smoking cessation, anaesthesia, analgesia, anti-emeticsDermatology: eczema, dermatitis, psoriasisMetabolic: diabetes, osteoporosis, obesityOncology: breast, cervical, lung and ovarian cancer, non-Hodgkins lymphoma, leukaemia, idiopathic thrombocytopaenic purpuraRespiratory and immuno-inflammation: asthma and chronic obstructive pulmonary disease, rhinitis, post-operative ileusUrogenital: prostatic hypertrophy, over-active bladder

We also make vaccines which prevent serious diseases.

Our products help to improve health in a number of ways:

Prolonging life � our anti-retrovirals (ARVs) such as Combivir help patients to control the effects of HIV infection for many years. We sell our ARVs to the Least Developed Countries and to countries in sub-Saharan Africa at not-for-profit prices. Read more about our efforts to increase access to medicines

Preventing complications � many diseases such as diabetes are progressive if patients do not receive the right treatment they can suffer severe complications. For example, every day in the US diabetes is the cause of an estimated 225 lower limb amputations, up to 66 cases of blindness, and 117 people experiencing kidney failure. Avandia, our diabetes treatment, helps patients to control their symptoms, delays the progression of the disease and prevents complications. Avandia has now been used by more than seven million people worldwide.

Improving quality of life � many of our medicines such as those for asthma and diabetes help patients with chronic diseases live full and productive lives. GSK preventative treatments for asthma such as Seretide/Advair control the symptoms of asthma and prevent asthma attacks

Curing infection � we produce antibiotics that treat respiratory tract and other infections. We donate antibiotics to help relief efforts in disaster areas

Paracetamol

Paracetamol is widely used as a low-cost medicine for treating adult and child pain and fever, and is listed as one of the World Health Organization �s essential medicines.

GSK produces ten billion tablets each year of our over-the-counter paracetomol product, Panadol, which

Home Responsibility Contribution to global health Treating ill health

Page 35 of 336




is available in more than 85 countries. This includes low- and middle-income countries, where we provide more affordable low-cost single-dose packs.

Medical guidelines across the globe recommend paracetamol, the medicine in Panadol, as the first-lineoral painkiller for chronic diseases such as osteoarthritis due to its efficacy, safety profile and cost-effectiveness. It is also a first-choice treatment for other conditions such as headache, backache and children �s fever.

Paracetamol is the recommended treatment for the symptoms of dengue fever, a debilitating and life-threatening disease that is transmitted by mosquitoes in tropical and sub-tropical regions. More than 2.5 billion people are at risk for infection � two-fifths of the world�s population � in over 100 countries.

Read about our efforts to increase awareness of dengue fever and correct treatment

Back to top

Page 36 of 336




Corporate Responsibility Report 2008Partnering to combat chronic diseases Healthcare costs in many countries are a concern for patients, healthcare payers and the pharmaceutical industry alike. The increase in prevalence of many chronic diseases such as asthma, diabetes and heart disease is a major contributing factor.

We are working with governments and employers to find new ways to address the problem of chronic diseases while reducing healthcare costs. Our approach, known as the �triple solution �, has three focus areas:

Prevention � addressing the causes of chronic diseases, such as obesity and smoking, poor diet and lack of exercise

Intervention � properly managing chronic diseases to prevent complications, avoid hospitalisation costs and reduce time away from work

Innovation � developing new treatments for costly unmet medical needs such as Alzheimer �s disease and stroke

Working with employers and communitiesIn the US, healthcare is a major source of expenditure for the government, employers and consumers. In 2006, expenditures in the US on healthcare exceeded $2 trillion.

Additionally, absence from work due to ill health can be a significant cost that often goes unrecognised. We work closely with state and local public health agencies and a large number of employers across the US to help them create health management programmes that remove barriers to healthcare access, reduce healthcare costs and improve health.

Our organisation has worked with more than ten states, five municipalities and 200 employers to:

Help address some of the diseases that put a great burden on healthcare budgets

Encourage employers to provide preventative services to workers, for example, regular health screening to detect early signs of disease, awareness campaigns and initiatives to help employees adopt a healthy lifestyle.

Develop disease management programmes which help employees control their symptoms and stick to their treatment regimens

Initiate comprehensive wellness initiatives for obesity and smoking, for which we have leading products.Smoking is the leading cause of death and disease in the United States. The direct and indirect costs associated with being overweight and obese are estimated to exceed $100 billion per year in the US, approximately nine per cent of annual medical expenditures.

We may advise employers to create new incentives for better health management, for example by reducing the co-pay element of prescription medicine charges. This can increase the total amount employers pay forpharmaceuticals in the short term. However, by improving patient medication adherence rates, it can prevent costly complications and time away from work in the longer term, and so help to lower overall healthcare costs.

The Diabetes Ten City Challenge

Home Responsibility Contribution to global health Treating ill healthPartnering to combat chronic disease

Page 37 of 336




Each day in the US, diabetes causes an estimated 225 lower limb amputations and up to 66 people to lose their sight. However, with the right treatment many of these complications can be prevented.

The Diabetes Ten City Challenge, supported by GSK, is a partnership of city governments and private employers in ten cities, the American Pharmacist Association (APhA) Foundation and pharmacists. It helps employees with diabetes manage their condition through nutrition and medication and by adopting a healthy lifestyle. It aims to prevent serious side-effects and reduce associated healthcare costs.

Key features include:

Lower co-pays (the portion of prescription costs paid for by the patient), making medicines more affordable and making it more likely that patients will adhere to their prescribed treatment regimen

Regular meetings between patients and pharmacists to discuss symptoms and identify any potential complications as early as possible

Help for participants to set and achieve nutrition, exercise and weight loss goals, including printed materials and meetings with pharmacist coaches

We share the Challenge �s findings and resources with other employers outside the ten cities through a dedicated website.

The programme is based on the APhA Foundation�s Asheville Project, which helped reduce healthcare costs for participating employees by over 34 per cent and cut absenteeism by 50 per cent on average. A pilot project based on the Asheville Project has now been launched in Japan. Run by a team from Showa University, the pilot will involve 100 diabetes and asthma patients over a two-year period.

Community health centres In 2008 we donated over $130,000 to the St Cecilia�s health centre in New Orleans � Ninth Ward, a part of the city which saw great devastation during Hurricane Katrina. The money has been used to fund the clinic �sCommunity Diabetes Outreach Program, which has helped it to exceed the US national average for the percentage of diabetics receiving regular tests and controlling their symptoms.

Read more about our efforts to raise awareness and prevent disease.

Back to top�

Page 38 of 336




Corporate Responsibility Report 2008Disease awareness and preventionWe are one of the world �s largest producers of vaccines which play a vital role in preventing disease.

We also develop over-the-counter products which help people to stop smoking, lose weight and maintain good oral health.

We help to raise awareness among healthcare professionals and the public through our work with patient groups and our own disease awareness campaigns. These can take place to coincide with the launch of a new product or after it is on the market. This can have a positive impact on public health and create commercial benefits for GSK.

Read more about our efforts to raise awareness and prevent disease.

Home Responsibility Contribution to global health Disease awareness and prevention

Page 39 of 336




Corporate Responsibility Report 2008Raising awareness about diseaseIn 2008, we ran a range of disease awareness campaigns including:

Pandemic flu

The World Health Organization considers that the world is now closer to another flu pandemic than at any time since the last outbreak in 1968. In 2008, we held a workshop for journalists at the European Influenza Congress in Portugal to highlight the threat of pandemic flu. Journalists play an important role in raising government awareness of health issues and influencing health policy.

During the workshop, participants spent two hours talking to independent experts, discussing key subjects such as what we can learn from past pandemics, the personal and economic impacts of an outbreak, the role of vaccines and what governments should do to prepare.

Read about GSK �s flu products and our efforts to help prepare for pandemic flu.

Cervical cancer

Our vaccine Cervarix helps to prevent infection from the cancer-causing types of the Human Papillomavirus (HPV) which most commonly lead to cervical cancer. A year before we launched Cervarix in Europe, research in this region showed that as few as two per cent of women knew of the link between HPV and cervical cancer. Since then, we have run disease awareness campaigns across many countries to highlight this link and educate people on the importance of screening to help prevent cervical cancer. The campaigns target healthcare professionals, media, policy makers and women through press articles, educational events for healthcare professionals and support for cervical cancer patient groups and their activities, such as the European Cervical Cancer Prevention Week.

Rotavirus

Rotarix is our vaccine against rotavirus, a leading cause of gastroenteritis infection. Rotavirus is associated with 25 million clinic visits, two million hospitalisations and more than 600,000 deaths worldwide among children under five every year1. The launch of Rotarix in Mexico in 2004 and other Latin American countries was preceded by a widespread disease awareness campaign. To achieve this, GSK educated journalists about gastroenteritis infection caused by rotavirus, its causes, how to prevent it and how to detect its symptoms early. Rotavirus can quickly become fatal if a child becomes dehydrated and does not receive treatment.

Our educational materials discuss vaccination and give guidance on prompt detection and treatment methods.

Chronic diseases in the US

Our US Healthy Communities programme, which has offered free health screenings in communities across the country, aims to educate people about chronic diseases and encourage them to take better control of their health. People who do not manage their chronic diseases may develop further complications, leading to greater health problems.

In 2008 we announced the findings of nationwide health screenings of 65,000 people conducted as part of the programme. Although approximately 70 per cent of participants reported their health to be excellent, tests indicated that many were not in good health. For example, nearly half of the participants with type 2 diabetes showed poor glucose control. Nearly a third of the asthmatics we screened had poor control of their

Home Responsibility Contribution to global health Disease awareness and preventionRaising awareness about disease

Page 40 of 336




condition. Of the individuals with poorly controlled diabetes or asthma, over two-thirds had not visited a primary care physician in the past year2.

GSK partnered with the National Association of Chronic Disease Directors (NACDD) and WebMD, the health information site, to help people become more engaged in managing their health. As part of our �triple solution �approach we encourage people to assess their risk of chronic diseases using a health check tool that provides advice about the five biggest health risks.

Dengue fever

Paracetamol is the recommended effective symptomatic treatment for dengue fever, a debilitating disease that is transmitted by mosquitoes in tropical and sub-tropical regions. Few people know the correct treatment for dengue fever, especially for children. People often use other fever-reducers such as aspirin which can exacerbate bleeding, a symptom of dengue fever. They also seek medical treatment late, which increases the risk of serious complications and death.

Panadol, GSK �s over-the-counter paracetamol brand, has a strong presence in regions where dengue fever is prevalent, notably Asia, Africa, the Middle East and Central and South America. GSK is in a position to take the lead in driving global awareness among healthcare professionals and the public against the dengue fever threat. We initiated and sponsored a dengue fever public awareness campaign in high-risk areas including the Caribbean and South-East Asia. We have worked in collaboration with organisations such as UNICEF and the Pan America Health Organization. We also engage with locally respected campaign ambassadors.

The campaigns increase awareness through television, radio and PR activities as well as roadside banners and posters in hospitals, public health centres, pharmacies and drugstores. Local media have picked up on these activities, helping to raise awareness further. Health professionals are targeted to raise awareness and provide information that can help in diagnosis and treatment. Free Panadol samples are distributed in hospitals.

A campaign run in Costa Rica during 2006 contributed to a 68 per cent reduction in dengue fever cases as reported by the Board of Health. In 2007, when the campaign did not run, the number of cases increased by 110 per cent. In 2008, GSK activated the campaign again in collaboration with The Board of Health. By the end of 2008, the 'I save lives' campaign contributed to a 72 per cent reduction in dengue cases. Similarly the Panadol campaign contributed to decreases in South-East Asian dengue cases especially in Indonesia where the dengue fever fatality rate dropped by 40 per cent in 2008 over the previous year. GSK is planning to continue this campaign in 2009 and beyond.

1. Parashar UD, et al Global illness and deaths caused by rotavirus disease in children. Emerg Infect Dis 2003; 9:565-72

2. Data on file

Back to top�

Page 41 of 336




Corporate Responsibility Report 2008Preventing disease VaccinesVaccines make a significant contribution to health and are recognised as one of the most successful ways of preventing disease. Vaccines are second only to clean drinking water in reducing the impact of infectiousdiseases.

GSK is one of the largest suppliers of vaccines and is the leading supplier of childhood vaccines to UNICEF.

Vaccines are designed to eradicate or control disease and on an individual level to prevent disease or limit its severity. They can be highly cost effective and benefit both society and individuals.

Vaccines have widespread endorsement from supranational organisations, including the WHO and the United Nations. The World Bank proposes that governments should make immunisation a priority for theirhealthcare investment.

Immunisation programmes successfully eradicated smallpox worldwide and have made significant progress towards the elimination of polio. Even when global eradication is not possible, diseases can be reduced to very low levels if vaccination is maintained at high levels. For example, where Haemophilus influenzae type b vaccines are used, bacterial meningitis caused by this virus has been dramatically reduced.

The majority of cervical cancers are now preventable with vaccination against the Human Papillomavirus (HPV) combined with cervical screening. GSK�s vaccine against HPV, Cervarix, is now available in more than 90 high-, middle- and low-income countries around the world and we are committed to working to accelerate global access to the� ��Cervarix was chosen as the vaccine for the National Immunisation Programme (NIP) in the UK, the largest Human Papillomavirus immunisation programme in the world to date. Since the NIP launch in September 2008, over 70 per cent of girls aged 12 to 13 have been vaccinated.

Consumer healthcare productsSmoking cessationSmoking is a major public health problem, contributing to around five million premature deaths worldwide every year. Nicotine replacement therapies (NRT) can significantly increase a smoker�s chance of stopping. GSK created the first over-the-counter NRT and we now market a range of nicotine replacement brands, including NiQuitin CQ/NicoDerm, Commit lozenge and Nicorette. They have helped more than 6.5 million people stop smoking since 1996.

We estimate that around 20 per cent of smokers currently have access to NRT. We aim to increase this figure to more than 80 per cent by 2013 by launching our nicotine replacement brands in new markets. �Poverty can be a major barrier to NRT purchase, especially in emerging markets. We provide smoking cessation education and counselling support to the Brazilian government as part of its efforts to help low-income smokers who are trying to stop smoking. In 2008, we supported a petition submitted by the New York Commissioner of Health, asking the US Food and Drug Administration (FDA) to allow over-the-counter NRTproducts to be sold wherever cigarettes are sold and permit the sale of smaller packs with fewer doses that would have much lower prices. The FDA does not currently allow the sale of smaller, or one-day, affordable pack sizes.

In the UK, we support the National Health Service�s Stop Smoking Clinics. We provide the clinics with educational materials and run online and telephone support for smokers. We also help train NHS nurses and pharmacists as �stop smoking� advisers.

Home Responsibility Contribution to global health Disease awareness and preventionPreventing disease

Page 42 of 336




Preventing obesityObesity is a major cause of ill health and disease such as diabetes. alli, our over-the-counter weight-losstreatment, helps people lose weight when combined with a low-fat, reduced calorie diet.

alli has been marketed in the US since 2007. In 2008 it received a positive opinion as a non-prescriptionproduct from the European Medicines Agency (EMEA) Committee for Medicinal Products for Human Use. In January 2009, the European Commission granted a non-prescription licence for the product. Since its launch in the US, six million starter packs of alli have been sold, helping millions of people to lose weight.

Read a case study on how we ensure that alli is marketed responsibly.

Oral healthcareIt is important that people maintain good oral health, to prevent gum disease and tooth decay. Our oral healthcare products include toothpastes, mouth washes and denture cleaners.

Our facility in Weybridge, UK, which makes global brands Aquafresh and Sensodyne, is the largest oral healthcare research centre in Europe. Employees from the facility regularly visit oral healthcare conferences and publish articles in journals, to promote the importance of using oral healthcare products such as ours.

We co-sponsor the Innovation in Oral Care Awards with the International Association for Dental Research and we run an award scheme that recognises innovative research into preventing mouth infections and improving oral healthcare diagnostics.

Community investmentWe also invest in community activities that focus on disease prevention. For example, we participate in the Global Alliance to Eliminate Lymphatic Filariasis, a leading cause of disability in tropical countries. OurPHASE hand-washing programme helps to prevent the spread of diarrhoea-related disease in children in developing countries.

Back to top

Page 43 of 336




Corporate Responsibility Report 2008Investing in R&DDespite advances in healthcare there are still many diseases for which there is no cure or for which treatments could be improved.

Continued research and innovation is essential. Our investment in R&D into new medicines and vaccines is at the core of our business.

In 2008, we spent �3.7 billion on R&D. Over 80 per cent of this expenditure was in pharmaceutical R&D with the remainder in vaccine and consumer healthcare R&D.

We have nearly 150 prescription medicines and vaccines in clinical development, detailed in R&D of our Annual report. Our current late-stage pipeline includes products targeting diseases including many forms of cancer, infections, respiratory diseases, autoimmune disorders, metabolic and cardiovascular disease, psychiatric disorders and neurological diseases.

In 2008, nine new products were approved for the first time. We made six first submissions for new products and product line extensions. For example, reflecting our strong focus on oncology, in December 2008 we filed in the US for a licence for pazopanib for the treatment of advanced renal cell carcinoma.

Read about how we ensure high ethical standards in our R&D activity.

Expanding research capabilities and improving productivityOne of our strategic priorities is to improve R&D productivity. During 2008 the R&D organisation was restructured to support this. The changes are described in the R&D section of our Annual report.

In early 2008 we conducted a review, involving external experts, to identify the therapy areas where recent advances in science mean that there is more probability of finding new treatments. Based on the outcomes of the review, we refocused our early-stage research activities on the following areas:

BiopharmaceuticalsImmuno-inflammatory diseasesInfectious diseasesMetabolic pathwaysNeurosciencesOncologyOphthalmologyRespiratory diseases

R&D in China

Our Chinese R&D centre, opened in 2007, now has over 200 employees and in 2008 moved to state-of-the-art facilities in Shanghai. The centre is investigating neurodegenerative disorders such as Alzheimer�s disease, Parkinson �s disease and multiple sclerosis.

The centre is already progressing an early pipeline from target validation to candidate selection. We intend to develop the centre into our lead facility for global discovery and development activities in neurodegenerative disorders.

The costs of conducting research in China can be lower than in other markets. However, lower costs are

Home Responsibility Contribution to global health Investing in R&D

Page 44 of 336




not the primary reason for opening the facility. China offers a huge pool of scientific talent � our 2008 recruitment roadshow reached over 1,200 PhD graduates at ten top universities.

Our R&D in China is conducted to GSK�s global quality and ethical standards. All our R&D policies and monitoring procedures are global and apply to our operations in China.

Investing in new areas of scienceWe are investing in technologies which are providing new opportunities for medical intervention, including:

Stem cell technologyWe believe that stem cell science has great potential to aid the discovery of new medicines by improving screening, identification and development of new compounds. Using stem cells could also help us to develop medicines that are safer and more effective.

Read about our collaboration with the Harvard Stem Cell Institute and our participation in the Stem Cells for Safer Medicines, a public-private partnership.

External collaborationsGSK does not have a monopoly on the best science and we are expanding our collaborations with external partners and business development activities to access innovations from outside our own organisation. We now have 35 external collaborations underway to complement our 35 internal Discovery Performance Units.

Our immuno-inflammation Centre of Excellence for Drug Discovery announced a five-year research partnership with the Immune Disease Institute (IDI) in Boston, US. The partnership will combine IDI�s world-class immunological expertise with GSK �s pharmaceutical capabilities.

In 2008 we also signed our first agreement with the University of Cambridge to develop a compound with the potential for treating obesity and addictive disorders. The University will contribute know-how and expertise and will bear some of the financial risk for which they will be compensated if the programme is successful.GSK will provide operational support, access to our in-house clinical research and imaging facilities, and background preclinical data on the drug.

Cambridge University will dedicate a team of academic experts in both neuroscience and metabolic disorders. Importantly, the agreement allows the academic scientists the freedom to publish the results from their work on �incubator � projects.

In 2008 we acquired the pharmaceutical company Sirtris, which is the leader in research into sirtuins, a recently discovered class of enzymes believed to be involved in the ageing process. The combination of the specialist knowledge within Sirtris and GSK �s development capabilities will provide the best possible chance of validating this new approach to diseases of metabolism and ageing.

Read more about our investment in new technology in our Annual report.

Back to top

Page 45 of 336




Corporate Responsibility Report 2008Contributing to scientific understandingWe fund basic medical research conducted outside GSK to increase understanding of the human body and the impact of disease.

This is often the foundation for future advances in the diagnosis, treatment and prevention of disease. Often this research is conducted in partnership with others, using very new technologies.

Examples from 2008 include:

Open innovationIn December 2008, we announced a joint �4.1 million investment with the Wellcome Trust to generate �chemical probes � for 25 proteins involved in epigenetic signalling and to make them available to other researchers, without restriction. The partnership is part of our new commitment to promote openness in research collaborations. GSK and other pharmaceutical companies have traditionally kept research data confidential.

This public-private partnership will be led by the Structural Genomics Consortium, and involve the National Institutes of Health �s Chemical Genomics Centre in Washington, US, and the University of Oxford. The initiative could offer a new model for future interactions between academia and industry.

Collaborating to accelerate drug developmentIn 2008 we renewed our support for the University of Dundee �s Division of Signal Transduction Therapy (DSTT), in collaboration with the Medical Research Council and a consortium of other pharmaceutical companies.

The aim of the DSTT is to accelerate the development of drugs that treat diseases such as cancer, diabetes and rheumatoid arthritis by targeting kinase and phosphatase enzymes. The collaboration will provide �10.8million to the DSTT between 2008 and 2012.

GSK has been working with the PATH Malaria Vaccine Initiative (MVI) since 2001 to develop the paediatric vaccine against malaria, RTS,S/AS. In December 2008 the partnership announced study results which showed that RTS,S/AS provides both infants and young children with significant protection against malaria. Pending national regulatory approvals, phase lll studies will start in seven countries across Africa in early 2009.

Patient safetyA GSK team won a 2008 Wall Street Journal �Technology Innovation Award � for Healthcare IT. The team developed a new software system that helps to screen novel drug candidates for potential safety issues.

The system, known as Molecular Clinical Safety Intelligence (MCSI), helps GSK researchers to screen and prioritise novel drug candidates for potential adverse medical reactions at a much earlier stage, prior to clinical trials. The software enables direct translation of safety knowledge from human clinical experience to early-stage drug discovery for the first time.

Read more about patient safety at GSK.

Home Responsibility Contribution to global health Contributing to scientific understanding

Back to top

Page 46 of 336




Corporate Responsibility Report 2008Academic collaborationsWe invest in research capabilities at universities, fund leading-edge academic research projects and support science students. We have more academic collaborations than any other UK-based company, providing support of more than �24 million in 2008.

Our support benefits academic institutions through increased funding, technology transfer and access to our research facilities and expertise. It contributes to better scientific understanding and capability in the countries where we operate. It benefits GSK by enabling us to tap into R&D expertise and activity outside the company and expands our potential recruitment pool of better trained scientists.

Our support in 2008 included:

The Academic Discovery Performance Unit, a new initiative to combine the best academic thinking with GSK �s industry expertise

A new agreement with the University of Cambridge to develop a novel agent with therapeutic potential for treating obesity and addictive disorders

Alliances with leading universities to help accelerate drug discovery. For example, we have established research agreements with Trinity College Dublin and the University of Manchester

A collaboration with agencies including the UK Engineering and Physical Sciences Research Council (EPSRC) and the Wellcome Trust to fund projects of mutual interest

Training in GSK laboratories for undergraduates

The intellectual property rights relating to academic collaborations are typically held by GSK but our partner institutions are free to use the outcome of the collaboration for their own future research. The university also receives a percentage of any financial returns derived from the new intellectual property.

Home Responsibility Contribution to global health Contributing to scientific understandingAcademic collaborations

Back to top�

Page 47 of 336




Corporate Responsibility Report 2008Pandemic flu: responding to the H1N1 outbreak Updated 24 August 2009.

We have been preparing for an influenza pandemic flu for many years, researching and developing pre-pandemic and pandemic vaccines, antivirals and face masks, as well as our existing antibiotics portfolio. Our preparations meant we were able to respond rapidly when a new influenza A (H1N1) strain emerged in Mexico in late April 2009.

The World Health Organization�s (WHO) decision on 11 June 2009 to move to Pandemic Alert Level 6 sent a particularly strong message to governments and other stakeholders involved in pandemic preparedness to ensure that adequate and robust plans are in place to respond to the new strain of H1N1 (known as �swineflu�).

A collaborative global response involving governments, international organisations and businesses is needed to reduce the impact of H1N1. GSK is committed to supporting governments and health authorities around the world to respond to this challenge.

GSK�s contribution We offer three key products to combat pandemic flu: an H1N1 pandemic vaccine, Actiprotect a face mask and Relenza, an antiviral,. We have invested over US$2 billion to expand our capacity to manufacture these products.

We believe that the global community should take steps to protect all populations, including those withoutresources to protect themselves. Read about our efforts to help facilitate access to Relenza and our pandemic flu vaccine in developing countries.

Prevention and treatment � our products

Prevention

VaccinesImmediately after we received the H1N1 �swine flu � virus strain in late May 2009 we began production of avaccine that will help protect people against H1N1. We were unable to begin production before this because a vaccine needs to be based on the strain that it is acting against.

We are now in full scale production at our manufacturing facilities in Canada and Germany and are working to make the vaccine available as quickly as possible. We expect to produce several hundred million doses of the H1N1 vaccine, to be delivered from September 2009 onwards. To date, GSK has received orders for 326 million doses. The vaccine is made up of an antigen (which stimulates an immune response to the virus) and an adjuvant (which helps to boost the immune response). The use of an adjuvant should help to increase the effectiveness of the vaccine and it should also mean that less antigen will be needed to produce the same amount of vaccine1�� (avian) influenza strain, the adjuvanted vaccine demonstrated the potential to provide protection even if the influenza strain drifts (changes slightly).2,3

Delivery of the vaccine depends on gaining approval from the regulator. We are in discussion with authorities around the world to ensure the regulatory process proceeds as�� !��"��#��$%%&��'() received a European licence for a pandemic vaccine, based on a �mock-up � dossier containing data on H5N1 avian flu. We anticipate that this provisional licence will speed up registration of the H1N1 vaccine, because we can quickly supplement the data in the dossier with data on the actual H1N1 pandemic strain.

Home Responsibility Contribution to global healthPandemic flu: responding to the H1N1 outbreak

Page 48 of 336




We are currently in discussions with regulatory authorities to develop appropriate clinical development plans *�+�� The number of people studied in initial trials will be limited, because we need to provide governments with the vaccine as quickly as possible. Additional studies and ongoing monitoring will thereforebe conducted once the vaccine is launched. GSK will rapidly share results of immunogenicity and post-marketing safety and effectiveness studies with the international community.

Face masks GSK has developed Actiprotect, a face mask coated with an antiviral agent that provides a physical barrierthat prevents the wearer from inhaling virus particles and kills the flu virus within one minute of contact. Actiprotect��#��,��"��-��.��$%%/��+�� +��-�� #��shown to inactivate all influenza virus strains that it was tested against including previous strains of H1N1, H5N1, H5N9, H2N2, H3N2, and an influenza B strain.

We currently have limited manufacturing capacity for Actiprotect��0�� +*�+�� +��,existing manufacturing capacity and are also seeking additional manufacturing capability through discussion ��+��-"��

Treatment

Relenza (zanamivir) is an antiviral that shortens the duration of flu, helping sufferers to feel better sooner. GSK has been working with governments to supply Relenza for use in a pandemic since 2003, when the global spread of avian flu (H5N1) began. Clinical tests show that H1N1 is also sensitive to Relenza.

Following the outbreak of the H1N1 strain, we contacted governments around the world to establish demand for Relenza, to ensure equitable distribution of existing supplies and to put in place a series of measures to raise production levels. As a result, we now expect to increase our annual production capacity of Relenza to 190 million treatment��+��#!��*�$%%/��1�� more than threefold increase on our previous maximum annual capacity of 60 million treatment courses.

Relenza is registered in over 100 countries and we currently have contracts in place to supply it to more than 60 governments.

Supporting access to our pandemic flu products

Many developing country governments lack the resources to protect their populations against H1N1, and they are concerned about their ability to mount an effective, rapid response. GSK is committed to facilitating access to Relenza and our pandemic flu vaccine in all countries.

We strongly endorse the principles set out by the Gates Foundation to help guide global allocation ofpandemic vaccines, and we support its message that the global community should take all steps necessary to protect all populations, including those without resources to protect themselves.

We have committed to donate 50 million doses of our H1N1 vaccine and 2 million treatment courses of Relenza to the WHO for use in developing countries.

To further ensure the vaccine is available to developing countries, and subject to the yield and existingcontractual commitments, we have also allocated 20 per cent of H1N1 vaccine production capacity at our Canadian manufacturing site to developing countries. Ten per cent of our new, increased Relenza production capacity has also been allocated for developing countries. These commitments include the two donations to the WHO.

We operate a tiered-pricing policy for both our pandemic vaccine and Relenza, based on World Bank classification of countries and GAVI eligibility for the vaccine. In line with our commitments set out in March to make our branded medicines more affordable to the world's poorest people Relenza will continue to be available at not-for-profit prices to Least Developed Countries.

We remain committed to engaging in voluntary licence discussions with any companies willing to manufacture and supply zanamivir-containing products, the active ingredient in Relenza, for use in developing countries. For example, in 2006 we granted a voluntary licence to the Chinese manufacturer, Simcere, to manufacture and sell products containing zanamivir in China and a number of other countries, including all 50 of the world's Least Developed Countries.

Page 49 of 336




Ensuring business continuityWe have taken steps to ensure that during a flu pandemic we can continue to supply essential pharmaceuticals and vaccines (against influenza and other serious diseases) to patients that need them. Read more about our business continuity plans.

1. Leroux-Roels et al. Antigen sparing and cross-reactive immunity with an adjuvanted rH5N1 prototype pandemic influenza vaccine: a randomised controlled trial. Lancet 2007; 370 (9587): 580�89.

2. Leroux-Roels I et al, Broad Clade 2 Cross-Reactive Immunity Induced by an Adjuvant systemed Clade 1 rH5N1 Pandemic Influenza Vaccine PLoS ONE 3(2): e 1665. doi:10.1371/jounal.pone.0001665

3. Baras et al. Cross-protection against lethal H5N1 challenge in ferrets with an adjuvanted pandemic influenza vaccine. PLoS ONE 2008; 3 (1): e1401.

Back to top

Page 50 of 336




Corporate Responsibility Report 2008Q&AsHere we respond to questions raised by our stakeholders

Is your goal to cure disease or to find treatments for ongoing, chronic use?Ideally we want to cure disease. Our antibiotics help to treat diseases caused by bacterial infection and ouranti-parasitic medicines help prevent and treat prevalent diseases such as lymphatic filariasis and malaria.

Unfortunately, there is no known cure for most diseases. Our medicines help reduce symptoms and may need to be taken for long periods. These medicines are still valuable because they may enable the patient to have a more normal lifestyle, for example remaining in work or looking after their family. In many cases we are continuing research to find a cure.

Ideally we want to prevent a disease from occurring in the first place, which is where vaccines have an important role.

What factors do you consider when prioritising your R&D efforts?There are three main interrelated factors � science, patient need and commercial potential.

We assess scientific opportunities to determine how advances in scientific and disease understanding may lead to innovative new ways to treat or prevent disease. In 2008, we used the outcome of a systematic Therapy Area Review looking at the scientific understanding in 17 therapy areas to refocus our research effort. We continually evaluate the scientific information we obtain on our compounds to help us predict whether they can be developed into effective and well-tolerated medicines.

Assessing patient need is fundamental to R&D at GSK. This ranges from looking for medicines that will treat diseases for which there are no current effective treatments, to the development of medicines that improve on existing treatments in terms of safety, efficacy or ease of use.

Our assessment of the commercial potential of possible new treatments includes: how our product would be differentiated from those of our competitors; the size of the potential market for any new treatment; and the range of conditions it may be suitable for treating.

The better able we are to meet patient needs, the more likely it is that a product will be commercially successful. However, it is not always possible to achieve a return on investment, for example when developing treatments for diseases that are prevalent in the developing world. In some cases, where commercial potential is limited but patient need is high, we may seek ways to share the costs and risksassociated with drug development.

Are you researching drugs to treat serious diseases?Our pipeline and product range includes products against most of the major causes of mortality and morbidity (disease).

Our product launches in 2008 included Promacta for treatment of idiopathic thrombocytopenic purpura and Volibris for pulmonary arterial hypertension. Our top-selling products in 2008 treat asthma and chronic obstructive pulmonary disease, epilepsy and bipolar disorder, diabetes, herpes and migraine.

Our vaccines portfolio includes vaccines to prevent influenza, hepatitis, rotavirus and Human Papillomavirus infection which can cause cervical cancer. We also make vaccines to prevent many childhood illnesses such as measles and rubella.

How do you measure R&D productivity?The ultimate measure of our productivity is the delivery of new medicines to meet patients� needs. In 2008,

Home Responsibility Contribution to global health Q&As

Page 51 of 336




GSK launched three products based on new chemical or biological entities, six new vaccines and a number of product line extensions that benefit patients. Our target is to sustain a late-stage pipeline of around 30 key assets. However, given that research and development can take longer than ten years, we measure productivity in a number of ways during the R&D process, including:

The number of compounds in our pipeline, and the emerging risks and benefits of these compounds

Our success at progressing compounds in our pipeline through clinical trial phases l, ll and lll and to market registration

The speed of progress through our pipeline, which is an indication of the efficiency of our R&D processes

Is it true that research productivity is falling in large pharmaceutical companies? How is GSK managing this?Investment in pharmaceutical R&D has risen while the number of new medicines gaining regulatory approval has remained relatively constant or decreased. We believe there are many reasons for this, including:

An increasing focus on R&D into chronic degenerative diseases such as Alzheimer�s which are scientifically challenging, require longer clinical trials and have increased failure rates

Significant investment by industry in new technologies which will help deliver innovative medicines in the longer term, for example systems biology tools, genome-wide association scans, new in vitro and in vivo models and sophisticated imaging equipment

More extensive requirements from regulators and healthcare payers, including the need to conduct largerclinical studies to evaluate the long-term outcome of treatment with a medicine, as well as higher hurdles for approval

The effectiveness of existing treatments for some conditions, so that demonstrating improved safety orefficacy of a new treatment is increasingly difficult

Our approach is to focus on meeting patients � needs and increasing the effectiveness and efficiency of R&D. For example, in 2008 we established 35 Discovery Performance Units (DPU) within our established Centres of Excellence for Drug Discovery. DPUs are small groups of scientists focused on a specific disease or molecular pathway, and structured to be as efficient as possible. These organisations combine the entrepreneurial approach of a small company with the resources and reach of a larger organisation.

Back to top

Page 52 of 336




Corporate Responsibility Report 2008Access to medicinesAccess to healthcare is one of the world �s most pressing social challenges.

Every year millions of people in developing countries die from curable infectious diseases because they do not have access to basic healthcare services, including essential medicines. Millions more are unnecessarily exposed to the threat of ill health through inadequate or ineffective disease prevention strategies.

There are a number of complex factors that prevent access to medicines. There is often a limited prospect of a commercial return on R&D for neglected diseases; there is no unified registration system for medicines which makes the registration process costly, complex and time consuming; in many developing countries there is no distribution network for medicines and no healthcare infrastructure to treat patients and prescribe medicines. However, these problems must not be an excuse for inaction; rather they should indicate where action is most needed.

Over the last decade, the pharmaceutical industry has helped to address healthcare challenges in the developing world by researching new medicines and making them more available and affordable. Despite this progress, the scale of the healthcare crisis means that the industry must now take a more proactive approach. We have identified four key areas through which we will strengthen our approach:

1. Being more flexible on intellectual property

2. Being more flexible on pricing

3. Recognising that we achieve more in partnerships than we do alone

4. Looking at how we can move from being a supplier of medicines to being a partner in delivering solutions

Read more about our plans in these areas.

Abbas Hussain, President of Emerging Markets at GSK, leads our access efforts. These are also reviewed by the Corporate Executive Team, GSK�s most senior team, and by the Corporate Responsibility Committee of the Board.

Increasing access to medicines is important to our business for ethical, reputational and commercial reasons because:

It is morally the right thing to do and is valued by our shareholders, employees and other stakeholders. It is aligned to our corporate mission and contributes to GSK�s reputation and ability to attract and retain talented employees

Our business objective is to increase the proportion of the world�s population that has access to our medicines � currently around 20 per cent. The successful pharmaceutical companies of the future will serve a bigger proportion of the world�s population

Our business relies on the intellectual property (IP) rights system which encourages medical innovation and progress. By taking measures to counter claims that IP is a major barrier to access, and by looking for ways to improve availability and affordability, we can help to increase access while maintaining support for intellectual property rights in our key business areas

The access problem is not confined to the developing world. For example, in the US many people suffer unnecessary ill health because they do not have healthcare insurance.

Home Responsibility Access to medicines

Page 53 of 336




Our community investment programmes provide an additional resource for addressing healthcare challenges around the world. They support under-served communities through funding, education, practical support and donations.

We are always looking to refine and improve our contribution to improving access to medicines and in 2009 our CEO Andrew Witty announced a number of new approaches that we will be pursuing.

2I believe the pharmaceutical industry has a huge role to play. But we need to take much more of a leadership role. Historically we have always reacted to problems. In the future I want us to be proactive, genuinely finding new ways to increase research, increase access and eradicate disease. 3

Andrew Witty, CEO (Speech at Carter Center, Atlanta, 4 December 2008)

Highlights

Announced new approaches to increase flexibility in pricing in Least Developed Countries and intellectual property relating to neglected diseasesIdentified as the industry leader in the first Access to Medicines IndexSuccessful results reported from phase ll clinical trials of RTS,S, our malaria vaccine candidate for African childrenEntered into new R&D partnership with the Drugs for Neglected Diseases initiativeNot-for-profit prices for anti-retrovirals reducedPositive opinion received from the European Medicines Agency for our pneumococcal vaccine349 million anti-retroviral tablets supplied to developing countries including 279 million tablets supplied by generic manufacturers licensed by GSK1.1 billion vaccines shipped, of which almost 80 per cent went to the developing world.Restructured our commercial operations to reflect the needs of patients and business opportunities in emerging marketsEntered into new partnerships and acquisitions to develop a more relevant product portfolio

Page 54 of 336




Corporate Responsibility Report 2008Our approach and contributionGSK is committed to playing our full part in addressing healthcare challenges around the world. Our core business activity, developing and launching new medicines and vaccines, makes a significant contribution.

We recognise that the scale of these challenges requires a coordinated approach and we are looking to expand research partnerships with governments, NGOs and other companies. While support for intellectual property rights is essential to encourage innovation, we want to find ways that we can use our intellectual property flexibly to speed up the development of medicines for neglected diseases, without compromising the sustainability of our business.

There is only so much difference that our activities on R&D, pricing and working in partnerships can make while significant barriers to access remain in developing countries. Key among these barriers is the lack of healthcare infrastructure - both physical and human. Although we are not a health service provider, we want to work with others to deliver healthcare, which can include investing in infrastructure. We will seek newopportunities in this area and are already making a contribution in strengthening infrastructure.

For example in 2008 we donated equipment for a state-of�the-art laboratory at the Lagos State University College of Medicine. Professor Clement Adebamowo, Chairman of the National Health Research Ethics Committee of Nigeria, said that the new laboratory would help Nigeria regain lost ground on health research and reclaim its position as a reputable partner in education and health research.

Playing our part to address global healthcare challenges, both individually and through partnership, is not only the right thing to do, it also makes good business sense.

We work to address global healthcare challenges through action in four areas:

Improving affordability by preferential pricing of our medicines and tiered pricing of our vaccines in the world �s poorest countries, exploring new business models in middle-income countries, and providing discount cards in developed countriesInvesting in research and development that targets diseases affecting the developing worldWorking in partnerships to research new medicines and to help deliver healthcare servicesUndertaking community investment activities and partnerships that foster effective healthcare

We recognise that the developing world in particular poses many healthcare challenges. This requires a long-term commitment. Fundamental to our approach is the need to ensure that our contribution is sustainable and is built into the way we do business.

We have a duty to try to ensure our products are used in a clinically appropriate way in all countries where they are available. This is particularly important in the case of communicable diseases, where inappropriate use of products can speed the development of resistance to treatment.

Our activities are undertaken in partnership with organisations that have relevant specialist knowledge, such as governments, international agencies, charities, other private sector organisations and academic institutions.

GSK was ranked top in the first Access to Medicines Index, published in June 2008. The Index rates companies on their performance according to eight criteria: management, influence, research and development, patenting, capacity, pricing, drug donations and philanthropy. While we retain some concerns with the methodology used in this report, we are pleased that our multi-faceted efforts to make our medicines

Home Responsibility Access to medicines Our approach and contribution

Page 55 of 336




more available have been recognised by the Index. This is testament to our innovative and sustainableapproach, and the many GSK employees who contribute to our efforts to help address healthcare challenges in the developing world.

Page 56 of 336




Corporate Responsibility Report 2008The role of othersImproving access to healthcare in developing countries is a complex challenge.

We believe that only a holistic approach embracing prevention and treatment as well as fundamentally strengthening health systems will work. This will require all stakeholders, including the pharmaceutical industry, to work together to increase the resources dedicated to improving healthcare systems.

Pharmaceutical companies, including GSK, must make their medicines as affordable as possible to people in the world�s poorest countries, in a sustainable manner. We must invest in research into diseases of the developing world because new prevention tools and treatments are urgently needed. Companies must look for ways to use intellectual property rights flexibly to maximise R&D resources for neglected diseases. Rather than just being suppliers of medicines, we must also support governments in their efforts to strengthen health systems, developing innovative ways to deliver our medicines to the people who need them most.

Wealthy nations must give more. New funding is coming from the Global Fund to Fight AIDS, TB and Malaria, the Bill & Melinda Gates Foundation, PEPFAR (The US President �s Emergency Plan for Aids Relief), UNITAID and others, but funds are still inadequate and need to be more predictable and sustainable.

Resources are needed to fund research, strengthen health systems, purchase medicines, support disease prevention and discourage the migration of trained healthcare workers from developing countries. The current global financial crisis must not divert resources away from assisting developing countries.

Developing countries themselves must show genuine political commitment to prioritising healthcare in national budgets, addressing stigma and improving affordability by removing import tariffs on medicines.

As part of this approach, middle-income countries must accept their responsibilities and not seek the lowest prices that are offered to the world �s poorest countries.

All countries should provide an environment that encourages innovation through support for intellectualproperty (IP) rights, and should avoid measures such as widespread compulsory licensing which may negatively impact on investment in R&D and innovation. A more supportive environment for IP generally will encourage companies to be more flexible with their IP and less defensive. Countries should also address the risk of product diversion from patients in poor countries to those in wealthier ones.

We lobby governments and policy makers to advocate a sustainable approach to improving healthcare in the developing world. Such an approach must support innovation, which is critical to improving access in the longer term. In 2008 our work in this area included:

Urging the G8 to continue making healthcare in the developing world a major agenda item

Supporting the development of a pilot Advance Market Commitment for a pneumococcal vaccine

Engaging in the work of the WHO�s Intergovernmental Working Group (IGWG) on Public Health, Innovationand Intellectual Property

Working with the UK government on global health issues and in the development of the Department for International Development�s (DFID�s) Medicines Transparency Alliance (MeTA) and the review of its GoodPractice Framework for pharmaceutical companies

Playing a leading role in Pharma Futures 3, an industry dialogue exploring the links between sustainable pharmaceutical business models and improved health outcomes in middle-income markets, including

Home Responsibility Access to medicines The role of others

Page 57 of 336




China, India and Brazil

Discussing IP, innovation and funding with NGOs, foundations and other stakeholders

Attending WHO Executive Board Meetings and the World Health Assembly

Meeting with the UN Secretary General, Ban Ki Moon, to discuss priorities in addressing HIV/AIDS

Contributing to the design of an Affordable Medicines Facility for Malaria

Playing a leading role in major global health initiatives. For example GSK sits on the Boards of the GAVI Alliance and Roll Back Malaria

Participating in Board meetings of the Global Fund to Fight AIDS, TB and Malaria and supporting thedevelopment of its Quality Assurance standards

Contributing to development of UN Human Rights Guidelines for Pharmaceutical Companies in relation to access to medicines

Engaging in the negotiations on the WTO Doha Round to seek sustainable pro-innovation outcomes

Addressing HIV/AIDS in the EU and neighbouring countries through the European Commission�s BremenProcess

Engaging with the Intergovernmental Meeting on Pandemic Influenza Preparedness

Contributed to a report being prepared by Paul Hunt, the UN Special Rapporteur on the Right to Health. The report is on GSK�s approach to access to medicines. A number of senior executives, including our formerCEO, Dr JP Garnier, and our Chairman Sir Christopher Gent, were interviewed. We expect the report to be published in the first half of 2009.

Read more about our malaria advocacy.

Page 58 of 336




Corporate Responsibility Report 2008Developing countriesPoverty is the underlying cause of the healthcare crisis in many parts of the developing world. In the world�spoorest countries, millions of people do not have reliable access to food and clean water, never mind adequate healthcare services.

The healthcare crisis in the developing world is complex, and only a holistic approach will work to improve the situation. This must involve a comprehensive programme of prevention, health education, screening diagnosis and treatment, community care and support. Increasing access to medicines also plays a vital part. In all of these areas, GSK seeks opportunities to make a contribution.

Significant additional funding from national and international sources must be mobilised to really make a difference. The WHO recommends a minimum spend on health of �17 per person per year to provide the most basic health services. Yet the average spend in sub-Saharan Africa is just �5, according to the UK�sDepartment for International Development. The African Region of the WHO suffers more than 24 per cent of the global burden of disease, but has only three per cent of the world �s health workers.

The pharmaceutical industry must look to form partnerships to help deliver healthcare services. Political will is needed to aid development and build healthcare infrastructure.

GSK can make an important contribution by:

Researching new treatments and vaccines for diseases affecting developing countries

Registering our products in the countries where they are needed most

Offering preferential pricing arrangements for medicines and tiered pricing for vaccines that are needed most

Seeking innovative partnerships to help improve healthcare in the developing world

Granting voluntary licences to allow companies to manufacture our medicines

Investing in projects to support healthcare delivery in under-served communities

Diseases disproportionately affecting developing countries

Malaria kills over a million people a year, mostly children under five years oldAround two billion people worldwide are infected with TB and over 1.5 million people die from the disease each year. No new treatments for TB have been developed in the last 40 yearsUNAIDS estimates that HIV/AIDS-related illnesses killed two million people in 2007 and that over 33 million people worldwide are living with HIVWorldwide a woman dies of cervical cancer every two minutes; 85 per cent of these are in the developing worldRotavirus infection causes 600,000 deaths each year, mostly in children under two years of age. Up to 85 per cent of these deaths occur in low-income countries

Home Responsibility Access to medicines Developing countries

Page 59 of 336




Corporate Responsibility Report 2008Research and developmentFor some diseases affecting developing countries there are no effective treatments. In other cases, treatments exist but have become less effective due to drug resistance.

Sometimes treatments are not suitable, for example, because they are difficult to administer in areas with poor healthcare infrastructure or they are too expensive. As a research-based company, we aim to make a major contribution to health in developing countries by researching and developing affordable new vaccines and treatments for infectious diseases. We are currently conducting R&D into 12 diseases of particular relevance to the developing world: bacterial meningitis, chlamydia, dengue fever, hepatitis E, HIV/AIDS, leishmaniasis, malaria, pandemic flu, pneumococcal disease, Chagas disease, human African trypanosomiasis and TB. For more information on our R&D pipeline see our Annual Report.

Biomedical R&D is a costly, risky and time consuming activity. To develop one successful medicine or vaccine it can typically take 10 to 12 years and, on average, including the costs of failures, costs around $1.2 billion1. For every 5,000 to 10,000 compounds tested, an estimated five reach clinical trials and only one reaches the market2.

What�s different about R&D for medicines for the developing world?

GSK scientists working on treatment projects for diseases of the developing world (DDW) make access to medicines a priority right from the start of the R&D process.

When researching a new DDW treatment we emphasise factors such as:

Heat and humidity resistance � the product must be able to survive in a hot climate where there may not be refrigeration facilitiesEase of use � it must be easy to use in settings where there are limited healthcare facilities. For example, once-a-day tablets that can be taken at home are preferable to an injectable medicine that must be administered in a hospital or clinicAffordability � price is one of the most important factors. We look for molecules and formulations that are straightforward to manufacture and therefore inexpensive to produce

For diseases which disproportionately affect the developing world, but where a market exists in developed countries such as HIV/AIDS, we can still pursue this business model. We will accept all the R&D costs and risks involved on the expectation that there will be a market in wealthy countries that can subsidise poorer ones.

For other diseases of the developing world where no such market exists we have to pursue new ways of working. One solution is the public-private partnership (PPP) model, in which businesses and the public sector work together. The model enables collaborators to achieve more together than they would do alone. We are also exploring ways to share knowledge with other organisations to help facilitate and speed up the discovery and development of new medicines. By being more flexible with our intellectual property, we aim to encourage other pharmaceutical companies to follow suit.

We believe GSK is currently the only company researching new vaccines and treatments for all three of the WHO �s priority infectious diseases, malaria, TB and HIV/AIDS. We also have an extensive portfolio of R&D projects for diseases of the developing world. We are an industry leader in research into HIV/AIDS treatment, and are currently evaluating multiple second-generation integrase inhibitors in clinical development.

Home Responsibility Access to medicine Developing countries Research and development

Page 60 of 336




We also look for new treatments for other neglected diseases, typically in collaboration with external partners. For example, we engage in ongoing R&D programmes in leishmaniasis, Chagas disease and human African trypanosomiasis (African sleeping sickness).

We have created a dedicated group to focus on diseases of the developing world which is fully integrated into our pharmaceutical R&D organisation. This group prioritises projects based on their socio-economic and public health benefit rather than on commercial returns. In addition to scientists based in the UK and US, this includes a drug discovery centre at our Tres Cantos R&D site in Spain where over 100 scientists focus primarily on malaria and TB. Half of these scientists are funded by PPPs, the Medicines for Malaria Venture and TB Alliance. A group focused on developing world diseases is also active in our vaccines organisation in Belgium.

We are looking at ways to expand the Tres Cantos site into a global centre of excellence by encouraging investment and collaboration from governments, NGOs and other companies. Our overriding objective is to ensure that GSK makes the best possible contribution to improving the health of those affected by neglected diseases of the developing world. This will be achieved by pursuing an approach that will lead to the most extensive, effective and sustainable pipeline for diseases of the developing world (DDW) by:

Increasing partnerships with external DDW communities to cover more neglected diseases, more diverse expertise, research tools, novel targets, developable drug candidates and worldwide talent pool including strong links with the best academic groups

Spreading the DDW remits and learning in developing countries and emerging markets by sharing training activities and science forums for researchers or upcoming scientists from these countries, while avoiding any brain drain downsides

Strengthening current R&D partnerships with organisations such as with Medicines for Malaria Venture (MMV), TB Alliance, Drugs for Neglected Diseases Initiative (DNDi), International AIDS Vaccine Initiative (IAVI), PATH, Malaria Vaccine Initiative (MVI) and the Aeras Global TB Vaccine Foundation, as well as seeking new partnerships

Read our positions statements on:

Clinical trials in the developing world

Paediatric medicines

Briefing: The treatment of children living with HIV in developing countries

1. Tufts Center for the Study of Drug Development

2. Pharmaceutical Industry Profile 2008, Washington DC, PhRMA March 2008

Page 61 of 336





MalariaWe have been working on a malaria vaccine for over 20 years and have invested more than $300 million of our own resources to date. We are currently developing a candidate malaria vaccine, RTS,S, in partnership with the PATH Malaria Vaccine Initiative (MVI), which has contributed more than $100 million.

In 2008, results of two separate phase ll trials confirmed the findings of earlier studies that the candidate vaccine provides infants and young children, the most vulnerable groups, with significant protection against malaria. In children aged five to 17 months, the RTS,S/AS01 vaccine reduced the risk of clinical episodes of malaria by 53 per cent over an eight-month period1. In the other trial, among infants under 12 months who received three doses of a modified RTS,S/AS02 vaccine, the risk of first infection from malaria was reduced by 65 per cent over a six- month period2.

Trials also showed that the RTS,S/AS02 vaccine does not interfere with the efficacy of other vaccines administered through existing African national immunisation programmes. This means that in countries where malaria is most prevalent, the vaccine could be delivered through the current immunisation schedule for infants, called the WHO Expanded Program on Immunization (EPI).

Christian Loucq, MVI Director, commented on the significance of the trial results by saying, 2we are closer than ever before to developing a malaria vaccine for children in Africa3.

In 2009 we will commence large-scale phase lll vaccine efficacy trials in seven African countries across 11 sites. If these trials confirm the safety and efficacy of the candidate vaccine, it could be filed for registration in 2011 and introduced as early as 2012 for children five to 17 months of age. It will take longer to establish efficacy in infants of EPI age (six weeks old) due to the complexity of enrolment for trials, so the earliest the vaccine could be fully available following approval for use in infants is 2014.

Read more in the malaria vaccine case study.

Update August 2009

The Phase III trial of the RTS,S malaria vaccine candidate started in Bagamoyo, Tanzania, in May 2009.

Our work on malaria treatments includes:

Tafenoquine, a potential new treatment for the radical cure of P. vivax malaria being developed in partnership with the Medicines for Malaria Venture (MMV). As well as causing an acute infection of red blood cells, P. vivax causes a dormant infection of liver cells from which the parasites can reactivate, resulting in a reappearance of parasites in the blood and a recurrence of malaria. A radical cure implies the complete elimination of malaria parasites from the body, including the dormant liver stages.

Tafenoquine offers the potential for a one to two day treatment course and could replace primaquine as the standard of care for a P. vivax radical cure. An initial study, commencing in 2009, will focus on further understanding the safety of tafenoquine in subjects with inherited glucose-6-phosphate dehydrogenase (G6PD) deficiency.

2Tafenoquine is a novel inclusion for MMV �s portfolio. Given its activity against the liver stages of malaria, or hypnozoites, it is an essential part of the fight against P. vivax infections. As the malaria elimination agenda moves forwards we need an increasing array of tools against the parasite,3 said Dr Timothy Wells, Chief

Home Responsibility Access to medicine Developing countries Research and developmentMalaria

Page 62 of 336




Scientific Officer at the Medicines for Malaria Venture. "MMV and GSK have worked successfully on a number of malaria projects in the past. Together, we hope to develop a radical cure for P. vivax malaria3.

Pyridones, a new class of compounds with the potential to be highly effective against drug-sensitive and drug-resistant strains of both P. falciparum and P. vivax malaria. Pyridone GSK932121 is being developed in partnership with MMV. We entered �first time in human� clinical trials early in 2009. A back-up programme included in the GSK/MMV agreement is now well advanced and a candidate for development is expected by mid-2009

Isoquine, a new 4-aminoquinoline compound. The �first time in human� clinical trial was completed in 2008. Based on advice from the MMV Expert Scientific Advisory Committee and following discussions with all three partners (GSK, University of Liverpool and MMV), the isoquine project has been terminated until such time as evidence can be provided to demonstrate that adequate therapeutic blood exposures can be achieved after an acceptable oral dosage

1. Bejon P, Lusingu J, Olotu A, et al. Efficacy of RTS,S/AS01E : clinical malaria in 5 to 17 month old children. N Engl J Med 2008;359:

2. Abdulla S, Oberholzer R, Juma O, et al. Safety and immunogenicity of RTS,S/AS02D malaria vaccine in infants. N Engl J Med 2008;359:2533-44.

3. GSK press release issued 29 February 2008

Dacart and Lapdap

As reported in the 2007 corporate responsibility report, early in 2008 GSK and Medicines for Malaria Venture (MMV) received data from two phase lll clinical trials assessing use of the artemisinin-basedcombination therapy Dacart we were developing together.

One trial was primarily designed to establish the efficacy of Dacart versus Coartem4, currently the first-line anti-malarial therapy in many endemic countries. The second trial was designed to establish the efficacy of Dacart versus Lapdap (chlorproguanil and dapsone), another anti-malarial product GSK had developed in a partnership including the World Health Organization and the UK�s Department for International Development3.

A key safety finding from these trials was that patients with glucose-6-phosphate dehydrogenase (G6PD) deficiency were found to be more at risk of anaemia after taking either Dacart or Lapdap. Consequently, given the haematological profile of Dacart, and the fact that 10-25 per cent of the population in sub-Saharan Africa is G6PD deficient, GSK and MMV decided to terminate the further development of Dacart.For the same reasons, GSK also decided to withdraw Lapdap from the market.

This disappointment highlights the highly risky and complex nature of pharmaceutical research and development. However, GSK remains committed to working with partners such as MMV to seek solutions for patients suffering from this devastating disease.


TuberculosisOur tuberculosis medicines research is conducted in partnership with the Global Alliance for TB Drug Development (TB Alliance). In January 2008 we announced a renewal, for a further three years, of our joint research programme with the TB Alliance.

Home Responsibility Access to medicine Developing countries Research and developmentTuberculosis

Page 63 of 336




Speaking at the time of the announcement, Dr Mel Spigelman, TB Alliance Director of Research and Development, said: 3We are encouraged by the success of our pioneering work with GSK, which has nearly doubled the number of TB drug discovery projects in our pipeline. This collaboration is advancing the TB Alliance �s mission to develop revolutionary, faster and better TB treatment regimens by exploring new ways to attack the disease3.

Our lead TB project on mycobacterium gyrase inhibitors expects to select a candidate for development by mid 2009. Other TB partnership projects under way include:

Research into biomarkers. Currently, the effectiveness of a new TB drug cannot be determined until 18-24months after completion of treatment. Biomarkers that enable us to predict at an early stage how patients are responding could significantly speed up TB research

Mtb72f is our TB candidate vaccine being developed with the Aeras Global TB Vaccine Foundation. Early results are positive, suggesting that the vaccine is safe and produces a strong immune reaction in adults in TB endemic regions. Trials are now planned for infants in TB endemic regions.

Page 64 of 336




Corporate Responsibility Report 2008HIV/AIDSWe have been involved in AIDS vaccine research for over two decades. GSK is also committed to the development of new molecules that target unmet medical needs in HIV, and there is a pressing need for a variety of new anti-HIV drugs with novel mechanisms of action.

VaccinesWe are now pursuing three separate vaccine strategies. A successful AIDS vaccine might combine several of these approaches:

Recombinant measles vector � the measles vaccine is one of the most powerful, providing life-longprotection against the disease. We are working with the Pasteur Institute in Paris to develop an AIDS vaccine by fusing genes from the HIV virus onto a measles vaccine

F4co, our own candidate vaccine, will advance into phase l/ll trials in HIV-infected subjects in 2009

An extramural collaborative discovery R&D programme that aims to identify an HIV envelope-based protein vaccine capable of producing broadly neutralising antibodies against HIV infection

In addition, we continue to collaborate with the International AIDS Vaccine Initiative (IAVI) and during 2009 we will be evaluating modifications to our joint programme.

TreatmentsGSK is committed to the development of new molecules that target unmet medical needs in HIV, and there is a pressing need for a variety of new anti-HIV drugs with novel mechanisms of action. Integrase inhibitors represent an important new class of compounds for the treatment of HIV, and it is increasingly clear that second-generation integrase inhibitors will be needed to address issues such as drug resistance and dosing complexity. We currently have a number of second-generation integrase inhibitors in the early stages of clinical development.

In February 2009 we announced a licence agreement with Idenix Pharmaceuticals Inc. granting GSK exclusive worldwide rights to IDX899. This is a novel non-nucleoside reverse transcriptase inhibitor (NNRTI) in phase ll clinical development being developed by Idenix for the treatment of HIV/AIDS. New NNRTIs are needed to address the increasing prevalence of viral resistance and side effects associated with this drug class. To date, IDX899 has demonstrated high potency with low milligram doses, a high barrier to drug resistance, favourable risk/benefit profile and the convenience of once-a-day administration.

In 2007, there were 2.5 million children living with HIV worldwide � nearly 90 per cent of them in sub-SaharanAfrica. We are committed to improving the treatment for children living with HIV/AIDS by developing products designed for use in children and developing scored tablets that simplify treatment.

Scored tablets enable our anti-retrovirals (ARVs) to be broken into two smaller doses which simplifies treatment for children. WHO and UNICEF have stated that access to a tablet form of ARVs could improve treatment options for children able to swallow tablets. Tablets are often easier to store and distribute, and also less complicated to administer than the liquid formulations currently available � particularly when two or three medicines are combined in one pill.

In 2007 we gained approval from the European Commission for new scored tablets for Epivir, Combivir and Ziagen. This will enable children above 14 kilograms weight to benefit from a solid dosage form. In 2008 we received approvals for Epivir and Ziagen scored tablets from the US Food and Drug Administration and in

Home Responsibility Access to medicine Developing countries Research and developmentHIV/AIDS

Page 65 of 336




February 2009 the FDA approved the scored version of Combivir.

The new tablets can make treatment easier for children. For example, a child weighing 20 kilograms can now take half a tablet of Combivir in the morning and the second half in the evening in combination with another ARV, instead of requiring 8 ml of Epivir solution twice a day plus 12 ml of Retrovir solution three times daily.

We have also committed to support four paediatric clinical studies in resource-poor countries to determine the best ways to expand access to HIV/AIDS treatment.

Through our International HIV Collaborative Research Trials (CRT) Programme for resource-poor settings, we are supporting clinical trials that are sponsored by external organisations such as the WHO, the UK�sMedical Research Council and the US National Institutes of Health (NIH).

At the end of 2008, 20 trials were under way and a further three planned involving approximately 32,500 patients. Nineteen of the trials are conducted at sites in Africa. These CRTs focus predominantly on public health-related issues in the developing world, such as prevention of mother-to-child HIV transmission, paediatric treatments strategies and HIV-TB co-infection. GSK donates study anti-retrovirals and/or financial support, and also provides scientific input.

Countries in which HIV CRT studies are being conducted include:

African countries Asia and Latin America countries

South Africa UgandaZimbabweKenyaBotswanaZambiaTanzaniaMalawiEthiopiaMaliNigeria

IndiaThailandCambodiaVietnamBrazilHaitiPeruArgentina

Page 66 of 336




Corporate Responsibility Report 2008Visceral leishmaniasis (VL)Sitamaquine is our oral, once-a-day candidate treatment for visceral leishmaniasis (VL), a potentially fatal disease spread by parasites. Data from two phase ll proof-of-concept studies in Kenya and India are encouraging overall. After a 28-day course, 85 per cent of patients remained cured at six months1 2.

Sitamaquine was generally well tolerated by patients in these studies. However, there were some concerns regarding renal adverse events seen in a few subjects, some of which appear to be treatment related.

Interpretation of these data is complicated, in particular because VL itself is associated with renal impairment. Before proceeding to phase lll trials, we set up a phase llb study3 to compare the safety and tolerability of a 21-day course of sitamaquine with that of intravenous amphotericin B.

Early results showed comparable efficacy to previous studies, despite the shorter course, and sitamaquine was very much better tolerated than amphotericin. A small number of patients had mild, reversible renal side effects.

We are currently reviewing the utility of sitamaquine as a potential treatment for VL with regulatory authorities and external stakeholders.

1. Wasunna M, Rashid JR, Mbui J et al. A Phase II dose-increasing study of sitamaquine for the treatment of visceral leishmaniasis in Kenya. Am J. Trop. Med. Hyg. 73(5):2005:871-876

2. Jha TK, Sundar S, Thakur CP et al. A Phase II dose-ranging study of sitamaquine for the treatment of visceral leishmaniasis in India. Am J. Trop. Med. Hyg. 73(6):2005:1005-1011

3. Prasad LS, Sen S, Ganguly. Renal involvement in kala-azar. Indian J. Med Res 1992 Jan:95;43-46 - Dutra M, Martinelli R, de Carvalho EM et al. Renal involvement in visceral leishmaniasis. Am. J. Kidney Dis. 1985:(6); 22-27

Home Responsibility Access to medicine Developing countries Research and developmentVisceral leishmaniasis

Page 67 of 336




Corporate Responsibility Report 2008Pneumococcal diseasePneumococcal disease is a global health issue. Each year, Streptococcus pneumoniae infections are estimated to kill one million children under five years of age worldwide. There are more than 90 distinct strains (serotypes) of pneumococcus but only 10-15 cause the vast majority of invasive disease in young children.

In January 2009, the European Medicines Agency �s Committee for Medicinal Products for Human Use issued a positive opinion and recommended approval of GSK �s paediatric pneumococcal candidate vaccineSynflorix. The paediatric vaccine is proposed to be indicated for active immunisation against invasive pneumococcal disease and middle ear infections (acute otitis media) caused by S.pneumoniae in infants and children from six weeks up to two years. The European Marketing Authorisation for the vaccine is expected to be granted in the first half of 2009.

We submitted a file for this potentially life-saving candidate vaccine to the World Health Organization for prequalification in early 2008. Prequalification is a service provided by the WHO to facilitate access to medicines in less affluent countries.

We have also been in discussions with the Global Alliance for Vaccines and Immunization to accelerate the availability of funding for pneumococcal vaccination through the pilot Advance Market Commitment (AMC) mechanism. AMCs are a new approach to public health funding designed to stimulate the development and manufacture of vaccines for developing countries. Donors commit money to guarantee the price of vaccines once they have been developed, thus creating the potential for a viable future market.

Home Responsibility Access to medicine Developing countries Research and developmentPneumococcal disease

Page 68 of 336




Corporate Responsibility Report 2008Neglected diseasesIn March 2008, we announced a collaborative research effort with the not-for-profit organisation, Drugs for Neglected Diseases initiative (DNDi), targeting neglected tropical diseases which disproportionately affect the developing world. Research will focus on compounds that may have activity against the most neglected diseases, including visceral leishmaniasis (kala azar), human African trypanosomiasis (sleeping sickness) and Chagas disease.

The collaboration, which has been established for an initial period of two years and may be extended, will focus on identifying and developing compounds from existing GSK programmes and will leverage the expertise of researchers from GSK at our Tres Cantos facility along with leading academic centres like the London School of Hygiene & Tropical Medicine.

The collaboration has been formed to specifically address unmet patient needs as current treatments for these diseases have significant drawbacks, such as difficulty of administration, severe side effects, length of treatment, cost, and emerging parasitic resistance.

Home Responsibility Access to medicine Developing countries Research and developmentNeglected diseases

Page 69 of 336




Corporate Responsibility Report 2008Our plansIn 2009 we plan to:

conduct a large-scale phase lll malaria vaccine efficacy trial in seven African countries

commence a study focusing on further understanding the safety of tafenoquine in subjects with inherited glucose-6-phosphate dehydrogenase (G6PD) deficiency

select a candidate for our lead TB project on mycobacterium gyrase inhibitors development by mid-2009

initiate trails of our candidate TB vaccines in infants

continue clinical development of multiple second-generation integrase inhibitors for HIV/AIDS

enter �first time in human� clinical trials on pyridone932121, an anti-malarial being developed in partnershipwith MMV (this was achieved in January 2009), and select a back up candidate for development by mid-2009

review the utility of sitamaquine as a potential treatment for VL with regulatory authorities and externalstakeholders.

Pandemic fluIf it happens, an influenza pandemic could have a devastating effect, particularly on the poorest countries that have the least resources and capacity to prepare. GSK is very active in global preparations related to pandemic flu.

Read more about how we are helping countries prepare for pandemic flu.

Home Responsibility Access to medicine Developing countries Research and developmentOur plans

Page 70 of 336




Corporate Responsibility Report 2008Public-private partnershipsGSK must remain profitable to sustain our business and to provide funds to enable us to continue to develop new medicines and vaccines. There is often limited prospect of a commercial return on R&D into diseases of the developing world. Public-private partnership (PPPs) enable R&D into these diseases by making this work commercially viable by sharing the risks and costs involved. PPPs speed up the R&D process and enable all partners to do more than they could do on their own.

In a PPP companies such as GSK provide the R&D, technology, manufacturing and distribution expertise. Academic institutions may also provide research and disease area knowledge. Public sector partners, governments and organisations such as the Bill & Melinda Gates Foundation help fund the development and delivery costs and ensure that medicines and vaccines get to the people who need them. Funds are usually channelled through organisations such as the Medicines for Malaria Venture (MMV) which also help to coordinate global R&D activity.

PPPs can work in many different ways. For example, some of our partnerships are centred around our dedicated �diseases of the developing world� discovery centre at Tres Cantos and our global vaccines business headquartered in Belgium. GSK provides the facilities for medicinal drug discovery and meets all the running costs. Of the 100 scientists at Tres Cantos, half are subsidised by our partner organisations, MMV and the Global Alliance for TB Drug Development.

As compounds move into clinical development, GSK provides the clinical, regulatory and manufacturing expertise and resources through our global R&D and supply network. Partners help fund the cost of running clinical trials and address issues of access and distribution.

This reduces the costs of development and gets new products to patients faster. Research programmes are overseen by joint steering committees with representatives from GSK and our partners.

Under the terms of our agreements, all new treatments resulting from PPPs are made available to disease-endemic countries at affordable prices.

Accelerating Access Initiative

The Accelerating Access Initiative (AAI) is a public-private partnership to accelerate access to care and treatment for HIV/AIDS.

GSK is a founder member of the AAI, formed in May 2000. The AAI is a partnership between UNAIDS, the WHO, the World Bank, UNICEF and UNFPA, and nine research-based pharmaceutical companies -Abbott Laboratories, Boehringer Ingelheim, Bristol-Myers Squibb, Gilead Sciences, GlaxoSmithKline, Johnson & Johnson, Merck and Co, Inc, Pfizer and Roche.

The objectives of the AAI are to:

accelerate sustained access and increase use of appropriate, good quality interventions for the prevention/treatment of HIV/AIDSensure that care and treatment reach significantly greater numbers of people in need, through new alliances involving committed governments, private industry, the UN, development assistance agencies, non-governmental organisations and people living with HIV/AIDS

A report from the Accelerating Access Initiative suggests that by December 2007, around 875,000 patients in developing countries were receiving at least one ARV treatment supplied by the nine R&D-based pharmaceutical companies in the AAI. In the two years since December 2005, the total number of

Home Responsibility Access to medicine Developing countries Public-private partnerships

Page 71 of 336




patients in developing countries receiving treatment from the AAI companies had increased by 22 per cent. In Africa alone, over 665,600 patients are being treated with at least one ARV supplied by the AAI companies, an increase of 49 per cent over two years. This has resulted in an over 70-fold increase in the number of people being treated with medicines supplied by the AAI companies in Africa since the establishment of the AAI in May 2000.

Page 72 of 336




Corporate Responsibility Report 2008Product registrations

Rapid product registration is important to ensure new medicines reach patients as quickly as possible. But the regulatory process is complex, costly and time consuming. There is little regulatory harmonisation around the world and a distinct submission is required for virtually every country. Companies have to prioritise their regulatory resources. This has led to concerns that pharmaceutical companies are not doing enough to register essential medicines in developing countries, which prevents these countries from taking advantage of preferential pricing offers.

We prioritise registration of our medicines based on commercial considerations, as well as prevalence of disease. We use mechanisms such as the European Medicines Agency (EMEA), Article 58, to help facilitate product registration in developing countries. Article 58 allows the Agency's Committee for Medicinal Products for Human Use (CHMP) to give opinions, in cooperation with the World Health Organization, on medicinal products for human use that are intended exclusively for markets outside the EU, such as medicines to treat malaria or leishmaniasis. The positive opinion obtained via Article 58 can then be used to support the registration process in developing countries when conducting their own regulatory reviews.

We regularly review the registration status of our key anti-retrovirals (ARVs) to prioritise registration based on the needs for ARVs. This helps to make Epivir, Retrovir, Combivir and Ziagen available as widely as necessary and possible.

Screening and vaccination could prevent many thousands of women from getting cervical cancer. We are working to register our vaccine against Human Papillomavirus (HPV), Cervarix, as widely as possible so that women can be better protected from the disease. It is now available in more than 90 high-, middle- and low-income countries around the world, and GSK is committed to doing what it can to accelerate global access to the vaccine. Read more about our position on cervical cancer prevention.

Home Responsibility Access to medicine Developing countries Product registrations

Approach Performance and plans

Page 73 of 336




Corporate Responsibility Report 2008Product registrations

Cervical cancer and rotavirusIn October 2007 we submitted Cervarix, our vaccine which helps to prevent infection with HPV, to the World Health Organization (WHO) for pre-qualification. Products with pre-qualification status may be used by UN agencies and the GAVI Alliance, as well as in mass vaccination programmes across the developing world. By submitting Cervarix for prequalification as early as possible, we are working to eliminate the historical 15-20 year delay for new vaccines to become available in developing countries. We anticipate pre-qualification in the first half of 2009.

Early in 2007, we received pre-qualification status for our rotavirus vaccine, Rotarix, from the WHO. We concluded a deal with Brazilian government institute Fiocruz to supply enough Rotarix to protect every baby in Brazil against rotavirus for the next five years. This includes a technology transfer agreement under which Fiocruz will produce Rotarix for the domestic market and manufacture Rotarix for GSK under contract for export to other developing countries. This is similar to existing arrangements in Brazil for our oral polio vaccine, Haemophilus influenzae type b (Hib) vaccine and measles, mumps and rubella vaccine. The results of this approach with Rotarix in Brazil have been impressive.

HIV/AIDSGSK produces packs of ARVs specifically designed for and distributed in developing countries. These �access � packs of Combivir, Epivir tablets, Epivir solution and Trizivir are now registered in at least 33 countries. This means that these products are available for sale in over 50 of our target 64 countries, including those countries which do not have formal regulatory approval processes. Our second-line ARV, Ziagen, is formally registered in tablet form in 28 countries and as oral solution in 23 of our target 64 countries. Ziagen access packs are registered in some of these countries and we are in the process of seeking registration in the others.

FluTo support government preparations for a global flu pandemic, we have registered Relenza in more than 100 countries. Relenza is our anti-viral medicine which can help treat influenza.

Home Responsibility Access to medicine Developing countries Product registrations


Page 74 of 336




Corporate Responsibility Report 2008Preferential pricing

Pricing is one factor that impacts on access to medicines and vaccines in developing countries. We price our medicines preferentially for developing countries and use a tiered pricing system in wealthier middle-income markets where people �s ability to pay for medicines varies significantly.

However, price is only one aspect of affordability. The other is ability to pay, which is down to provision and allocation of resources, primarily from governments, and poverty reduction. For the billion people who live on $1 a day, virtually nothing is affordable.

Early in 2009 we announced a new strategic approach to pricing in the Least Developed Countries (LDCs)1.From April 2009 we will reduce our prices for patented medicines in the LDCs so that they are no higher than 25 per cent of the price in the developed world. This will be the maximum price � where possible we will go further and reduce our prices more aggressively, while ensuring we cover our manufacturing costs so this offer is sustainable. Price reductions in April 2009 will be for 110 products and formulations across Least Developed Countries, with an average price reduction of 45 per cent.

We will also reinvest 20 per cent of our profits from LDCs back into projects partnering with organisations such as NGOs to widen access and strengthen the healthcare infrastructure of LDCs. Our sales in LDCs are relatively low so this 20 per cent of profit will be limited � initially around �1 to �2 million a year. However, by our action we hope to send a signal to all multi-national companies operating in LDCs to join us and contribute to making a difference.

In many developing countries the healthcare crisis is dominated by the social and economic impacts of HIV/AIDS, TB and malaria. GSK has both anti-retrovirals (ARVs) to treat HIV/AIDS and anti-malarialtreatments in our portfolio. We are committed to increasing access by providing these medicines to the Least Developed Countries and sub-Saharan Africa at not-for-profit prices (see key facts box). We negotiate preferential prices for our HIV/AIDS medicines with middle-income countries on a case-by-case basis.

Read more about extending our product portfolio in the developing world.

Vaccines � our tiered pricing modelVaccines can make a significant contribution to public health , helping to prevent many potentially fatal infectious diseases. Immunisation is acknowledged by the World Health Organization (WHO) as being �among the most cost-effective of health investments�.

We make our vaccine portfolio available at preferential prices to developing countries, using a tiered pricing system. Prices are linked to gross national incomes as defined by the World Bank as well as the size of an order and length of a particular supply contract. For the developing world, prices can be as little as a tenth of those for developed countries.

We work with multinational organisations such as GAVI, UNICEF, the WHO and the Pan American Health Organization, governments and non-governmental organisations to provide appropriate and affordable vaccines for developing countries. We typically supply vaccines to GAVI and UNICEF at 10-20 per cent of developed world prices to these organisations.

By selling our vaccines in large volumes through longer-term contracts we are able to significantly reduce the price of each individual dose. This includes basic polio vaccines as well as specially developed combination vaccines that target several diseases. In 2008, of the 1.1 billion vaccine doses we shipped, 78 per cent went

Home Responsibility Access to medicine Developing countries Preferential pricing


Page 75 of 336




to the developing world.

Many of our vaccines are included in government vaccination programmes in middle-income countries. For example, Rotarix, our rotavirus vaccine, is now included in government vaccination programmes for new-born babies in Brazil, El Salvador, Mexico, Panama and Venezuela. In 2008 we supplied 20 million doses of this vaccine; the vast majority went to developing or middle-income countries.

In addition to tiered pricing, we are looking for innovative ways to increase access to vaccines in poorer countries. One option being explored for Cervarix, our vaccine against Human Papillomavirus, is to partner with a major international non-governmental organisation. Through this partnership we will be able to use this organisation�s distribution networks to increase the supply of our vaccine in developing countries, where most deaths from cervical cancer occur.

Preventing product diversionProduct diversion, where not-for-profit medicines are illegally shipped back for sale in wealthier countries, denies treatment to patients in poorer countries. Our anti-diversion measures include specially designed access packs for most of our ARVs, and red rather than white tablets for Epivir and Combivir.

We only enter into voluntary licences when we know the manufacturer can ensure product diversion will not occur.

1 As defined by the UN: http://www.un.org/special-rep/ohrlls/ldc/list.htm

Not-for-profit (nfp) prices for medicines � key facts

GSK has offered preferential pricing for our anti-retrovirals since 1997 and formal not-for-profit (nfp) pricing since 2001.Our nfp prices are sustainable � we do not make a profit on them, but we do cover our costs. This means that we can sustain supply of these high-quality products for as long as they are neededNot-for-profit prices apply to GSK�s anti-retrovirals and malaria treatmentsNfp prices are available to all the Least Developed Countries and sub-Saharan Africa � a total of 64 countriesIn addition, PEPFAR projects and eligible Global Fund projects bring this number up to over 80 countriesEligible customers include public sector customers and nfp organisations as well as private employers in sub-Saharan Africa providing treatment to uninsured staffCombivir, our leading combination ARV, is available at $0.54 a dayOur nfp prices include insurance and freight costs, unlike the prices quoted by most generic companies. They are applicable to orders of any size and are not dependent on large order quantities

Page 76 of 336




Corporate Responsibility Report 2008Preferential pricing

We offer our anti-retrovirals (ARVs) and anti-malarials at not-for-profit (nfp) prices to public sector customers and not-for-profit organisations in 64 countries - all the Least Developed Countries and all of sub-SaharanAfrica. In February 2008 we announced significant new price reductions for our ARVs offered on a nfp basis to these countries. This reduction was the fifth time we have reduced prices as part of our pioneering preferential pricing policy originally introduced in 1997. Combivir, our leading ARV, now sells at $197 per patient per year in the least developed countries compared to $730 in 2001.

The most significant reduction, of almost 40 per cent, was on Ziagen oral solution (abacavir). This is recommended by the World Health Organization (WHO) for use in first-line and second-line regimens within resource-limited settings, particularly for children. A number of factors enabled us to implement these price changes, including improvements and efficiencies in manufacturing and supply, and reductions in the costs of active ingredients.

Number of tablets shippedIn 2008, we shipped 11.4 million tablets of nfp Combivir and 58.6 million tablets of nfp Epivir to the developing world, compared with 13 million and 72 million respectively in 2007. The decline in supply of our own ARVs is more than outweighed by a growth in volumes from our licensees. In 2008 our licensees supplied over 279 million tablets of their versions of Epivir and Combivir to African countries.

Supply of Combivir and Epivir tablets by GSK*

*This includes preferentially priced tablets supplied by GSK and tablets supplied by our licensees.

During 2008 GSK supplied ARVs at nfp prices to 37 countries, compared with 31 in 2007. We will continue to look for new customers for our nfp ARVs in these countries and regularly review our nfp prices. However, it may well be that our licensees are able to produce first-line ARVs at lower costs and will continue to increase their share of the business.

Patients receiving treatment

Home Responsibility Access to medicine Developing countries Preferential pricing


Page 77 of 336




It is difficult to estimate the number of patients treated as a result of our preferential pricing agreements, since we do not control healthcare provision. However, the WHO estimates that three million people in the developing world were treated with ARVs by the end of 2007, an increase of one million in a year.

A report from the Accelerating Access Initiative (AAI) suggests that by December 2007, around 875,000 patients in developing countries were receiving at least one ARV treatment supplied by the nine R&D-basedpharmaceutical companies in the AAI. In the two years since December 2005, the total number of patients in developing countries receiving treatment from the AAI companies had increased by 22 per cent. In Africa alone, over 665,600 patients are being treated with at least one ARV supplied by the AAI companies, an increase of 49 per cent over two years. This has resulted in an over 70-fold increase in the number of people being treated with medicines supplied by the AAI companies in Africa since the establishment of the AAI in May 2000.

Read more about how a GSK vaccine has contributed to the elimination of Hib mengingitis.

Page 78 of 336




Corporate Responsibility Report 2008Pricing in middle-income countries

Middle-income countries (MICs), such as Brazil, China, Thailand and Indonesia, and some low-incomecountries such as India are more economically developed than the world �s poorest countries, and often have a large and affluent middle class.

They therefore provide greater commercial opportunities than the world�s poorest countries. According to a report by accounting firm, PricewaterhouseCoopers, the growing wealth of Brazil, China, India, Indonesia, Mexico, Russia and Turkey means they could account for 20 per cent of the global pharmaceutical market by 2020.

However, many middle income countries also have large numbers of people living in extreme poverty and healthcare demands often outstrip available resources. These challenges are made worse by an increasing incidence of chronic diseases such as asthma and diabetes.

To reflect this situation, in 2008 we restructured our commercial organisation. We split our old International division and created two new regions � Emerging Markets and Asia Pacific. This will enable us to respond to commercial opportunities while reflecting the healthcare environment and individual needs.

Increasing access to medicines in middle-income countries within a responsible commercial framework is complex. It is clear that there is no one universal �one size fits all� solution. This complexity was a key aspect in the Pharma Futures 3 dialogue, which explored the links between sustainable pharmaceutical business models and improved health outcomes in middle-income markets, including China, India and Brazil. It is vital that we identify the best approaches for GSK to address these complex challenges.

The challenges include:

Low government healthcare spend relative to gross domestic product (GDP). This can be as low as one per cent of GDP compared with an average of nine per cent in the EU

Poor healthcare infrastructure, including hospitals, clinics, doctors and nurses

A high level of income inequality within countries, which can complicate pricing considerations

The affordability of medicines and vaccines

Taxes and mark-ups on medicines and vaccines

Stigma and discrimination associated with certain diseases

Use of traditional medicines

Remote rural populations

We recognise that many middle-income countries need assistance. However, we believe a different approach is needed from the one we take in the world �s poorest countries.

Our offer to supply medicines at not-for-profit prices and vaccines at highly preferential prices in the world�spoorest countries is only sustainable if we can continue to make an adequate return on them in wealthier markets. Many middle-income countries are also growing commercial markets for GSK and represent an

Home Responsibility Access to medicine Developing countriesPricing in middle-income countries

Approach Performance & plans

Page 79 of 336




important source of future business for our industry.

Our response in these markets must therefore balance our commercial objectives with our global commitment: to work with governments and other stakeholders to support efforts to deliver our medicines and vaccines to as many needy people as possible. Our approach combines long-established practices such as voluntary licences, tiered pricing for vaccines and preferential pricing for HIV/AIDS and malaria medicines with more innovative strategies that focus on the different socio-economic groups within individual MICs.

Page 80 of 336




Corporate Responsibility Report 2008Pricing in middle-income countries

Our approach to pricing in middle-income markets is constantly evolving and ongoing pricing pilot programmes are informing this evolution. These comprise a mixture of long-established practices and new approaches. We intend to formalise and communicate on our pricing policies in middle-income countries during 2009.

Long-established practicesTiered pricing for vaccines

Our vaccines are available to 18 GAVI-eligible middle-income countries (MICs), including Indonesia, Sri Lanka and Cuba, at highly discounted prices. Many of our vaccines are also included in government vaccination programmes in middle-income countries.

Preferential pricing for HIV/AIDS and malaria medicines

We negotiate preferential pricing arrangements for HIV/AIDS medicines and anti-malarials with middle-income countries on a case-by-case basis. This is done bilaterally through dialogue with governments. We believe this approach is appropriate because the burden of disease and the resources available to address that burden vary significantly from country to country, and within countries. These arrangements combine a viable and sustainable commercial return for GSK with improved affordability for the healthcare systemsconcerned.

Novel approachesWe are developing a more flexible, responsive approach to accessing private and public sector markets in MICs. Our strategy focuses on the different socio-economic groups within individual MICs.

It uses the standard classifications for socio-economic groups, the A group being the wealthiest section of society and E being the poorest. Typically, a company such as GSK makes a disproportionate share of its sales to people in the A/B group with sales tailing off quite sharply in the C/D group. Usually we will be unable to compete with low-cost generic medicines for sales to the E group.

We believe the most productive way for us to align our commercial and accessibility goals is to make our products more readily available to the C/D segment of the market. This will free up more government funding for the poorest segment of the population.

We are exploring options through projects including:

Tiered pricing models within as well as between countries, including those which enable products to be priced differently for the private and public health sectorsGauging the relationship between price and volume for selected products in targeted MICs. For example, we may be able to reduce the price of products where we have orders for a sufficiently high volume of productsLocal sourcing and manufacturing arrangements designed to address cost issues

It is too early to draw definitive conclusions from these pilot projects and some results from the pilots are commercially sensitive. In the pilots investigating the relationship between price and volume, the volume

Home Responsibility Access to medicine Developing countriesPricing in middle-income countries


Page 81 of 336




targets were not achieved and the analysis was confounded by unexpected factors such as reduced demand for our diabetes medicine Avandia. However, it is clear that there are no simple or universal solutions. We have learned from the projects and will continue to investigate these approaches and establish further pilots where initial pilots have proved inconclusive. For example, we are exploring options such as within-country tiered pricing for vaccines.

It is clear that pricing decisions cannot be assessed in a vacuum and other factors, such as market dynamics including new product introductions and how competitors react to our price changes, have to be taken in to account. It is also evident that not every programme will be suitable for every middle-incomecountry. These pilots are therefore helping to inform our approach in middle-income countries. We are confident that the more successful elements will be incorporated into our long-term commercial strategy and we plan to report more on this during 2009.

Cervarix price reduction � Philippines, Vietnam, Indonesia and South Africa

GSK works in partnership with stakeholders to optimise the availability of its vaccine against humanpapillonnavirus. Improving access to treatment requires many stakeholders working together to develop better infrastructure, distribution channels, adequate funding, better disease awareness and education and the appropriate market dynamics.

GSK is committed to ensuring pricing is not a barrier to access in the developing world and has reduced prices in the Philippines, Vietnam, Indonesia and South Africa. For example, in the Philippines we havereduced the price of Cervarix by 60 per cent. In South Africa, the price reduction is of the order of 40 per cent.

GSK has a long track record of tiered pricing for vaccines available in government-led programmes, where we charge reduced prices in countries with lower levels of income. The reduction of the price for Cervarix in a number of countries is a further demonstration of our commitment to increasing access to our vaccines.

�

Page 82 of 336




Corporate Responsibility Report 2008Voluntary licensing

Voluntary licences are granted by patent holders to allow a generics company to manufacture and sell their products. Some people assume that generics are always cheaper than branded products and are seen by many as a key solution to the access crisis in the developing world. Pharmaceutical companies are under increasing pressure to grant licences.

However, generics are not always cheaper and the success of a voluntary licence will depend on the right licensees being chosen. This is particularly true for the treatment of a chronic disease like HIV/AIDS, where the sustainable supply of good-quality anti-retrovirals (ARVs) is key.

We do not believe that voluntary licences are a universal solution to tackling HIV/AIDS or disease in general. In most cases local manufacture of ARVs will make little difference to their affordability and access to patients. This is a point endorsed by the WHO. This is because the real barriers to access are the lack of healthcare infrastructure and resources to pay for medicines regardless of where they come from.

However, funding from the World Bank and other international donors has meant that voluntary licences can have a role to play in efforts to tackle the HIV/AIDS epidemic in sub-Saharan Africa by helping to increase the availability of medicines and contribute to better security of supply.

A decision to grant a voluntary licence depends on a number of factors including, in the case of HIV/AIDS, the severity of the epidemic in that country, local healthcare provision and the economic and manufacturing environment.

We discuss voluntary licences with potential partners on a case-by-case basis. We need to be sure that the manufacturer can provide a long-term supply of good-quality medicines and will implement safeguards to prevent the diversion of medicines to wealthier markets.

We continue to consider the role of voluntary licensing in helping to increase access to medicines in middle-income countries without undermining our commercial business.

Compulsory licencesCompulsory licences are issued by governments and involve intellectual property rights being taken away from the rights holder. Compulsory licences are one of the flexibilities in the World Trade Organization �sTRIPS agreement on intellectual property which can be used for humanitarian purposes. However, widespread use of compulsory licences will undermine the intellectual property framework and be counter-productive in the long term. R&D into new treatments, especially where commercial markets exist such as for HIV/AIDS, depends on protection of intellectual property.

Home Responsibility Access to medicine Developing countries Voluntary licensing

Approach Performance

Page 83 of 336




Corporate Responsibility Report 2008Voluntary licensing

We granted our first voluntary licence (VL) in 2001 and have now negotiated eight licensing agreements for our ARVs in Africa. Some of our VLs cover individual countries or trade blocs while others cover all of sub-Saharan Africa.

Update August 2009

In July 2009 we agreed a royalty free voluntary licence to enable Aspen to produce our ARV abacavir. This takes the total number of licensing agreements for ARVs in Africa to nine. The offer to grant licences for abacavir is open to all our licensees.

In August 2007 we gave consent to enable a Canadian company, Apotex, to manufacture a generic fixed-dose combination ARV, containing two molecules over which GSK has patent rights, for the treatment of HIV/AIDS in Rwanda.

This consent was granted under Canada�s Access to Medicines Regime which reflects the WTO �31f �agreement. This enables governments to authorise the production of certain patented medicines for export. GSK agreed to waive royalties on the basis that Apotex�s triple combination generic ARV will be supplied on a not-for-profit basis.

Our licensees supplied 279 million tablets of their versions of Epivir and Combivir to Africa in 2007. This represents more than 50 per cent growth over 2007, and 130 per cent more than in 2006. We welcome this trend as it gives customers in sub-Saharan Africa greater choice and contributes to better security of supply.

We have granted a VL to Simcere, a Chinese manufacturer, granting them the right to manufacture and sell zanamivir (Relenza) containing products in China, and to sell in a number of other countries including all 50 of the least developed countries. Zanamivir is an anti-viral which can help treat influenza and the VL was driven by a specific concern to help ensure sufficient supplies in the event of a global flu pandemic.

Collaboration with local manufacture significantly reduces disease burden of rotavirus � Brazil

We pursue initiatives that have both high public health impact and are commercially viable. An example of this can be seen in the implementation of universal mss vaccination (UMV) programmes in Brazil against rotavirus.

GSK and the Brazilian vaccine manufacturer Fiocruz have had a long-standing partnership for the production of vaccines for diseases causing high mortality and morbidity such as polio, Haemophilusinfluenzae type b (Hib), measles, mumps, rubella and most recently rotavirus. The partnership between GSK and Fiocruz supports all of Brazil �s requirements for universal mass vaccination against rotavirus with the Rotarix vaccine.

Despite incomplete coverage, the vaccination programme has significantly improved public health:

A 29 per cent reduction of all hospitalisation due to acute diarrhoea of any aetiology in 2007

An 85 per cent reduction of rotavirus-related hospitalisations1

A reduction in diarrhoea outbreaks due to rotavirus in S5o Paulo from 36 per cent in 2004 to 8 per cent

Home Responsibility Access to medicine Developing countries Voluntary licensing


Page 84 of 336




in 2008A reduction in the proportion of cases of gastroenteritis caused by the rotavirus from 88 per cent in 2004 to 1 per cent in 2008

The rotavirus vaccine is expected to lead to 703 avoided deaths (75 per cent reduction) and 1.7 million avoided cases (54 per cent reduction).

1. Brazilian Ministry of Health statistics

Page 85 of 336




Corporate Responsibility Report 2008Developed countries

Access to medicines is not only an issue for the developing world. Even in developed countries some patients cannot afford the medicines they need.

This is a particular problem in the US where many people do not have health insurance and there is limited public health provision.

We have developed Patient Assistance Programs (PAPs) and discount savings cards in the US and we have introduced discount cards in some middle-income countries.

Programmes in the USOur Patient Assistance Programs (PAPs) and discount savings cards provide prescription medicines to uninsured patients in the US free or at minimal cost. GSK operates several programmes, including Commitment to Access, which covers cancer treatments, and Bridges to Access, which covers other medicines for outpatients. Patients are registered trough one phone call from a patient advocate and receive medicine at their local pharmacy or by mail order.

GSK Access provides extra help for low-income senior and disabled patients enrolled in Medicare Part D. This programme provides free medicines for eligible patients who have spent $600 or more on prescription medicines during the current year, and whose income is between 135 per cent and 250 per cent of the Federal Poverty Level. The Federal Poverty level is about $11,000 for a single person, $14,500 for a couple and $22,000 for a family of four.

We are a member of Together Rx Access, an industry programme which gives uninsured US citizens 25 to 40 per cent discounts on medicines from GSK and seven other pharmaceutical companies. The programme is open to people who earn up to four times the federal poverty level. Nearly two million Americans are enrolled in Together Rx Access.

We are also working with governments and employers in the US to find new ways to address the problem of chronic diseases while reducing healthcare costs

Discount cards in other countriesGSK has introduced discount cards in Lithuania and Ukraine to enable low-income patients with chronic diseases such as asthma to obtain prescription medicines at a discount price.

��

Home Responsibility Access to medicine Developed countries


Page 86 of 336




Corporate Responsibility Report 2008Developed countries

Programmes in the USIn 2008, more than 415,000 patients received GSK medicines worth over �56 million through our US programmes.

The value of our medicines is calculated using an average cost of goods rather than the wholesale acquisition cost (WAC) that we have used in previous years. This new approach to valuing medicines more accurately reflects the true cost to GSK and is therefore more transparent. We believe we are the first pharmaceutical company to adopt this practice.

The number of patients using our largest patient assistance programmes declined by eight per cent compared with 2007. This is due to a decline in sales for Avandia and generic substitution for Coreg and Paxil. There may also have been an increase in the number of people without insurance delaying visits to the doctor.

This year more than 8,000 patients received over 21,000 30-day prescriptions of GSK medicines through the Together Rx Access programme, giving patients discounts of more than $1.2 million. Since its inception in 2002, Together Rx Access has given nearly two million patients savings totalling $80 million across a wide range of products.

Discount cards in other countriesIn Lithuania, our Orange Card gives senior citizens and the disabled a discount of up to 60 per cent on the patient co-payment on all GSK prescription medicines. So far more than 60,000 patients have applied for an Orange Card and over 450 pharmacies (30 per cent of the pharmacies in Lithuania) are registered to participate. In 2008 the total discount given was �450,000.

Our Orange Card in Ukraine gives significant discounts to all asthma and chronic obstructive pulmonary disease patients who need financial support for purchasing Seretide, our inhaled treatment for asthma and chronic obstructive pulmonary disease. In 2008 more than 19,000 patients received e-Orange Cards and 326 pharmacies were registered to participate in the programme. In 2008 the total discount given on GSK products was �658,000.

��

Home Responsibility Access to medicine Developed countries


Page 87 of 336




Corporate Responsibility Report 2008Pricing our medicinesPrices for newly approved medicines are determined on a country-by-country basis.

In some countries, prices are negotiated directly with governments or other payers, for example sickness funds and private health insurers. In others, manufacturers are free to set their own prices subject to other kinds of government controls.

Pharmaceutical R&D is a lengthy and expensive process. To develop one successful medicine or vaccine it can take, on average, ten to twelve years and typically costs around $1.2 billion1. For every product that reaches the market, thousands do not make it through the research process.

We seek to ensure that the price of our new products reflects:

Their clinical value to patients in terms of improved therapy, better safety and fewer side effects

The high risks associated with R&D

The need for a fair return on investment

Affordability for our customers

Ultimately, national price regulation will often amount to a balancing act between managing public healthcare budgets, enabling patient access and rewarding innovation and R&D investment.

We sell our medicines to wholesalers and pharmacies, not directly to patients. These intermediaries often add their own price mark-ups to pharmaceutical products, and in addition duties and tariffs may be imposed on imported products. This affects the price paid by the end customer, for example national health services, hospitals and patients.


Home Responsibility Access to medicines Pricing our medicines

Page 88 of 336




Corporate Responsibility Report 2008Intellectual propertyIntellectual property (IP) refers to creations of the human mind. There are laws in most countries to stop those creations being used by others. These include patents, copyrights and trademarks.

At an international level, IP is protected through the World Trade Organization�s (WTO) Trade Related Aspects of Intellectual Property Rights Agreement, commonly known as TRIPS.

Patents and other IP rights play a vital role in encouraging the innovation needed to develop new treatments for many of the most serious and life-threatening diseases. We invest considerable time and money to develop each new pharmaceutical product - an average of $1.2 billion1 and 10-12 years per product. For every 5,000 to 10,000 compounds tested, an estimated five reach clinical trials and only one reaches the market2.

If a new product could immediately be copied and sold by others, we would not be able to continue to fund new research. This would discourage innovation and limit research into newer and better medicines and vaccines.

In relation to the healthcare crisis in the developing world, intellectual property, specifically patents, has been criticised for two broad reasons. Opponents claim that:

The market-driven IP-based R&D system has led to a mis-prioritisation of R&D resources. This means that R&D prioritisation is based on developed world market opportunities rather than on unmet medical need. This has led to an R&D deficit into diseases of the developing world

IP has acted as a barrier to access. This has two facets: firstly patents have led to monopoly pricing and have prevented generic competition being able to drive prices down. Secondly, patents have acted as a barrier to follow-on innovation such as the development of fixed-dose combinations

We believe that these concerns have been overstated, but we recognise that we need to seek new approaches to IP to help tackle the healthcare crisis. We believe that the IP system is compatible with R&D into diseases of the developing world. GSK and others in the industry have expanded research into neglecteddiseases in recent years. In November 2008 the international trade association, the IFPMA, published data that showed that the number of medicine and vaccine projects undertaken by companies with product development partnerships or on their own had increased to 67, up from 58 in November 20073.

We believe that patents are a minor issue in preventing people in the developing world from getting access to medicines. There is little or no patent protection for many vital medicines such as treatments for malaria, tuberculosis and diarrhoeal diseases, which kill millions of people a year. Over 95 per cent of the medicines on the World Health Organization �s (WHO) Essential Medicines List are not patent protected anywhere in the world, yet the WHO says that one-third of the world�s population does not have regular access to these drugs. In Africa and parts of Asia this figure rises to two-thirds of the population.

Poverty is the biggest barrier to effective healthcare in the developing world because it is usually associated with a poorly developed healthcare infrastructure with little or no access to doctors and hospitals. The significant barriers that stand in the way of access to medicines in the developing world must be tackled as a shared responsibility by all sectors of global society.

However, traditionally we have only allowed access to our intellectual property in very controlled situations. We are now exploring ways to be more flexible with our intellectual property that relates to neglected diseases.

Home Responsibility Access to medicines Intellectual property

Page 89 of 336




IP �s primary objective is to incentivise and reward research. However, there are a number of neglected tropical diseases, such as leprose and cholera, where there is a serious lack of research, for a variety of complex reasons. We need to explore how to address this gap, including the use of IP.

One approach might be for a patent pool to encourage more research into neglected tropical diseases. GSK is placing over 500 granted patents and over 300 pending applications, relating to approximately 80 patent families, in a pool to help others to develop potential medicines for neglected diseases. In addition to providing access to these patent filings, GSK will set out a mechanism to enable third parties to request access to other intellectual property and know-how about its medicines which may help researchers to develop new medicines for neglected tropical diseases.

The aim of any such pool must be to encourage research that would otherwise not happen. If, as we hope, something new comes out of such research, then the full benefits must go directly to the LDCs. Such a pool has to be voluntary, so as to foster an atmosphere of cooperation and to encourage others to join.

A pool is one mechanism we are exploring to achieve these aims. We will also consider new ways of stimulating research.

We will continue to defend our IP robustly outside the pool. Our business is sustained through being rewarded for the discovery and development of innovative medicines. However, in the poorest countries we plan to be much more flexible and will develop our work in this area throughout 2009.

Intellectual property laws can help prevent the distribution of counterfeit products, which present a serious health risk for patients.


2. Pharmaceutical Industry Profile 2008, Washington DC, PhRMA March 2008

3. www.ifpma.org/News/NewsReleaseDetail.aspx?nID=10975

Page 90 of 336




Corporate Responsibility Report 2008WTO and the TRIPS AgreementIntellectual property (IP) rights are protected globally by the World Trade Organization �s (WTO) Trade Related Aspects of Intellectual Property Rights Agreement (TRIPS).

The TRIPS Agreement was signed by all WTO member countries in 1994 and covers all types of IP including patents, copyright and trademarks. It sets minimum standards for IP rights in all WTO member countries.

The Agreement covers all areas of business and society including software, music and the arts, and is designed to encourage innovation in all business sectors.

Developing countries have been given extra time to comply with TRIPS. Some countries, for example India, had until 2005 to introduce patents for pharmaceuticals. The 50 least developed countries of the world, for example Rwanda and Gambia, have until 2016 to comply with the Agreement for pharmaceuticals, and until 2013 for all other sectors.

Patents, TRIPS and access to medicinesThere have been concerns that patents and the TRIPS Agreement restrict access to medicines for people in developing countries, by making it difficult for them to obtain cheap generic versions of important drugs such as those used to treat HIV/AIDS. However, the TRIPS Agreement contains a number of public health safeguards that have been clarified by the WTO.

Concerns over TRIPS and access to medicines were addressed in 2001, at the WTO ministerial conference in Doha, when WTO ministers confirmed that IP protection is important for the development of new medicines and that it does not and should not restrict members � rights to protect public health. They also agreed that the TRIPS Agreement could and should be implemented and interpreted in a way that supports public health and promotes access to medicines.

This understanding was captured in the Doha Declaration on TRIPS and Public Health (the Doha Declaration), which confirmed the rights of member countries to use the flexibilities in TRIPS such as compulsory licences to protect public health priorities. Compulsory licensing allows governments to issue a licence so a patented product can be manufactured without the consent of the patent owner.

The WTO members further agreed to modify the TRIPS provisions relating to compulsory licensing in August 2003 so that countries unable to produce pharmaceuticals domestically can import patented products made under compulsory licences abroad. This provision was confirmed as an amendment to the TRIPS agreement by the WTO in December 2005.

GSK supports the Doha Declaration and the agreement on compulsory licensing. We are committed to playing a key role in the access crisis.

Home Responsibility Access to medicines Intellectual property WTO and TRIPS agreement

Page 91 of 336




Corporate Responsibility Report 2008Intellectual property rights in briefPatentsA patent gives the inventor of a new product the exclusive rights to manufacture, use, sell or import that product or the process used to make it. These rights are granted for a set period, generally 20 years. The term of the patent runs during the lengthy research and development (R&D) period, and often only five to eight years of the patent remains once a product is marketed. Some countries have extended the patent term to compensate for the long R&D process.

Patents are granted on the condition that the inventor publishes a full description of the invention, which would allow someone else to manufacture the product. This helps to build scientific understanding and encourage further research and innovation.

TrademarksA trademark is a brand name, word, phrase, symbol or design, or a combination of these, that identifies and distinguishes a product or company. The owner of a trademark can prevent its use by a third party.

Trademarks enable our customers to tell our products from those of our competitors and provide reassurance of quality and the origin of the product. They are therefore a vital part of our marketing.

Data exclusivityBefore we can sell a new product we must prove that it is effective and safe to use. All our products are rigorously tested through clinical trials and other medical research. The results of this research are submitted to governments on a confidential basis.

Data exclusivity means that governments cannot use or disclose these data for a fixed period. This ensures that other companies cannot benefit from our research for free - for example to demonstrate the safety and efficacy of generic copies of our products.

In the interest of facilitating timely market access and the need to avoid repetitive animal testing and human clinical trials, competitors may refer to our data after expiration of the period of exclusivity.

Home Responsibility Access to medicines Intellectual propertyIntellectual property rights in brief

Page 92 of 336




Corporate Responsibility Report 2008The futureIncreasing access to medicines is a global challenge.

While encouraging progress has been made in some areas, significant problems remain and new issues are likely to emerge. For example:

The continued need for a significant scale-up of treatment for HIV/AIDS in sub-Saharan Africa, in resource-poor settings

A potential global flu pandemic

The healthcare needs of poor people in middle-income countries

The growing impact of non-communicable diseases such as diabetes in poor and rich countries

The death of 2.5 million children each year from vaccine-preventable diseases

In 2009 we will implement programmes in a number of areas to help address these challenges:

Intellectual property � we will explore ways to be more flexible with our intellectual property rights as they relate to neglected diseases, including exploring the idea of patent pools. We believe that this could speed up the development of new medicines and will encourage other pharmaceutical companies to adopt a similar approach.

Update August 2009

On 24 March 2009 we launched an LDC Neglected Tropical Disease Patent Pool website which enables interested stakeholders to:

Access a list of GSK�s patent filings on small molecule pharmaceuticals for the treatment of neglected tropical diseases (NTDs). Organisations can apply for licences in areas where we are not developing treatments;Request licences to research and develop a treatment for an NTD using a GSK patented technology for small molecules that we are not currently developing;Get our help with problems arising in their research and development into small molecule therapeutics to treat NTDs in Least Developed Countries.

In July 2009, the US biotechnology group Alnylam became the first company to follow GSK and contributesome of its patents to the pool.

Pricing � we will improve transparency in our pricing policies and implement our new pricing policies in least developed countries and continue to evolve new approaches to increase affordability in middle-income countries

Update August 2009

On 1 April 2009 we implemented price reductions on our patented products in the Least Developed Countries (LDCs). Our commitment is that all GSK patented products in these countries will now cost less than 25 per cent of their price in the referenced developed countries.

Home Responsibility Access to medicines The future

Page 93 of 336




We reduced prices for seven patented brands (110 individual product lines and formulations) by an average of 45 per cent. In some countries prices were not reduced immediately due to regulatory processes such as needing to obtain government authorisation, however the price reduction process was initiated. We also cut prices in some non-LDC markets in East Africa and Francophone West Africa to reduce the risk that products would be diverted from the LDCs and sold in these wealthier countries, thereby reducing their availability in the LDCs.

Research � we will evaluate opportunities to expand our Tres Cantos �diseases of the developing world�research centre into a world-class, global centre of excellence. We will do this by encouraging partnerships with governments, NGOs and other pharmaceutical companies.

Update August 2009

We have appointed a leadership team and are working with partners to extend the capacity and scope of the Tres Cantos�*��!��0��+��+��,��-�+��"��#�+�� way of working and providing the*��""�+��+ ��*�+� ��,��*�+-��+�,�� +!�"+�6��-��GSK��

Healthcare services � we will seek to partner with governments and other stakeholders to help to strengthen healthcare infrastructure and services

Update August 2009

Through our reinvestment initiative GSK will support the governments of five LDCs in addressing priority healthcare challenges, to remove some of the barriers to quality healthcare and to strengthen healthinfrastructure. This will be achieved through targeted partnerships that will increase access to essential -��#��+��+ ��1��+ ��#,��#*�+��*�$%%/�

In four of the LDCs - one each from the GSK regions of East Africa, Southern Africa, Anglophone West Africa and Francophone West and Central Africa - we will be expanding our maternal and child healthactivities, with specific focus on children under five through the Integrated Management of Childhood Illness programme.

In one additional LDC we will be piloting a new Child Family Wellness (CFW) model. The CFW micro-franchising model involves building a network of micro pharmacies and clinics to improve access toessential medicines, basic healthcare and prevention services for children and families. The work will use business models that maintain standards, are readily scalable, and achieve economies of scale. GSK is currently working with an NGO, the HealthStore Foundation, which has implemented the model in Kenya, to run viability studies in at least two LDCs in East Africa. We will then select one country in which to implement the initiative.

In July 2009 we announced new commitments to fight HIV/AIDS in Sub-Saharan Africa, with a special focus on the care and treatment of children. They include �10 million seed funding to support a public private partnership for research and development of new HIV/AIDS medicines for children, a commitment to seek collaborations with other companies to develop fixed-dosed anti-retroviral combinations, and the creations of a �50m Positive Action for Children Fund.

We are working with the main industry associations on new initiatives to increase R&D and improve access. The first outcome of this activity was the announcement in January 2008 of a grant of $1 million by the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) to the Special Programme for Research & Training in Tropical Diseases (TDR), co-sponsored by UNICEF, UNDP, the World Bank and the WHO. The grant will support TDR �s development of new medicines to combat diseases that disproportionately affect poor people living in developing countries.

Other activities include plans to establish a pilot industry consortium to focus on developing new targets (molecules that can prevent or interrupt disease progression) against diseases of the developing world.

Update August 2009

In April 2009 we announced our intention to combine the GSK and Pfizer HIV businesses to create a new

Page 94 of 336




company�� +!�� +!��*��7��+��-��8!��-#��,��#��will create a specialist unit that is more sustainable and broader in scope than either company�s individual business. The new company will particularly look to improve treatments and formulations for children living with HIV. We will continue to offer HIV medicines at not-for-profit prices in the world�s poorestcountries, and to issue new voluntary licences to diversify production and expand capacity in these markets.

The new company will be responsible for delivering on the commitments announced by GSK in July 2009.

�

Page 95 of 336




Corporate Responsibility Report 2008Response to assurance recommendationsBureau Veritas assured the Access to medicines section of our CR Report 2007 (see details on pages 49-50) and made recommendations for how we could improve our reporting on access to medicines in four key areas.

Below we report these challenges and how we have responded:

1. Vision � GSK could further enhance and communicate its overall vision and strategy on access to medicines. This should demonstrate a holistic, long-term approach; articulate the business case; provide context and explain how it is integrated into its overall business strategy.

GSK response: In June 2001, GSK published �Facing the Challenge� which summarised our approach and contribution to improving access to medicines, and the principles underlying our approach. In 2008 Andrew Witty assumed the position of CEO of GSK and instigated a review of our approach to access to medicines. In a major speech at Harvard University in February 2009, Andrew Witty set out our approach to improving access to medicines in the developing world and the initiatives we will implement in 2009.

2. Governance � GSK should provide greater detail on the governance, accountability and management structures for access to medicines and the relationship with external stakeholders.

GSK response: Abbas Hussain, President of Emerging Markets at GSK, leads our access efforts which are also reviewed by the Corporate Executive Team, GSK�s most senior management team, and by the Corporate Responsibility Committee of the Board. In 2008, we have continued to engage with stakeholders on access issues including the ATM Index and participating in the development of a report on GSK �sapproach by Paul Hunt, the UN Special Rapporteur on the Right to Health.

3. Transparency � GSK provides significant information and case studies but should also consider how to provide greater transparency on the impacts of its access to medicines initiatives and how to put these into context in relation to its overall operating model.

GSK response: Assessing the impacts of our access to medicines programme is a challenge. We report data on the number of tablets shipped through our preferential pricing programmes and voluntary licence agreements, but it is difficult to translate these figures into numbers of patients receiving treatment as we are not involved in healthcare delivery. Our medicines are also used in combination with medicines supplied by other pharmaceutical companies, so simply converting our shipments into patient numbers would be misleading.

The Accelerating Access Initiative (AAI), a public-private partnership working to combat HIV/AIDS, calculates treatment rates using medicines supplied by the nine R&D-based pharmaceutical companies involved in the partnership. It estimated that by December 2007, around 875,000 patients in developing countries were receiving at least one ARV treatment supplied by the companies.

Where we are able to generate robust data on the impact of our programmes we will seek to do so. For example in October 2008 significant data on the lymphatic filariasis (LF) elimination programme was published in the Public Library of Science (PLoS) Journal of Neglected Tropical Diseases1. The study found that, in the ten years since GSK �s commitment, the LF elimination programme has prevented 6.6 million children from acquiring LF and stopped a further 9.5 million infected people from progressing to more debilitating stages. All of this is the result of the fastest-growing drug administration programme in public health history, delivering what the study calls the �best buy in public health�.

Home Responsibility Access to medicines Response to assurance recommendations

Page 96 of 336




4. Measuring performance � linked to transparency, GSK should consider how to provide relevant indicators that demonstrate the implementation of a long-term strategy and promote comparisons across the industry.

GSK response: We welcome comparisons across the industry on performance on access to medicines; however, since approaches differ significantly between companies, making meaningful comparisons is a challenge. What is right for one company may not be right for another.

A method of ranking companies on their approach to access to medicines was developed during 2008, the Access to Medicines Index. GSK was ranked top in the first Access to Medicines Index, published in 2008. The Index rates companies according to their performance on eight criteria: management, influence, research and development, patenting, capacity, pricing, drug donations and philanthropy. We are pleased that our efforts to make our medicines more available have been recognised by the Index.

Additionally, during 2008 we were asked by Paul Hunt, the UN Special Rapporteur on the Right to Health, to contribute to a report he was preparing on GSK�s approach to access to medicines. We cooperated fully and a number of senior executives, including our former CEO, Dr JP Garnier, and our Chairman Sir Christopher Gent, were interviewed. We expect the report to be published in the first half of 2009.

1 www.plosntds.org/article/info:doi/10.1371/journal.pntd.0000317

Page 97 of 336




Corporate Responsibility Report 2008Case studiesPotential malaria vaccineMalaria kills more than one million people a year worldwide and makes millions more sick, most of them children living in sub-Saharan Africa. The international community urgently needs a safe and effective vaccine to control the disease. A vaccine, even with a partially effective profile, is a necessary component of a comprehensive malaria control programme and could potentially save hundreds of thousands of lives a year.

Our malaria vaccine candidate RTS,S is the most clinically advanced malaria vaccine candidate in the world. Since its discovery by GSK scientists in 1981, GSK has invested over $300 million of its own resources in progressing RTS,S to phase lll trials. A full set of clinical trials for a successful vaccine candidate can take 10 to 12 years, involve 50,000 to 100,000 volunteers, and cost $500 million or more. Few vaccine candidates survive this rigorous process, which is one reason why pharmaceutical research and development is so expensive. Creating a malaria vaccine for young children and pregnant women - one of the most important vaccine-development challenges today - is no exception.

In January 2001, GSK and MVI (PATH Malaria Vaccine Initiative), with support from the Bill & Melinda Gates Foundation, entered into a public-private partnership to develop an RTS,S-based vaccine for infants and children living in malaria endemic regions in sub-Saharan Africa. The clinical development of RTS,S is conducted by the Clinical Trial Partnership Committee, a collaboration of leading African research institutes, Northern academic partners, MVI and GSK with support from the Malaria Clinical Trial Alliance. To date, GSK has invested over $300 million of its own resources to develop the vaccine.

In December 2008, the New England Journal of Medicine published results of two separate studies demonstrating that the malaria vaccine candidate provides both infants and children with significant protection against malaria. In infants, data showed for the first time that the vaccine candidate can be administered as part of existing African immunisation programmes1. In children aged five to seventeen months, the candidate RTS,S/AS01 reduced the risk of clinical episodes by 53 per cent over an eight-monthfollow-up period2.

RTS,S is now entering pivotal phase lll studies, which will be the world�s largest malaria vaccine trial to date, involving 16,000 participants in 11 centres in Africa. Most of the places we are doing our trials have limited healthcare infrastructure. With partners we have therefore helped to set up these 11 clinics in seven African countries, with each training doctors, nurses and laboratory staff. We hope this infrastructure will remain long after the trials are completed.

Update August 2009

The Phase III trial of the RTS,S malaria vaccine candidate started in Bagamoyo, Tanzania, in May 2009.

The children who need this vaccine are among the poorest in the world. Price cannot be a barrier to access and we will work with supply organisations such as GAVI and UNICEF to ensure the price is set at the right level. We are also committed to working with the international community to mobilise the resources to fund the vaccine and the infrastructure needed to deliver it.

1. Abdulla S, Oberholzer R, Juma O, et al. Safety and immunogenicity of RTS,S/AS02D malaria vaccine in infants. N Engl J Med 2008;359:2533-44.

2. Bejon P, Lusingu J, Olotu A, et al. Efficacy of RTS,S/AS01E : clinical malaria in 5 to 17 month old children. N Engl J

Home Responsibility Access to medicines Case studies

Page 98 of 336




Med 2008;359:

Extending our product portfolio in the developing world � low- and middle-income countriesIn July 2008 GSK entered a partnership with the South African pharmaceuticals company Aspen. This is in line with our aim to grow a diversified business and operate in a way that is adapted to patient needs in low-and middle-income markets.

Aspen�s product portfolio covers a broad range of therapy areas relevant to the disease profile in developing countries, including: analgesics (for pain relief), anti-hypertensives (for high blood pressure), bronchodilators (for the treatment of asthma), anti-bacterials, anti-gout agents, anti-inflammatory agents, anti-depressants,anti-fungal agents, anti-histamines (for the treatment of allergies) decongestants, gastro-intestinal agents and dermatologicals (to treat skin conditions).

Through gaining access to Aspen �s current portfolio and future pipeline, GSK will be distributing more products and medicines needed by those in low- and middle-income countries. The long-term nature of this collaboration � initially beyond a 10 ten-year period � also underlines GSK �s philosophy of investing in a meaningful and sustainable manner in the developing world.

In January 2009 we announced an agreement with UCB S.A. to acquire its current marketed product portfolio across certain territories in Africa, the Middle East, Asia Pacific and Latin America. As a result of the agreement, GSK will acquire several leading pharmaceutical brands in a number of disease areas. These include Keppra for the treatment of epilepsy and Xyzal and Zyrtec for the treatment of allergic rhinitis.

The Aspen partnership and the UCB deal sit alongside the recent acquisition of Bristol Myers Squibb�smature pharmaceuticals businesses in Egypt and Pakistan and the two associated manufacturing facilities. Together, these deals will provide GSK with access to a renewable, high-quality and competitively priced pipeline of branded pharmaceuticals products that complements its existing portfolio of products, and will help drive patient access in low- and middle-income markets.

GSK vaccine eliminates Hib meningitis as a public concern in UgandaA national, four-year immunisation programme using GSK �s TritanrixHB Hib vaccine has eliminated Hib meningitis as a public health concern in Uganda, according to the Global Alliance for Vaccines and Immunisations (GAVI)1. Hib meningitis is a dangerous inflammation of the lining of the brain and spinal cord.GAVI, a public-private partnership that includes the World Health Organization and the World Bank and is supported by the Bill & Melinda Gates Foundation and others, says that the use of TritanrixHB Hib between 2002 and 2006 has reduced the number of incidences of the disease in Ugandan children to zero.

The news follows similar results in Bangladesh, Kenya, Chile and the Gambia, as well as Britain and the US, where the vaccine was shown to cut the number of cases of Hib meningitis by at least 88 per cent in a three-to-five year period.

Julian Lob-Levyt, Executive Director of GAVI, says the results are extremely positive. 2We can applaud a true success in controlling this deadly disease, which has too often claimed so many lives,3 he says.

Though developed countries have largely eliminated the disease, Hib vaccine distribution has been slow in poorer parts of the world due to financial and logistical problems, as well as limited awareness of the disease. In Uganda, the government obtained GAVI support to use 16.5 million doses of 5-in-1 vaccines, giving protection against Hib, diphtheria, pertussis, tetanus and hepatitis B. According to a study published in The Bulletin of the World Health Organization, the vaccination programme in Uganda is now preventing almost 30,000 cases of severe Hib disease and 5,000 child deaths every year. "The introduction of Hib vaccine has completely changed the epidemiology of bacterial meningitis in Uganda," says Adeodata Kekitiinwa, a paediatrician at Kampala's Mulago Hospital, who co-authored the study.

Hib kills about 400,000 children under the age of five every year, and is linked to around three million cases of illnesses that can result in long-term effects such as deafness, paralysis, mental retardation and learning disabilities. GAVI says that for every child with Hib meningitis in a developing country, there are thought to be five to ten others with Hib-related pneumonia, which is also preventable by vaccination.

1. GSK press release, March 2008

Page 99 of 336




Page 100 of 336




Corporate Responsibility Report 2008Q&AsHere we respond to questions raised by our stakeholders

Aren�t your access programmes just a drop in the ocean, given the scale of the healthcare crisis in the developing world?

The global healthcare crisis is extensive and complex, and the programmes of any single organisation are insufficient on their own. Political will and the effective investment of extra resources are required to support healthcare development and build infrastructure. GSK and the wider pharmaceutical industry do not have the mandate, expertise or resources to address the problem alone. Without a global partnership to address the issues, the efforts of any individual stakeholder will be inadequate. Primary responsibility for dealing with the crisis lies with governments, which can call on international agencies and NGOs for support. GSK is committed to playing a full part in partnerships with these organisations and is seeking new ways to make a contribution.

We focus our access programmes on specific areas where we think we can make a real difference. For example, we research and develop medicines and vaccines that are particularly needed in developing countries, and make them available at lower prices through preferential pricing arrangements and voluntary licences. We are also working to identify other ways that we can support the strengthening of healthcare systems through expanding our pricing policies, by being more flexible with our intellectual property and by investing in healthcare infrastructure.

Why are your medicines so expensive? Wouldn�t the most responsible thing you could do be to cut the price of your medicines?

Improving affordability of our medicines is important and we are taking steps to do more in this area. However, as Kevin de Cock, the Head of HIV/AIDS at the WHO, has said 2If you work in these countries it is very obvious, very quickly, that the elephant in the room is not the current price of drugs. The real obstacle is the fragility of the health systems, particularly in Africa.3 Therefore, unless action is taken to address the underlying problems of poverty and healthcare infrastructure, reducing prices alone will not solve the problem.

We have to price our products at a level that enables us to continue to fund R&D and discover the medicines and vaccines of the future. We also need to make enough profit so that GSK remains an attractive prospect for investors. While we want to make a difference, cutting prices too far would mean we undermine the long-term profitability and therefore sustainability of our business. Getting this balance right isn�t easy. The pricing pilots we have been conducting in recent years have taught us that there are no easy solutions. We believe that the new pricing policies we announced in 2009 will help to improve affordability for the world�s poorest and we will continue to learn and refine our approach as we roll out these policies.

Why are so few people with HIV/AIDS receiving treatment in the developing world?

There has been important progress in this area and now over three million people in the developing world are receiving treatment with life-saving anti-retrovirals. This has led to a decline in deaths caused by AIDS despite an increase in the number of people living with HIV. However, there is much more to do. The core issue is that many people in developing countries do not have access to effective healthcare services and are therefore unable to access medicines. Due to poverty, many clinics and patients are unable to pay for even the cheapest basic generic medicines.

The access issue is complex and multifaceted. Pricing of medicines is important, but we believe there are many other more significant barriers. Other factors that play a part are inadequate healthcare resources, lack

Home Responsibility Access to medicines Q&As

Page 101 of 336




of clinics and hospitals, poor distribution networks, low numbers of trained healthcare providers, high levels of patient illiteracy, significant stigma and discrimination, and a lack of political will and inadequate prioritisation of health in government budgets. This is why in 2009 we announced that 20 per cent of the profits we make from selling medicines in least developed countries will be reinvested into projects that strengthen infrastructure and widen access.

Why don�t you just donate your AIDS products to the world�s poorest?

In common with many other stakeholders, including Oxfam and the WHO, we do not believe that donations of ARVs offer a solution to the AIDS pandemic or for healthcare problems in the developing world more generally. This is a widespread crisis and one which requires a long-term commitment to treatment. This commitment cannot be assured through donations. As WHO Director General Margaret Chan has said 2Health systems are the tap root for better health. All the donated drugs in the world won�t do any good without an infrastructure for their delivery.3

In some limited circumstances donations may be appropriate, for example, in disease elimination efforts such as the Global Alliance to Eliminate LF. We have in the past donated ARVs to support UNICEF Prevention of Mother-to-Child Transmission programmes, and we continue to support collaborative clinical trials to assess the appropriate use of ARVs in resource poor settings.

Why doesn�t GSK extend its not-for-profit prices to middle-income countries?

Middle-income countries are not automatically eligible for the not-for-profit prices offered to Least Developed Countries (LDCs) and sub-Saharan Africa. However, they can access medicines at reduced prices. Middle-income countries can secure preferential prices through bilateral discussions with GSK and we are looking at ways to make this process easier.

We are focusing our preferential prices on the countries where the need is greatest and resources are most limited. It is widely accepted that in terms of support for improving healthcare services, these are the LDCs (as defined by the UN) and sub-Saharan Africa. We have been conducting pricing pilots in middle-incomecountries in recent years which have taught us that there are no easy solutions. However, we will continue to develop policies in middle-income countries that are more flexible on price and therefore more closely reflect a country �s ability to pay.

Why don�t you allow middle-income countries to buy your ARVs from generic manufacturers?

We have granted eight voluntary licences for our ARVs to African generic companies. Under these arrangements they can supply a number of middle-income countries in Africa. Middle-income countries are generally more economically developed than the least developed countries and often have a large and affluent middle-class. These countries also have large numbers of people living in extreme poverty and healthcare demands often outstrip available resources. We recognise that many middle-income countries need assistance. However, we believe a different approach is needed from the one we take in the world �spoorest countries and we will continue to refine our approach during 2009.

Our offer to supply products at not-for-profit prices in the world�s poorest countries is only sustainable if we can continue to make an adequate return on them in wealthier markets. Many middle-income countries are also growing commercial markets for GSK and represent an important source of future business for our industry. Our response in these markets must therefore be one that balances our commercial objectives with our global commitment to work with governments and other stakeholders to ensure that our medicines and vaccines reach as many as possible of those who need them.

We believe governments in middle-income countries can improve access by increasing investment in disease prevention and healthcare; eliminating taxation and tariffs on medicines; and creating an environment which allows a strong private healthcare sector to co-exist with public healthcare provision. We are working with governments to find creative ways to meet these goals.

Why don�t pharmaceutical companies work together to increase access to medicines?

We are working with the main industry associations on new initiatives to increase R&D and improve access, and we will continue to seek new opportunities to work in collaboration with all stakeholders, including other companies.

Page 102 of 336




Page 103 of 336




Corporate Responsibility Report 2008Research practicesWe are committed to focusing on the patient in everything that we do. Our R&D pipeline is central to our ability to meet patients � needs.

High ethical standards in R&D are key to protecting participants in our clinical research, ensuring the quality of our research, and maximising the benefits and minimising the risks of our products. High ethical standards are also essential for us to obtain regulatory approval for new medicines, and for patients and doctors to put their trust in our research programmes and products.

We aim to make our medicines as safe as possible by evaluating the risks and benefits at every stage from initial research, through to clinical trials and then after a new product is approved for sale.

We are committed to high levels of transparency about the results of our clinical research and use a number of reporting channels so that those who evaluate the efficacy and safety of our medicines or use our medicines can make informed decisions on their use.

We also recognise that biomedical research can raise ethical concerns including:

The use of emerging technologies, such as cloning and the use of stem cells

Animal research

The storage and use of human tissue

The protection of personal information about research participants

We participate in discussions on research practices and we regularly engage with academic scientists, regulators, policy makers and other stakeholders on related issues.

Home Responsibility Research practices

Page 104 of 336




Corporate Responsibility Report 2008Emerging technologiesResearch capabilities are expanding through the development of technologies related to areas of research such as stem cell and genetic research.

These advances are helping to expand the boundaries of scientific understanding. These technologies hold out hope for new ways to treat serious diseases as well as better ways to evaluate the risks and benefits of the medicines we develop. For example, advances in genetic research are beginning to enable identification of patients who are more likely to experience a side effect from a medicine. We use emerging technologies in our research and we are involved in collaborative research on these technologies.

We recognise that research using these emerging technologies can give rise to ethical concerns.

Here we outline our involvement and approach to:

The use of cloning technologies

The use of stem cells

Genetic research

Collaborative research on emerging technologies

Use of transgenic animals

Home Responsibility Research practices Emerging technologies

Page 105 of 336




Corporate Responsibility Report 2008Cloning technologies and stem cell researchCloning technologiesGSK uses cloning technologies to replicate molecules and cells for research. These technologies have provided better ways to evaluate compounds, enabling greater insight into the risks and benefits of potential medicines and helping to create better medicines for patients. This technology is a fundamental component of medicine discovery and development.

GSK does not clone animals. We do not use cloning technologies with the intention of reproducing entire human beings and we do not see a medical or research case for doing so.

Read our position statement on cloning technologies and stem cell research.

Stem cell researchWe recognise the importance of being clear about our approach to stem cell research and the standards we apply in this area of research.

We updated and published our approach to stem cell research in 2008. It sets out the standards we apply when using stem cells, including when using embryonic and foetal stem cells.

In 2008, we began a five-year collaboration with the Harvard Stem Cell Institute (HSCI). This includes a $25 million investment to support research at Harvard University and a number of affiliated hospitals in the areas of neuroscience, heart disease, cancer, diabetes, musculoskeletal diseases and obesity. The collaboration is overseen by a joint steering committee made up of HSCI and GSK scientists and managers.

We are also a founding member of the Stem Cells for Safer Medicine (SCSM) initiative in the UK. SCSM aims to develop a bank of human cell lines to be used in early medicine discovery. This will provide early identification and elimination of potential toxicity issues before clinical testing. A number of public sector organisations are contributing to the initiative including the Department of Health, the Department for Innovation, Universities and Skills, the Scottish Government, the Medical Research Council and the Biotechnology and Biological Sciences Research Council. An independent ethics review board is being established to review the SCSM ethics policy.

Read more about how we are collaborating in research on emerging technologies.

Home Responsibility Research practices Emerging technologiesCloning technology and stem cell research

Page 106 of 336




Corporate Responsibility Report 2008Genetic researchGenetic variation underpins many aspects of human health, such as why some people get certain diseases while others do not, at what age diseases manifest themselves and how fast they progress. In the last year, more genes have been identified for common human diseases than in the cumulative history of genetics research. Diseases for which genetic risk factors have been identified include diabetes, heart disease, obesity, several cancers, asthma and a number of autoimmune disorders. GSK researchers have led or contributed substantially to several of these findings. These discoveries, and others to come, offer promise for the development of innovative new medicines.

Individual differences in genes also affect how people respond to medicines. Differences in genes can explain why some patients experience adverse responses to certain medicines while others enjoy benefits without such effects; why some individuals require greater doses of medicines than others to achieve the same level of efficacy; and why some groups of individuals respond well to treatment while others do not. GSK scientists are using emerging genetic information to study how medicines can be differentiated to suit groups of patients with different genetic characteristics.

Successful genetics research requires close collaboration between organisations with different areas of expertise. We are engaged in a number of research projects involving academic partners, regulatory agencies and other pharmaceutical companies. Read about our involvement with the Serious Adverse Events Consortium (SAEC) collaboration.

We recognise that people have concerns about some of the applications and standards of genetic research. We aim to address these concerns by being transparent about how and why we conduct genetic research. Any genetic analysis during GSK clinical trials is only undertaken after seeking and obtaining informed consent from the patient. This procedure includes providing information on the purpose and scope of the research and who has access to the genetic research data.

We believe that the pharmaceutical industry shares responsibility with governments for helping to identify and develop policy on genetic research. We refer to guidance from national and international groups to inform our genetic research activities such as the European Medicines Evaluation Agency, the US Food and Drug Administration and the Council for International Organisations of Medical Sciences.

Home Responsibility Research practices Emerging technologies Genetic research

Page 107 of 336




Corporate Responsibility Report 2008Collaborative research on emerging technologiesNew scientific knowledge and technologies can be developed for application to medicine discovery and development through collaborative research that combines resources, expertise and know-how from several partners. The benefit of this research is often realised by making the results widely available to the research community.

For example, we are an active participant in the Innovative Medicines Initiative (IMI) a public-privatepartnership set up by the European Commission and the pharmaceutical industry through the European Federation of Pharmaceutical Industries and Associations (EFPIA). The IMI will support and stimulate collaborative research in Europe involving pharmaceutical companies, smaller bioscience companies, academia, regulators and patient groups with the aim of removing barriers to the discovery and development of new medicines.

Read more about our investment in R&D and new technologies.

More on our partnerships and academic collaborations.

Home Responsibility Research practices Emerging technologiesCollaborative research on emerging technologies

Page 108 of 336




Corporate Responsibility Report 2008Animal research

Animal studies remain a small but vital part of our research.They are the only method that can demonstrate the effects of a potential new medicine in a living body before it is used in humans. In addition, research in animals can provide vital information about the causes of diseases and how diseases may develop.

Safety regulations require us to test all new medicines on animals before they are tested in clinical trials using humans. Most vaccines have to be tested on animals each time a new batch is produced.

Our non-medicinal Consumer Health products or ingredients, for example dietary supplements, are not tested on animals unless there is a specific demand from a regulatory authority or if we determine that a study is needed to support safe use. GSK does not conduct animal testing on our Nutritional Healthcare products or products classified as cosmetics, for example toothpastes marketed in the European Union.

When animals are necessary for our research, we are committed to acting ethically, providing for the animals � health and wellbeing and practising good animal welfare.

Our approachGSK has animal research laboratories in Europe, Asia and the US. Some animal research is conducted by external contractors on our behalf, representing around six per cent of our total animal use. We estimate that animal research accounts for around five per cent of all GSK research expenditure.

Almost all the animals used by GSK are rodents, mainly rats and mice. We also use rabbits, dogs, non-human primates, fish, ferrets, chickens, pigs, cats, sheep and goats. Together these account for just over one per cent and are listed in order of magnitude of use.

Ultimately GSK would like to see the important benefits of research being achieved and applied to humans without the need for animals in research. We do not believe this can be achieved in the foreseeable future. Our goal is to use animals only when scientifically necessary, use as few as scientifically feasible and to minimise pain and distress. Therefore GSK remains committed to the 3Rs.

The 3RsA key aspect of animal welfare is covered by what the biomedical community refers to as the three Rs (3Rs). These Rs are:

Replacing research using animals with non-animal alternatives or species of the lowest possible order (phylogenetically)Reducing the number of animals used in experiments and still obtaining the same information as in a larger studyRefining techniques to minimise pain and distress and maximise the welfare of animals

Our scientists always try to devise experiments that do not require any animals. When that is not possible, the researchers will work with others to design an experiment so that we obtain the necessary information from the smallest number of animals possible, with the least effect on individual animals.

We implement the 3Rs by using advanced scientific methods, training, raising awareness, and sharing and encouraging best practice. For example, we use ultrasound for imaging heart disease in rats and we have a forum for discussion on global principles for animal housing. Read more on recent GSK advances in replacing, reducing and refining animal use

Home Responsibility Research practices Animal research


Page 109 of 336




p g g g

In addition we encourage a 3Rs culture at GSK through:

Regular training for staff involved in the care and use of animalsReview of study designs by an ethical panel which considers the 3Rs and whether alternatives to animal studies are possible prior to the approval of studiesRefining techniques to minimise pain and distress and maximise the welfare of animalsOur internal 3Rs website which champions advances in refinement, reduction and replacement of animal use in medicine discovery and development, and promotes their application across R&DA news bulletin on advances in the 3Rs which is updated on a rolling basis and is easily accessible from the 3Rs websiteOur internal Animal Welfare Awards for employees who have made outstanding advances in implementing the 3Rs

Non-human primatesOur policy requires that studies involving animals must use the lowest possible order (phylogenetically) of animal appropriate for the research study. Occasionally, non-human primates may be the only animals where the anatomy and/or physiology of a disease is similar to that in humans. Sometimes only human and non-human primates will be affected by or respond to a potential medicine or vaccine; for instance, a new medicine may be based on a molecule produced by primates, including humans, and would be destroyed by the immune systems of other species. We therefore use non-human primates, only if no species of lower neurophysiological sensitivity is appropriate. The two most common non-human primates species used in research are macaques and marmosets. Of the animal research that we carry out, less than 0.5 per cent involves non-human primates.

Transgenic (genetically modified) animalsGenetically modified animals, also known as transgenic animals, have been genetically adapted by scientists to create new characteristics. Most transgenic animals (over 95 per cent) used in biomedical research are mice. Transgenic strains of animals are developed to answer specific compound or disease-relatedquestions as part of the medicine discovery process. For example, transgenic mice that model Alzheimer�sdisease have been fundamental in biological research, new compound development and target validation.The use of such transgenic models in mice can sometimes replace the need for studies in higher order animals.

GSK worldwide standardsWhile recognising differences in country-specific regulations, GSK achieves worldwide standards by using core principles for the care of laboratory animals. These principles establish our basis for animal work conducted by or on-behalf of GSK. In addition, all GSK facilities and external laboratories conducting research on our behalf must follow all legal and regulatory requirements. In the UK these regulations are the responsibility of the Home Office. In Europe animal research comes under Directive 86/609/EEC and in the US is covered by the Animal Welfare Act 2006.

We also continue to seek voluntary accreditation from recognised agencies such as the Association for the Assessment and Accreditation of Laboratory Animal Care International (AAALACi).

Communicating our approachSome people hold strong views on animal research and testing. We believe it is important to explain the need for animal research and testing and to be transparent about what we do.

Many of our laboratories host visits from schools, colleges, animal welfare organisations and others. We engage regularly with animal welfare organisations and our investors, as well as contributing to the debate in the media.

ProtestWe accept the right of lawful protest against animal research as a part of a free society, but condemn the use of violence and intimidation by some who are opposed to animal use. We welcome the shift away from extremism to informed debate.

Page 110 of 336




��

Page 111 of 336




Corporate Responsibility Report 2008Animal research

The 3RsThe great apes family comprises gorillas, chimpanzees, orangutans and bonobos. One species of ape, Pan troglodytes, also known as the �common chimpanzee�, has been used in biomedical research for over three decades. The other great apes are not used in biomedical research. In 2008 we took a voluntary decision to no longer carry out research in great apes. Read more in our position statements on the use of non-humanprimates and great apes in research.

As well as the ban on the use of great apes, recent GSK advances in replacing, reducing and refining animal use include:

Implementing a polio vaccine test at the bulk manufacturing stage that uses transgenic mice instead of non-human primates. These are mice that have been genetically altered to make them susceptible to the polio virus

Decreasing the number of animals needed for vaccine testing. For example, we included an in vitro (non-animal) test in the regulatory submission for our new vaccine against the Human Papillomavirus, Cervarix.This means that for many markets new batches of Cervarix will not need to be tested in animals

Developing a transgenic mouse model that mimics an accelerated form of Alzheimer�s disease to replace primates as a primary model for this disorder. Fundamental biological research, compound development and target validation have been carried out using this mouse model, facilitating greater understanding of this disorder and the potential for future therapies

Implementing new technology to collect blood samples in animal studies. This approach enables analysis to be carried out on much smaller blood samples than traditional techniques. This enables quality data to be obtained using fewer animals

Working with governments to change regulatory requirements so fewer animals are required for routine testing. A proposal to reduce animal testing originating from GSK �s vaccines business was submitted to the European Vaccine Manufacturers Association and later presented to the European Directorate for the Quality of Medicines in 2007

Developing in vitro alternatives to safety tests which check the potential impact of pharmaceutical process materials on workers � skin and eyes. No animals have been used in the evaluation of dermal or eye irritation for worker safety purposes since 2006

Donating our collection of information on commonly used blood collection methods to the UK National Centre for the 3Rs (NC3Rs). Our donation was the founding part of the NC3R�s blood sampling website. This UK site is used by many laboratory staff to choose the most appropriate technique for the humane and efficient sampling of blood

Our internal Animal Welfare Award recognises work that is demonstrably above and beyond the very high standards of care, experimental design and implementation expected in GSK from all employees involved in animal experimentation. To receive the Award, the contribution should have tangible benefits in terms of one or more of the 3Rs and should make a difference to how animal experimentation is conducted at GSK or how animals are routinely cared for.

Recent recipients of our internal Animal Welfare Award have been:

Home Responsibility Research practices Animal research


Page 112 of 336




p

A team in UK for implementing blood-spot technology in preclinical toxicokinetic (TK) studies. Using this technology meant researchers needed significantly smaller volumes of blood, which therefore meant fewer animals were needed for TK studies

A member of the Neuroscience department for developing and assessing an alternative method of administering medicines to rats. This replaces the previous method that required restraint during dosing and allows us to train rats to drink the test substance directly from a syringe.

A team in Italy who developed an innovative nicotine self-administration animal model for pharmacological treatments aimed at smoking cessation. It resulted in a 40-50 per cent reduction in the number of animals needed per study

Number of animalsIn 2008 the absolute number of animals used in our laboratories was nine per cent lower than in 1994 while R&D activity has tripled in the same period.

We estimate that the proportion of total GSK animal research conducted by external contractors was lower in 2008 at 6.2 per cent, compared to 7.9 per cent in 2007.

*This does not include animals used by external contractors on our behalf. Of the animals used by external contractors on our behalf in 2008, 88.7% were rodents and rabbits.

Change in R&D activity compared to change in number of animals used by GSK*

* These data do not include animal research conducted by external contractors on our behalf. R&D activity combines our R&D budget and our vaccine sales, the two main drivers of animal use.

We started separately estimating our external animal use in 2002 and to 2008 have recorded external animal use as representing 3.2%, 4.3%, 6.7%, 6.3%, 8.2%, 7.9% and 6.2% of total animal use. The range of external interactions that may involve GSK, directly or indirectly, in animal use is so diverse, and is reported to the regulators by third parties, that we refer to these data as an estimate.

Animals used by GSK in 2008 (per cent)*

Mice 71.1

Rats 20.5

Guinea pigs 7.1

Other rodents 0.2

Rabbits 0.4

Others 0.7

Page 113 of 336




AAALACi accreditationOur animal laboratories in Belgium, Italy, Spain, the UK and the vast majority of those in the US are accredited by the Association for Assessment and Accreditation of Laboratory Animal Care International (AAALACi), a private, non-profit organisation that promotes the humane treatment of animals in science through voluntary accreditation and assessment programmes. To achieve AAALACi accreditation, an organisation must go through a rigorous assessment by the association which reviews facilities, workers and animal care. To maintain accreditation annual updates and on-site reviews on a tri-annual basis are required. These site visits are conducted by members of the AAALAC Council and other trained professional staff.

This accreditation covers over 90 per cent of the animals housed in GSK-owned laboratories and we are working to extend this accreditation to our other animal facilities.

Our plansGSK is committed to the 3Rs; a current initiative includes a review of animal models across the business. This will look at the types of studies being performed to ensure the most suitable model is being used and that the appropriate numbers of animals are involved. Our R&D leadership team will review outcomes of this analysis and make recommendations for further initiatives in 2009 and beyond.

��

Page 114 of 336




Corporate Responsibility Report 2008Human tissue researchResearch using human tissue or human biological samples is fundamental to the discovery, development and safety monitoring of GSK medicines.

It is vital that this research is conducted in a manner that respects the rights of research participants and meets legal and ethical obligations.

The UK Human Tissue Act 2004 makes consent the fundamental legal requirement for the collection, use and storage of human tissue in the UK. This was introduced in 2004 following events at Alder Hey Hospital and Bristol Royal Infirmary where human tissue was taken, used and stored without consent.

In 2008, we introduced a policy which applies the principles of the UK Human Tissue Act on a global basis for research conducted, sponsored, supported or funded by GSK. This will ensure that the stringent ethical requirements of the UK law are applied wherever research is conducted using human biological samples.

Home Responsibility Research practices Human tissue research

Page 115 of 336




Corporate Responsibility Report 2008Medical governanceGSK is committed to the highest standards of ethical medical practice. This supports our mission to improve the quality of human life by enabling people to do more, feel better and live longer.

Medical governance at GSK is the system of principles, policies and accountabilities that ensures we apply generally recognised principles of good medical science, medical integrity, ethics and standards. It provides a framework to embed the following principles:

Patient safety is the fundamental operating principle for GSK ahead of commercial or other interests

Our clinical research is conducted in an objective, scientific and ethical manner which protects and informs patients

Promotional practices and the information we provide on our products is ethical, accurate and balanced so that our medicines are used appropriately to benefit and minimise the risks for patientss

Medical governance across GSK encompasses the principles, policies and accountabilities of three areas:

We have a framework for medical governance across all our businesses and our Chief Medical Officer (the most senior physician at GSK) has responsibility and authority for establishing an effective medical governance system. Our Corporate Executive Team members are responsible for the performance of, and compliance with this system within their areas of responsibility.

Our Medical Governance Executive Committee establishes policy for medical governance, subject to approval from the Corporate Executive Team. It also ensures that our medical governance systems are operating effectively. Regional medical directors together with their regional presidents and the country/territory medical directors, ensure our policies and systems for medical governance are understood and complied with in the countries for which they have responsibility.

Read about our patient safety governance framework.

Home Responsibility Research practices Medical governance

Page 116 of 336




Corporate Responsibility Report 2008Clinical researchWe carry out a series of clinical trials to evaluate investigational medicines for their potential to become new medicines. The effect of the potential medicine will often be compared against marketed medicines or in some cases an inactive substance (a placebo). Successful clinical trial programmes usually have three or four phases, and safety is evaluated throughout the clinical trials process.

We have rigorous procedures and assurance processes to ensure our clinical trials of our medicines are conducted according to the Good Clinical Practice (GCP) guidelines developed by the International Conference on Harmonisation (ICH) and the principles contained in the World Medical Association Declaration of Helsinki on the �Ethical Principles for Medical Research Involving Human Subjects (2008)�.GSK-sponsored clinical trials are conducted to the same ethical standards irrespective of whether they take place in developed or developing countries.

The safety of those who participate in our clinical trials is of paramount importance. Our informed consentprocedure ensures that all volunteers are informed of aspects of the trial that are relevant to their decision to participate.

All GSK employees involved in conducting trials receive training on regulatory requirements and GSK policies and trials are subject to audit by our internal audit department and regulators.

Home Responsibility Research practices Clinical research

Page 117 of 336




Corporate Responsibility Report 2008Planning and approvalA protocol is developed for each clinical trial. Protocols set out the purpose of the research and explain how the trial will be conducted and the results analysed � including details of the dosage and duration of treatment and the number of participants required. The protocol also defines the measurements that will be used to evaluate the safety and efficacy of the medicine, and appropriate procedures should participants wish to withdraw from the study.

Trial protocols are reviewed by government regulatory agencies in relevant countries when required. Protocols are reviewed by an independent ethical review committee of lay people, medical professionals and scientists. This committee also reviews and approves the information to be provided in the process of seeking informed consent. Ethics committees have the power to reject or stop a clinical trial.

Home Responsibility Research practices Clinical research Planning and approval

Page 118 of 336




Corporate Responsibility Report 2008Informed consentInformed consent means that a potential clinical trial participant voluntarily confirms their willingness to participate after being informed of aspects of the trial that are relevant to their decision to participate. It is documented by means of a written, signed and dated informed consent form.

Informed consent for a clinical trial involves more than just reading and signing a consent form. There are two essential elements; a process to communicate the information and answer any questions, and signed documentation.

The informed consent information is written and communicated in a non-technical style so that a lay person can understand it. It includes a summary of the clinical trial (including its purpose, the treatment procedures and schedule, potential risks and benefits, alternatives to participation and provisions for data protection) and explains participants' rights (including voluntary participation and the right to end participation).

Researchers and health professionals know that a written document alone may not ensure that someone understands what participation means. Therefore, the research team discusses with the person the trial's purpose, procedures, risks and potential benefits, and the participants' rights. If the person decides to participate, the team will continue to update them on any new information that may affect their willingness to continue in the trial. Before, during and even after the trial, the person is given opportunities to ask questions and raise concerns. Thus, informed consent is an ongoing and interactive process.

There may be special cases where obtaining someone �s informed consent is not possible such as emergency research scenarios, or when children are below the age of legal consent. In these circumstances consent is sought from someone who is allowed to provide it under local laws and regulations. In situations when someone cannot read but is able to speak and understand the local language, an impartial witness is present during the informed consent process to confirm in writing that the information in the informed consent form was accurately explained and that the potential participant was able to ask questions and gave consent voluntarily.

Home Responsibility Research practices Clinical research Informed consent

Page 119 of 336




Corporate Responsibility Report 2008Post-trial treatmentIn general, we are not responsible for the funding of nationally licensed medicines after a trial, because this is the responsibility of governments and other providers as part of national healthcare systems.

However, before beginning trials in diseases or conditions that will continue after the completion of the trial we must be assured that the healthcare system is able to provide, and will take responsibility for, the continued care of patients. In exceptional circumstances nationally licensed medicines may be funded by GSK after the trial so that they can be made available to trial participants who derived a measurable medical benefit. We will continue to fund the medicine until it is funded through the normal healthcare infrastructure or the patient no longer derives a medical benefit.

There may be circumstances when there is a compelling medical rationale for patients to continue to receive an investigational medicine after the clinical trial. In this case, post-trial treatment may be provided in a clinical trial or through expanded access programmes which enable appropriate oversight and reporting of adverse events. In these circumstances, GSK will fund the investigational medicine for as long as the patient benefits from it or until the compound is approved and licensed in that country.

Read more in our public policy on Clinical trials in the developing world

Home Responsibility Research practices Clinical research Post-trial treatment

Page 120 of 336




Corporate Responsibility Report 2008Clinical trials in the developing worldAll GSK clinical trials, wherever they are carried out, are conducted to the same high standard.

GSK does not conduct clinical trials in countries when we know at the outset that there is no intent to pursue registration and make the product available for use in that country.

Additional steps may be needed to ensure that trials in some of the least developed countries are conducted according to the Good Clinical Practice (GCP) guidelines. For example, matching the objectives of informed consent to local culture may be necessary, for instance by involving local leaders and/or family members.

In some circumstances capacity may be provided to help develop a certain skill or competence, or for general upgrading of performance ability, which will facilitate the prospective conduct of clinical research activity not only for GSK but also the broader community.

Read more about post-trial treatment.

Read our position statement on clinical trials in the developing world.

Home Responsibility Research practices Clinical researchClinical trials in the developing world

Page 121 of 336




Corporate Responsibility Report 2008Public disclosure of clinical research

Pharmaceutical companies are legally required to disclose all relevant data from clinical trials to the appropriate regulatory authorities when seeking approval for a new medicine.

After approval, sponsors have a continuing obligation to provide regulatory authorities with updated safety information from clinical trials. Read more about patient safety

Safety and efficacy information is provided to doctors through prescribing information which is approved by regulators.

Public disclosure of our research is fundamental to advancing medical science and informing prescribers and patients about scientific findings relating to our medicines. Our Clinical Trial Register was launched in 2004 and is designed to supplement prescribing information and publications in the scientific literature. It contains data relating to marketed medicines and serves as a resource for researchers, medical professionals and the public to use alongside locally approved prescribing information. An improved ClinicalStudy Register, launched in 2008, has replaced the previous Register and now also includes protocol summaries and enhanced searching capabilities. Read a case study on how the new register is helping to improve access to clinical trials information.

Read our position statement on disclosure of clinical trial information

��

Home Responsibility Research practices Public disclosure of clinical research


Page 122 of 336




Corporate Responsibility Report 2008Public disclosure of clinical research

At the end of 2008 there were protocol summaries of all GSK actively recruiting clinical trials on ClinicalTrials.gov, 180 in total. This is a registry of clinical trials conducted around the world and provides information about a trial's purpose, who may participate, locations and contact details for more information.

At the end of 2008 there were 3,273 clinical trial summaries on our Clinical Study Register. This includes clinical trials of our major marketed products which have been completed since the formation of GSK in 2000, or that were completed before this and are likely to inform medical judgement.

Our objective is to disclose the trial results summaries for all new products on our Register within 12 months of the product reaching the market. We aim to disclose the results of trials completed after a product is approved for marketing within one year of trial completion. We met this objective in 2008.

Update August 2009

An internal audit has subsequently shown that during 2008 the results of a small number of trials were not posted to the Register within 12 months of the product reaching the market. Following the audit the results of these studies were posted to the Register in July�$%%/��0��+��-"+� ��,��+�"+��+� for collecting and posting of trial results and expect to meet the objective for 2009

In 2008, a new Clinical Study Register replaced the previous Register and now also provides protocol summaries and enhanced search capabilities to users.

Number of summaries of GSK clinical trials on the GSK Clinical Study Register (cumulative total)

Important steps to build on GSK �s commitment to the transparency of our clinical research were taken in 2008. We have committed from January 2009 to:

Posting information about other types of GSK �s clinical research that evaluates our medicines on the GSK Clinical Study Register. We are adding GSK �s observational research, meta-analyses and studies of terminated compounds to our current commitment of posting information related to all our clinical trials (phase l-lV) of marketed medicines. In addition we are adding the names of investigators who participate in

Home Responsibility Research practices Public disclosure of clinical research


Page 123 of 336




our clinical research

Ensuring that all our clinical research is either published as manuscripts in peer reviewed journals or, when studies are not published, providing context and interpretation via the GSK Clinical Study Register to supplement the result summary which is posted

This will ensure our studies are made publicly available irrespective of whether the results are perceived to be positive or negative for our medicines. Our progress in meeting this commitment can be monitored by external audiences, as the GSK Clinical Study Register will include protocols or plans for our research as studies are initiated, and summaries of the results and references to publications following completion.

��

Page 124 of 336




Corporate Responsibility Report 2008Patient safetyEnsuring the safety of our medicines and medical devices is critically important for the health and wellbeing of patients and the success of our business.

All medicines have potential risks as well as benefits, although not everyone who takes a medicine will experience side effects. It is important that we identify, evaluate and minimise safety concerns to ensure that the overall benefits of a medicine outweigh any risks.

We strive to serve patient interest by promptly detecting potential safety issues with our products and communicating with regulators so that appropriate decisions can be made and actions taken.

Product safety is assessed in clinical trials before a product can be approved for marketing. Sometimes adverse events (potential safety issues) occur after approval when a product is being used by large numbers of patients. We have policies and a governance framework in place to help us detect and act on any adverse events. We have a dedicated team of scientists and healthcare professionals across the world which monitors and communicates safety issues to regulatory authorities.

We are also investing in genetic research to help predict how individual patients respond to a medicine. In the future this will help healthcare providers prescribe safer and more effective medicines.

Read about our patient safety governance framework and how we collect and report safety data.

Home Responsibility Research practices Patient safety

Page 125 of 336




Corporate Responsibility Report 2008Patient safety governance frameworkWe have a Global Safety Board (GSB) which makes decisions on product safety issues. The Board is led by the Chief Medical Officer and composed of senior physicians and scientists. Its role is to:

Oversee the safety of all investigational and marketed medicinesApprove the first administration of investigational medicines to humansDefine the doses and duration of treatments that are considered safeApprove the progression of investigational medicines into pivotal trials (these are trials which provide the primary data on which regulatory approval is based)Assess any issues related to patient safety that arise during product development or marketing

Three of our central departments are responsible for recording, investigating and evaluating adverse events and reporting them to the relevant regulatory authorities, for example the US Food and Drug Administration (FDA) or the European Medicines Evaluation Agency (EMEA):

Global Clinical Safety and Pharmacovigilance team (GCSP), part of GSK Research & Development, responsible for the safety evaluation of all our pharmaceuticals and devicesGSK Biologicals Clinical Safety and Pharmacovigilance department, part of our vaccines business, responsible for the safety evaluation of GSK vaccinesConsumer Healthcare Product Safety group, part of our consumer healthcare business, responsible for the safety evaluation of consumer healthcare productsWe require that all GSK staff immediately report any issues relating to the safety or quality of our medicines. Read more about our expectations in our Employee Guide for Business Conduct.

Read about our medical governance.

Benefit-risk management

We assess the balance between the benefits and risks of a particular medicine throughout its lifecycle �from early development, during clinical trials, and once the product is on the market.

We evaluate and document all available safety information to build a detailed benefit-risk profile of each product. We use this information to develop a benefit-risk management plan, which identifies ways to improve a product �s benefits and minimise any risks. We review and update plans regularly during clinical development and for a period after a product is approved for marketing.

Back to top�

Home Responsibility Research practices Patient safety Patient safety governance framework

Page 126 of 336




Corporate Responsibility Report 2008Collecting and reporting safety dataWe receive information on adverse events from several sources, including:

Unsolicited reports from health professionals and patients

Post-marketing trials or observational studies

Investigators who submit clinical study reports

Regulatory authorities

Medical and scientific literature

Newspapers and other media

Each GSK employee is responsible for reporting any adverse event they become aware of. Any adverse events that occur are recorded on our global safety database and clinical trial database and are investigated by our clinical and pharmacovigilance teams. We report potential safety issues to regulatory authorities on a regular basis.

Each country manager is responsible for ensuring the collection of safety information and reporting this to the relevant central safety department and to the local regulatory authority. During 2008, as part of our 2008 Management Certification process, over 14,000 managers acknowledged their compliance with our policy on Adverse Event Reporting which specifies that each GSK employee is responsible for reporting any adverse event they become aware of during the conduct of their work. We have added an Adverse Event Reporting button to the front page of myGSK, our intranet site, to make it easier for employees to report any adverse event they may learn about.

Regulators in some countries are also publishing information on adverse events on the internet. For example, data for products marketed in the UK are available via the Medicines and Healthcare products Regulatory Agency. Some safety data are also available in Canada, while in the US the Food and Drug Administration has made the information in its database more accessible to the public by publishing a quarterly report of potential safety issues that it is investigating further.

In 2008, research on our diabetes product Avandia continued and a new, FDA required, cardiovascular outcome study was designed and will be initiated in 2009. There was also a combined FDA Advisory Committee review of respiratory products containing long-acting beta2 agonists.

Read more on the questions raised about Avandia.

Read more on questions about the safety of our products containing long-acting beta2 agonists.

Read about our medical governance.

Read our position statement on Pharmacovigilance��

Responding to adverse events

Adverse events affect the benefit-risk profile of a product and corrective actions may be needed to minimise the risk. This can include carrying out further clinical trials, modifying the prescribing information, communications to physicians and other healthcare providers or establishing specific methods to minimise risk. Some products are subject to limited distribution programmes, for prescription

Home Responsibility Research practices Patient safety Collecting and reporting safety data

Page 127 of 336




by specialist doctors only. In certain cases it may be appropriate to stop a clinical trial or withdraw a product from the market. Our global labelling committees review and approve the prescribing information for all our products and ensure this is updated when appropriate.

Page 128 of 336




Corporate Responsibility Report 2008Responding to questions about AvandiaAvandia is our leading treatment for type 2 diabetes. In 2007, a meta-analysis published in the New England Journal of Medicine1 and GSK �s own meta-analysis2 (submitted to the FDA and other regulators in 2006) were at the centre of a debate on whether Avandia may be associated with an increased risk of myocardial infarction and death from cardiovascular causes.

Following an FDA Advisory Committee meeting, the FDA approved updated prescribing information for Avandia, including new text in the existing boxed warning, in November 2007. This updated prescribing information summarised data from an FDA meta-analysis of myocardial ischemic events that suggested a risk associated with Avandia, and from three long-term clinical trials3 comparing Avandia against both placebo and other oral anti-diabetes medicines that did not confirm or exclude the risk. This revised prescribing information included that �in their entirety, the available data on the risk of myocardial ischemia are inconclusive �.

In 2008, research involving Avandia continued, including the cardiovascular outcome study called RECORD, for which results will be available in 2009. In addition, GSK worked to design an FDA-required cardiovascular outcome study of Avandia, to be called the TIDE study, to begin in 2009.

Update August 2009

Results of the cardiovascular outcome study RECORD were �"�#��9��$%%/��:;<=:>��large, prospective, randomized, controlled study that was initiated in 2001, and designed to compare cardiovascular outcomes of patients on Avandia added to metformin or sulfonylurea to those on metformin and sulfonylurea. The study showed that the combined endpoint of cardiovascular hospitalization or cardiovascular death (which includes heart attack, congestive heart failure and stroke) was not statistically different between the two groups after an average of 5.5 years of therapy.4

The TIDE study has started in 2009 as planned.

All medicines, Avandia included, carry risks as well as benefits. Because type 2 diabetes is chronic, relentlessly progressive and a life-threatening disease, and because physicians often need to prescribe two or three medicines to help their patients maintain their blood sugar levels, having an array of treatment options is important. GSK believes it is important that Avandia is available to support effective treatment of type 2 diabetes.

1. S. Nissen & K. Wolski, Effect of Rosiglitazone on the Risk or Myocardial Infarction and Death from Cardiovascular Causes, N. Engl. J. Med. 2007; 356: 2457-71

2. A. Cobitz, et al, A retrospective evaluation of congestive heart failure and myocardial ischemia events in 14237 patients with type 2 diabetes mellitus enrolled in 42 short-term, double-blind, randomized clinical studies with rosiglitazone, Pharmacoepidemiology and Drug Safety, 2008; 17: 769�781

3. i) P. Home, et al, Rosiglitazone Evaluated for Cardiovascular Outcomes - An Interim Analysis, N. Engl. J. Med. 2007; 357: 28-38; ii) S. Kahn, et al, Glycemic Durability of Rosiglitazone, Metformin, or Glyburide Monotherapy, N. Engl. J. Med. 2006; 355: 2427-43; iii) The DREAM (Diabetes REduction Assessment with ramipril and rosiglitazone Medication) Trial Investigators, Effect of rosiglitazone on the frequency of diabetes in patients with impaired glucose tolerance or impaired fasting glucose: a randomised controlled trial, Lancet, 2006; 368: 1096-105.]

Home Responsibility Research practices Patient safety Collecting and reporting safety data Responding to questions about Avandia

Page 129 of 336




?��@��-��:��,��A��; ��*�+ Cardiovascular Outcomes in oral agent combination therapy for type 2 diabetes (RECORD): a multicentre, randomised, open-label trial, Lancet, 2009, 373: 2125-2135.

Back to top�

Page 130 of 336




Corporate Responsibility Report 2008Questions about the safety of our products containing long-acting beta2 agonistsLong-acting beta2 agonists, known as LABAs, are daily controller medicines that relieve and help prevent airway constriction. Airway constriction is one of the two main components of asthma. LABAs do not treat the other main component of asthma � inflammation. This can be treated by another type of daily controller medicine called an inhaled corticosteroid (ICS). LABAs, including GSK �s product Serevent, should not be used alone in the treatment of persistent asthma. Leading treatment guidelines recommend that LABAs be used for appropriate patients with asthma only in combination with an ICS.

GSK makes two products containing the LABA salmeterol. Seretide/Advair is a combination of salmeterol and the ICS fluticasone, while Serevent contains salmeterol alone.

In December 2008 a combined Advisory Committee to the US Food and Drug Administration reviewed the benefit-risk profile of medicines containing LABAs in children and adults with asthma. This review included all LABA-containing products indicated for use in treating asthma, not just GSK �s products, and addressed lingering concerns that LABAs may increase the risk of asthma-related death, as current product labels prominently warn. The Advisory Committee makes recommendations to the FDA, which then makes the final decision on any actions required.

For Seretide/Advair, the Committee unanimously voted that the benefits of Seretide/Advair outweigh the risks for patients 18 years and older. The Committee also voted in favour of a positive benefit-risk profile in younger patients, although the individual votes were mixed. For Serevent, the Committee found that the benefits do not outweigh the risks for the treatment of asthma. Concerns were expressed about the potential for Serevent to be used alone in the treatment of asthma, contrary to the current prescribing information, in a way that would make the benefit-risk profile unfavourable. In contrast, Seretide/Advair is a combination therapy of a LABA and an ICS, so combination use is assured.

Although GSK acknowledges concerns that use of Serevent without an ICS is not in the best interests of asthma patients, we favour the option of allowing dual therapy using separate inhalers. Use of separate inhalers is an important treatment option for asthma patients who need an alternative ICS to fluticasone (the ICS contained in Seretide/Advair), or the flexibility of ICS doses beyond those available in a combination product. It is also important for asthma patients who receive more favourable reimbursement for separate inhalers.

GSK believes that with appropriate labelling and proactive communication of the risks of using a LABA alone, the potential for misuse of Serevent as monotherapy can be acceptably reduced so that dual therapy using separate inhalers remains available for asthma patients who need it.

In September 2008, before the Advisory Committee meeting, GSK submitted a proposed label change to the FDA for Serevent to clarify that use in asthma patients must be in combination with ICS, in line with prescribing information in all countries in which Serevent is marketed.

We are awaiting the outcome of the FDA �s consideration of GSK �s proposed label change, and of the Advisory Committee�s review. We will actively cooperate with the agency in reaching an appropriate resolution in the best interests of asthma patients.

Home Responsibility Research practices Patient safety Collecting and reporting safety data Questions about the safety of our products containing long acting beta2 agonists

Page 131 of 336




Corporate Responsibility Report 2008PerformanceWe have continued to improve our patient safety systems, safety databases and monitoring processes. Examples from 2008 include:

Established two more Clinical Toxicities Strategy Panels (comprising internal and external experts) to provide expert safety input throughout the medicine development process. We now have expert panels in four areas: cardiovascular, hepatic, renal and haematological

Implemented a clinical trials signal detection (CTSD) tool for review of completed study data, in partnership with Lincoln Technologies. This has enhanced our ability to identify and explore safety signals in our clinical trials. The system won a BIO IT award

Launched a prototype for our Molecular Clinical Safety Programme (MCSP). MCSP is a tool that seeks to better inform decision-making in medicine development by integrating chemistry, pre-clinical and human safety data and enabling us to look for patterns across the different types of safety information. In October 2008 the GSK team won the Wall Street Journal Technology Innovation Award for Healthcare IT for developing this system. The entry was selected by an independent panel of judges, who reviewed more than 700 applications for the awards

Working with othersWe work with government officials, industry partners and policy makers in efforts to build an enhanced safety system. For example GSK is the industry lead in the benefit-risk project consortium of the European Commission �s public-private partnership, the Innovative Medicines Initiative, which aims to develop methodologies to enhance the assessment of the benefit-risk profile of new medicines.

GSK is a key partner among the US Food and Drug Administration, other pharmaceutical companies and academia in the US to explore the development of a new system for the detection of adverse events and benefits of medicines using large healthcare system databases.

Read about our collaborative research on emerging technologies.

Serious Adverse Events ConsortiumIn 2007, we co-founded the Serious Adverse Events Consortium (SAEC), a collaboration involving more than 20 partners. The SAEC is working to improve patient safety by identifying genetic variants that predict adverse events such as drug-induced liver injury and a rare but serious severe skin rash called Stevens Johnson Syndrome. GSK scientists co-chair the SAEC scientific management committee and have a seat on the board of directors.

Home Responsibility Research practices Patient safety Performance

Page 132 of 336




Corporate Responsibility Report 2008Maintaining the confidentiality of research participantsIt is vital that medical information collected during research is protected to maintain the confidentiality of participants. We have rigorous procedures to control the use of research data.

Our research activities are conducted according to fundamental ethical and legal principles, including consent and ethics committee approval. We use a variety of procedures to protect the confidentiality of research participants � data, including data coding, data encryption and restricted access to research databases.

Third parties handling research data on our behalf are required to comply with relevant data protection legislation and standards.

We only collect information about individuals that is relevant to the research study. This includes medical information such as health status, medical conditions (including, on occasions, genetic data), treatment of conditions and ethnic origin. This means that, in the vast majority of instances, we do not collect or store information that can directly identify individuals such as initials, names, addresses or personal ID numbers. Information that can identify individuals is only used in very specific instances required by law and regulations such as safety monitoring and pharmacovigilance.

We retain medical research data using the minimum amount of identifying information and only for the duration reasonably necessary to meet regulatory, legal or research needs.

Home Responsibility Research practicesMaintaining the confidentiality of research participants

Page 133 of 336




Corporate Responsibility Report 2008Working with healthcare professionalsOur policies governing interactions between GSK R&D staff and healthcare practitioners require that:

� All clinical trial investigators must be selected solely on their qualifications to conduct good quality clinical research. Their history of using or not using GSK products must not be taken into account when deciding whether to include or exclude them in a particular trial

� Payments to practitioners are governed by contracts and any compensation reflects fair market value for the work performed

� No payments are offered or made to influence their judgement on whether to enrol or maintain a participant in a clinical study

� Gifts to healthcare professionals involved in research projects for GSK are not permitted.

From 2009, the PhRMA Code on Interactions with Healthcare Professionals also prohibits non-educationalgifts to healthcare professionals involved in research. GSK policies have prohibited these gifts to healthcare professionals involved in research since 2006.

We are also committing to disclose research payments made to healthcare professionals and institutions. This will start with payments to US healthcare professionals and institutions for conduct of clinical trials starting in 2010. Thereafter it will be extended to payments for other types of research and to healthcare professionals and institutions outside the US.

Read more about our policies and monitoring systems that govern our relationships with healthcare professionals.

Home Responsibility Research practices Working with healthcare professionals

Page 134 of 336




Corporate Responsibility Report 2008Training and auditing

Training for clinical trialsAll employees involved in designing, conducting, recording and reporting GSK-sponsored clinical research studies are trained in the Good Clinical Practice (GCP) guidelines developed by the International Conference on Harmonisation (ICH). Employees must have completed the required training before undertaking these roles.

We keep detailed training records which are routinely requested by regulatory authorities when undertaking an inspection of GSK clinical research trials.

Auditing for clinical trialsGSK �s internal audit department audits the conduct of clinical trials. Audits cover GSK systems and processes, as well as external clinical research organisations and investigators performing clinical research on our behalf.

Trials are selected for audit based on risk. Risk factors include the complexity of the study, the patient population, the location of the study, previous audit history and any unusual findings during the conduct of the study.

Results are reported quarterly to the R&D Compliance Board, and annually to the Risk Oversight and Compliance Council and the Audit Committee of GSK�s Board of Directors. Read more about these in the corporate governance section of our Annual Report. Members of our Global Safety Board (GSB) receive individual audit reports on any safety-related findings.

Any concerns or issues identified are fully investigated and appropriate corrective action taken. For GSK staff corrective actions may include development of new training programmes or retraining for the individuals concerned. In more severe cases appropriate disciplinary action will be taken, up to and including dismissal.

For external investigators, GSK may retrain the investigator, or stop working with the investigator. Trial data from noncompliant investigative sites is excluded from the analysis.

Regulatory authorities also carry out inspections of GSK and the investigators we use to conduct clinical trials.

��

Home Responsibility Research practices Training and auditing


Page 135 of 336




Corporate Responsibility Report 2008Training and auditing

Training for clinical trialsIn 2008 there were 66,579 training activities related to Good Clinical Practice (GCP). Each �training activity �represents a successful completion of an e-learning module or instructor-led course related to GCP by one of our employees or contractors.

Auditing for clinical trialsIn 2008 we conducted 208 audits. These included:

150 audits of investigator sites conducting GSK-sponsored trials. This represents approximately five per cent of investigator sites participating in pivotal clinical trials

16 audits of internal GSK systems and processes used in managing clinical trials and data

30 audits of clinical research organisations carrying out clinical trials on GSK �s behalf

12 audits of GSK local operating companies involved in clinical research activities.

WIn addition, 24 investigations were conducted in response to suspected irregularities at investigator sites.

Issues identified at investigator sites included insufficient oversight of clinical trial activities by investigators. Oversight covers all areas of investigator responsibility including: knowledge of the protocol design; appropriate and documented delegation of tasks to skilled personnel; and availability to meet sponsor representatives at regular intervals during the study. Additional training for investigators and implementation of further internal controls are helping to reduce the frequency and significance of this issue.

Inspections of investigators, clinical research organisations, independent ethics committees/Institutional Review Boards and sponsors of clinical trials are also carried out by regulatory authorities to ensure the safety of trial participants, the quality of data and that trials are conducted according to Good Clinical Practice. During 2008 there were more than 40 such inspections of GSK and investigators used by GSK to conduct clinical trials.

The Food and Drug Administration (FDA) conducted a routine Post Marketing Adverse Drug Experience Inspection in 2007. The inspection involved a review of GSK �s processes for receiving, capturing and tracking adverse drug experience information for GSK products, as well as reporting these data to the FDA. In the course of the inspection, the inspector focused on GSK�s compliance with regulatory requirements for New Drug Application (NDA) Annual Reports and periodic adverse drug experience reports. As a result of the inspection GSK received a warning letter from the agency in March 2008. The FDA determined that for some products, certain required reports submitted by GSK had not included all required information about clinical studies on a timely basis. The FDA letter acknowledges that information not captured in the periodic reports was, in many cases, submitted to the Agency in other reports and communications. In addition, information about the start of clinical trials that was omitted from some reports was available at www.clinicaltrials.gov. Clinical trial results also are posted publicly to GSK�s Clinical Study Register.

We acknowledge the seriousness of the issues raised in the warning letter, and corrective steps have been taken or are underway to make sure periodic reports are filed completely and promptly. After the inspection, GSK initiated a review of all applicable processes and reporting systems. We have made and will continue progress in updating procedures and improving compliance in the area of reporting, including additional

Home Responsibility Research practices Training and auditing


Page 136 of 336




training to ensure that all procedures are followed across all product lines. GSK works continuously to monitor and, as necessary, enhance its compliance systems and procedures.

��

Page 137 of 336




Corporate Responsibility Report 2008Case studiesFocus on the Patient programmeOur Focus on the Patient programme helps our R&D employees understand patient needs and inspires them to do more to help improve the lives of patients.

In 2008 we held 12 seminars where patients visited GSK sites to help our R&D employees understand the realities of living with their illness. The seminars included discussions on breast cancer, cystic fibrosis, HIV/AIDS, inflammatory bowel disease, schizophrenia, epilepsy, meningitis, hepatitis C, pulmonary hypertension, idiopathic pulmonary fibrosis and migraine headaches. There were over 4,640 attendees at these seminars.

We have also held lunchtime sessions to develop ideas and actions. One session prompted the organisation of a seminar at our site in Verona, Italy, providing insight for local scientists developing medicines for sleep disorders and depression. Another idea led to �Patient Empowered�, a project to improve patients� experiencein GSK clinical trials, through patient-focused study design and simplified patient-directed communications.

To inform our employees about the patients they are helping through their work in R&D, regular monthly bulletins highlight key medicines in our pipeline and how they will meet the needs of patients. This helps to motivate employees by reminding them about the importance of their work.

A survey of R&D employees showed over 50% of respondents felt that there was an increase in patient focus across the businesses through greater application of patient focus in work processes and the development of medicines.

Clinical Study RegisterIt is important that the results of all studies that evaluate medicines are in the public domain. This enables the information to be used to help inform medical judgement and advance medical science.

Traditionally, publication in scientific and medical journals has been sought but there are well recognised limitations:

Have all studies been published by researchers?What if it is not possible to publish a study in a peer reviewed journal?

Posting a summary of each study on the internet when it is initiated enables all studies to be tracked to publication. Studies that are not publicly disclosed can be identified and researchers called to account.

Posting the results after the study is completed means that results are in the public domain, whether or not the study is accepted for publication. GSK provides an online Clinical Study Register, which now contains the results of over 3,000 trials, covering over 100 GSK products dating back to 2000 when the company was formed. Launched in 2004, we are pleased that the site has been a success and our latest figures show that the site is receiving over 25,000 visitors a month.

In 2008 we took further steps to build on our commitment to the transparency of clinical research:

To help people quickly find the information they need, we launched a revised version of the Clinical Study Register, which includes an improved user interface making it easier for users to find information by disease area or medicine

We are adding observational research and meta-analyses that evaluate our medicines and studies of

Home Responsibility Research practices Case studies

Page 138 of 336




terminated compounds to the Register. This adds to our current commitment to post-protocol summaries and summary results of all GSK�s clinical trials (phases l-lV) for our marketed medicines

However, the disclosure of research protocols and results online should be seen as a supplement and not a replacement for the need to publish studies in peer reviewed journals. We believe that the level of public disclosure achieved through posting results on our Register alone is below that achieved through papers published in peer reviewed journals which more fully explain a study and places the results in context.

GSK aims to publish our clinical research of our medicines as more comprehensive papers in peer reviewed journals. When studies are not published we will provide context and interpretation via our register.

Page 139 of 336




Corporate Responsibility Report 2008Q&AsHere we respond to questions raised by our stakeholders.

How are you assured that the risks for healthy volunteers who take experimental medicines for the first time are minimised?

Before a clinical trial can take place, a new compound must undergo a series of stringent laboratory tests. These tests involve the use of animals and human tissue to predict the effects of an investigational medicine in the human body, including any potential side effects. On the basis of the predictions we establish dosing levels with a sufficient margin of safety and/or appropriate monitoring procedures.

The �pre-clinical � data from laboratory tests, and our proposal for the design of each �first time in human�clinical trial, are reviewed by a GSK committee, known as the Global Safety Board, of experienced senior physicians and other experts who are independent of the project team. Regulatory authorities and independent ethics committees must approve the trial before it can go ahead.

Clinical trials are designed to minimise risk. For example, we initially give volunteers a very low dose of the investigational medicine and increase dosing gradually, carefully sequenced among subgroups, to be cautious in our approach. Trials of an investigational medicine being tested in humans for the first time are conducted in clinical units with rapid access to hospital emergency care.

All clinical trial volunteers are provided with information about the study, including potential risks, and have the opportunity to discuss these risks with researchers before deciding whether or not to participate. This is known as informed consent.

You plan to enter in to more research collaborations. How will you ensure that the organisations you partner with meet your research and animal welfare standards?

We recognise that working in collaboration with other organisations brings certain risks. We are developing routine safeguards to ensure our partners work according to the same core principles as GSK, including those that govern our use of animals in research. These checks will be applied when we are evaluating whether to enter into collaboration, and subsequently on an ongoing basis within the framework established to govern a collaboration, typically a Joint Steering Committee. GSK�s willingness to enter or continue a collaboration depends on having adequate assurance of a shared commitment to core principles.

GSK is opening an R&D facility in China. Will this affect your research standards? Is it a cost reduction exercise?

We have opened a new R&D facility in China which is focusing on R&D into neurodegenerative disorders, for which better therapies are desperately needed: Alzheimer�s disease, Parkinson �s disease and multiple sclerosis.

The costs of conducting research in China are currently relativity lower than those in other markets. However, lower costs are not the reason behind the decision to set up this new facility. The new centre enables us to benefit from accessing the vast talent pool and knowledge in life sciences in China, and to increase focus and depth in important disease areas.

Our R&D in China is conducted in accordance with GSK�s global quality and ethical standards. All R&D policies and monitoring procedures apply to our operations in China. We have committed significant regional and local resource to ensuring our operations in China comply with both Chinese government requirements and GSK �s global standards.

Home Responsibility Research practices Q&As

Page 140 of 336




Page 141 of 336




Corporate Responsibility Report 2008Ethical conductWe are committed to creating a strong ethical culture at GSK.

We do this by putting the appropriate policies in place, recruiting the right people and equipping them with tools to make ethical decisions. Putting patients first is the core principle of being an ethical pharmaceutical company. Profit without principle is short lived.

Failure to uphold high standards of ethical conduct carries significant business risk:

Erosion of trust in GSK and our products including among regulators, doctors and patients

Fines and litigation resulting in serious financial or legal consequences

Damage to GSK �s reputation

Our Code of Conduct sets out fundamental standards for all employees. The Employee Guide to Business Conduct builds on the Code and explains what employees must do to meet its requirements. It provides guidance, including specific examples, on what constitutes unethical behaviour. Strong policies, codes of practice and good training are essential elements of our approach. However, on their own they cannot guarantee that our employees will meet our standards. Our internal compliance systems are designed to identify and address breaches of our codes. We fully investigate suspected breaches and take appropriate disciplinary action, including dismissal where appropriate.

We have clear policies and procedures to prevent corrupt and anti-competitive behaviour. Maintaining highethical standards in our marketing is also vital and is relevant to patient safety. It is essential that our marketing practices help doctors to prescribe medicines that are in the patient �s best interests. Our policies prohibit kickbacks, bribery or other inducements to doctors, and any promotion for unapproved uses of our medicines. Maintaining high ethical standards during all stages of R&D and once a product is approved formarketing is a key part of our commitment to put the patient first.

Your ethical compass

Our Employee Guide to Business Conduct includes an �ethical compass� that helps employees deal with ethical issues that are difficult to resolve. When faced with such a situation, we encourage our people to ask themselves these questions:

Is it legal and ethical?Is it consistent with GSK policy and the Code of Conduct?Is it consistent with GSK�s Mission and Spirit?Can I explain it to my family and friends?Would I be comfortable if it appeared in a newspaper?

We encourage employees to seek additional guidance and to keep asking questions until they are certain that they are making the right choice.

Home Responsibility Ethical conduct

Back to top�

Page 142 of 336




Corporate Responsibility Report 2008Code of Conduct and business ethicsCode of ConductThe GSK Code of Conduct sets out the standards we expect from our employees and contractors. It contains the following key requirements:

Conduct business with honesty and integrity and in a professional manner that protects GSK �s good public image and reputationBuild relationships with customers, vendors, suppliers and fellow employees based on trust and treat each of these individuals with respect and dignity when conducting businessBecome familiar with and comply with legal requirements and GSK policy and proceduresAvoid any activities that could involve or lead to involvement in any unlawful practice or harm to GSK �sreputation or imageAvoid actual or potential conflicts of interest with GSK, or the appearance thereof, in all transactions

Read the full Code of Conduct.

Our Employee Guide to Business Conduct builds on the Code and explains what employees must do to meet its requirements.

Business ethicsCorrupt and anti-competitive behaviour undermines fair competition, inhibits economic development and is bad for economies, business and people.

Our Employee Guide to Business Conduct contains the policies and guidance to ensure that we operate within the letter and spirit of the law and maintain high standards of ethical business behaviour.

Anti-competitive behaviour

We are committed to free and open competition. We succeed as a company because of the high quality and competitiveness of our products and the talent and commitment of our employees.

Our policy on anti-competitive behaviour covers issues such as mergers, abuse of monopoly powers, resale price maintenance, predatory pricing and other restrictive agreements and practices. It sets out the standards of behaviour we expect from our employees and agents.

Preventing corruption

Our policy on anti-corruption forbids payments or inducements to political candidates, legislators, political parties and party officials, or government officials or employees, whether local or national, including officials and employees of government-owned enterprises and of public international organisations. We also have separate policies on political contributions or donations and on acceptance of gifts or entertainment by our employees.

Sample questions from our Employee Guide to Business Conduct

Question: We have received an order for an unusual volume and combination of pharmaceuticals from a new customer in a location noted for political instability. The shipment location is in another country, and the customer has said we should not bother including the usual consumer use information. Is this a problem?

Home Responsibility Ethical conduct Code of conduct and business ethics

Page 143 of 336




Answer: There are enough red flags here that you need to get advice from the GSK Legal Department. The information you have indicates that this material might be shipped to a prohibited country or used for improper or even terrorist activity. You need to know your customer and get advice on what to do.

Question: A vendor offers to sell a GSK product manager a mailing list of 10,000 names of individuals who are being treated for depression. Are there any concerns with the purchase of such a list?

Answer: Yes. Many countries, including the US and those in the EU, have established strict laws protecting healthcare information that identifies an individual. Written authorisation by each individual is usually required for GSK to receive this information.

Back to top

Page 144 of 336




Corporate Responsibility Report 2008Marketing ethicsWe market our prescription medicines and vaccines to doctors, hospitals and governments.

In some countries, such as the US, we also advertise medicines directly to consumers. Our specialist sales representatives meet regularly with doctors and pharmacists to inform them about our medicines and their approved uses.

We believe that sales representatives play an important role in providing up-to-date information to doctors on our products and their benefits and risks to patients. However, we recognise that the marketing of pharmaceutical products raises some challenging issues.

In particular, some people are concerned that marketing by pharmaceutical companies exerts undue influence on doctors, that sales representatives do not always give doctors full information about potential side-effects, or that promotion of unapproved uses of medicines may be occurring. Our regional marketing codes forbid these practices and other unethical conduct. We provide regular training so that our sales teams understand these codes and we conduct monitoring to assess compliance.

Marketing Codes of PracticeThe sale and promotion of pharmaceutical products is highly regulated by governments and medical agencies. We have developed marketing codes and policies and provide training for sales representatives to ensure that they understand how to behave ethically and comply with the law. In many countries our codes and policies go beyond legal requirements.

Our products are sold in more than 150 countries around the world. The first priority with any product in any country is patient safety. We have systems and processes to collect, analyse and report safety concerns about our products.

Our marketing codes of practice apply to all employees and agents. They commit us to promotional practices that are ethical, responsible, principled and patient-centred. They prohibit kickbacks, bribery or other inducements to doctors, and any promotion for unapproved uses of our medicines.

These company policies are supported by regional marketing practices codes which apply the same standards but reflect differences in market structures, national healthcare systems and regulations.

A new US PhRMA Code on interactions with healthcare professionals (HCPs) came into effect in January 2009 and we have fully aligned our sales and marketing practices to the requirements of the Code. In some cases, GSK has gone beyond the requirements of the Code, including phasing in a prohibition on giving non-educational items in the US, and reinforcing a $150,000 cap on payments made to an individual US-basedHCP working as a consultant to the company, for example by participating in an advisory board or speaking at GSK-sponsored meetings. Our updated Commercial Practice Policies (CPPs) will be available in the first quarter of 2009.

GSK is initiating a review of all internal, regional codes relating to the sales and promotion of our pharmaceutical products. Through this review, we intend to align, where legally and culturally appropriate, GSK �s regional codes. This alignment will lead GSK to develop more detailed global principles guiding the sales and marketing of GSK pharmaceutical products all over the world.

Helping to strengthen industry codesGSK supports efforts to strengthen marketing standards across the pharmaceutical industry.

This benefits us by creating a �level playing field � in the countries in which we operate and helps to improve

Home Responsibility Ethical conduct Marketing ethics

Page 145 of 336




the reputation of the pharmaceutical industry as a whole.

In 2008, we took an active role in working with the US pharmaceutical industry association, PhRMA, to develop the changes to its Code on Interactions with Healthcare Professionals. GSK will certify compliance to the Code during the first quarter of 2009. The Code will guide the sale and marketing of GSK pharmaceutical products in the US.

Our Marketing Codes of Practice in summary

Full and accurate information � information can only be provided on approved uses for a medicine. It must be based on valid scientific evidence and must be accurate, balanced, fair, objective, unambiguous and up to datePromotional items to healthcare professionals � branded promotional items must be given only occasionally and must be relevant to the practice of medicine. Their nominal value was no more than $10 or less than �6 in the UK in 2008. From 2009, we will no longer distribute non-educational items in the US, in line with the US PhRMA code.Items cannot be given as an inducement to prescribe any of our medicines or to medical professionals retained as consultants to GSKAppropriate hospitality for meetings � no entertainment is permitted. Hospitality, such as travel costs or food, may only be provided for meetings with an educational or professional purpose. The level of hospitality must be appropriate to the occasion and must only be provided for relevant healthcare professionals, not spouses, children, office personnel or any other guestsDecisions about grants for medical education are reviewed by qualified medical or scientific personnel

Back to top

Page 146 of 336




Corporate Responsibility Report 2008Relationships with healthcare professionals

As well as our marketing codes we have detailed policies and monitoring systems governing our relationship with healthcare professionals in the following areas:

Medical education programmes � we provide funding to enable physicians, pharmacists, nurses and other healthcare professionals to attend education courses and conferences in therapeutic areas relevant to GSK. We do not consider this to be part of our marketing and our policies state that the content of the education programme or the choice of faculty should be independently approved

Sponsoring speakers � we provide sponsorship for healthcare professionals to attend conferences to present their research results or to speak on healthcare issues. Speakers must declare during their speech that they are funded by GSK

Advisory services � we engage with healthcare professionals to understand unmet medical needs and developments in science and treatments. This helps us to understand current and future markets for our products. This engagement may take the form of convening advisory panels or conducting broader market research

Read how we engage with healthcare professionals who conduct medical research on our behalf.

Our policies and processes vary by region to comply with local laws and industry practices. They meet or exceed the codes on relationships with healthcare professionals from the following industry organisations:

The Pharmaceutical Research and Manufacturers of America (PhRMA)The European Federation of Pharmaceutical Industries and Associations (EFPIA)The International Federation of Pharmaceutical Manufacturers & Associations (IFPMA)The Japan Pharmaceuticals Manufacturers Association (JPMA)

Our policies and processes are further restricted in the US where they include:

A limit on payments to healthcare professionals through speaker and advisory fees of $150,000 a year for an individual physician. The majority of our US healthcare professional consultants receive fees that total less than $10,000 per year

A state reporting system for expenditure with healthcare professionals, in line with legislation in several US states. This system can help us to investigate situations where excessive meals and gifts may have been provided by GSK

A requirement that GSK funding of grants to any healthcare-related group, including patient advocacy groups and physician associations, cannot exceed 25 per cent of the group�s annual income

A speaker evaluation process covering healthcare professionals sponsored by GSK. This requires our regional medical scientists to evaluate high-frequency speakers, and to provide feedback to the healthcare professionals on their effectiveness and compliance with the GSK Speaker Programmes policy

A process to monitor questions posed by doctors to our medical information department about off-labeluses of our products, and the number and type of referrals made by individual representatives. This helps to ensure that representatives are not promoting off-label uses. All questions from doctors on off-label uses

Home Responsibility Ethical conduct Marketing ethicsRelationships with healthcare professionals


Page 147 of 336




for our products must now be referred to our medical information department.

Back to top�

Page 148 of 336




Corporate Responsibility Report 2008Relationships with healthcare professionals

United StatesWe make payments to healthcare professionals for consultancy work such as participating on an advisory board or speaking at GSK-sponsored meetings. The majority of our US HCP consultants receive fees that total less than $10,000 per year. However, in 2009 we reinforced a cap on payments to HCPs in the US of $150,000 a year for an individual physician.

It is in our interest that the physicians we work with do not receive excessive funding from GSK. This ensures that their work for GSK does not detract from the time they spend with patients or conducting research, which could reduce their professional credibility and their value to GSK as sources of currentmedical expertise.

EuropeIn 2008, we changed our European code of practice on interactions with healthcare professionals in response to a new Code of Promotion published by the European Federation of Pharmaceutical Industries and Associations. We made the following changes and refinements to our code:

Use of consultants � GSK employees responsible for selecting consultants must have the expertise to evaluate whether the consultant is suitable to meet the identified business need and is of real value to GSK. The consultant is required to declare the consultancy arrangements when speaking publicly on a related issue.

Samples � Product samples are now to be given only in limited numbers and for a limited time, by reference to local standards, for the purposes of familiarisation. This replaces previous limits that were less restrictive and did not specify a quantity or timeframe.

Grants and donations � We introduced a new policy on grants and financial donations to health organisations. We are not involved in how the grant or donation is used and receive no service in return. The new policy states that grants and donations:

May only be given to a health organisation in response to an unsolicited request and only for the purposes of healthcare or researchMust not be offered or given on the understanding that the recipient will prescribe or recommend our productsMust be documented and published externally. To meet this requirement the amount of the grant and the recipient will be published on GSK�s website from 2010Are only permitted to health organisations rather than individuals

Phase lV clinical studies � These are studies conducted after a medicine has been approved for marketing. We clarified the principles behind these studies, clearly setting out the terms for GSK and collaborative studies:�

Studies must not be commissioned as an inducement to prescribe, supply or recommend medicines. They must have a clear scientific and/or educational purposeThere must be a contract with the institution undertaking the research

Home Responsibility Ethical conduct Marketing ethicsRelationships with healthcare professionals


Page 149 of 336




The trial protocol must be reviewed and approved by an ethical committee, where availableGSK R&D or medical personnel must approve and supervise studiesResults will be distributed to investigators

Asia Pacific, Japan and Emerging MarketsGSK continues to be very active in the IFPMA Code Compliance Network and many of our senior country managers have been very supportive of leading industry change as part of strengthening local codes

NigeriaGSK has received the �Best Compliant Company � award issued by NAFDAC (the regulatory authority). This award is the first of its kind and aims to encourage compliance among companies in Nigeria and to encourage Nigerians to buy from companies deemed to be compliant by NAFDAC.

AustraliaFrom January 2009, GSK Australia has stopped distributing brand reminders to healthcare professionals, including pens and notepads, with the exception of new brand launches. This aligns our behaviour with community expectations of how we interact with customers.

Our plansWe will publish grants and donations made in the US during 2009, and in Europe by 2010.

In Australia, an initiative to move all States to the Victoria operating model will take effect from 1 August 2009, delivering improved control around samples accountability and security, and supporting our aim to achieve the highest levels of professional standards. The field sales force will no longer distribute samples directly to healthcare professionals. Instead, orders will be taken by our medical representatives and samples delivered direct to surgeries from our central warehouse.

GSK �s International Promotion and Marketing Code, applicable to Emerging Markets and Asia Pacific regions, will be subject to its regular two-year review. The last revision incorporated major structural change to align with the structure and content of the IFPMA code and indeed goes further in many cases.

Back to top�

Page 150 of 336




Corporate Responsibility Report 2008Direct-to-consumer advertising

In the US it is legal to advertise prescription medicines to consumers through TV and print advertisements. This is known as direct-to-consumer (DTC) advertising.

New Zealand, Bangladesh and Korea also allow limited DTC advertising. DTC advertising of prescription medicines is not permitted in other markets.

Promoting the use of prescription medicines directly to consumers can raise concerns. Critics believe that it encourages people to request unnecessary treatment, adding to the burden on healthcare systems.

We believe that responsible pharmaceutical advertising is a useful source of health information for patients. It helps to increase knowledge of conditions and educates patients about treatment options. In countries such as the US where DTC advertising is common industry practice, we would be at a competitive disadvantage if we did not promote our products in this way.

Patients must still consult with their physicians about their condition, the appropriateness of a prescription medicine and obtain his or her consent before receiving such medicines.

Prescription medicines in the USOur DTC Communications policy is based on the PhRMA Guiding Principles: Direct to Consumer Advertisements About Prescription Medicines.

We have a detailed approval process for DTC advertising, which includes review by legal, regulatory and medical specialists as appropriate. All US marketing employees have received training on our DTC policy.

All DTC television advertisements, including audio and visual components, are submitted to the US Food and Drug Administration (FDA) for review at least 30 days in advance of broadcast.

Members of the public and healthcare professionals can send comments or complaints on DTC advertising to PhRMA �s Office of Accountability, which reports the comments and the responses of the companies to the FDA.

The FDA Amendments Act 2007 imposes restrictions on DTC advertising. It gives the FDA the ability to require submission of DTC television advertisements 45 days prior to dissemination and imposes a new standard on presentation of safety information in broadcast advertisements. Companies responsible for falseor misleading DTC advertisements can now be fined up to $500,000. We have implemented these provisions in our DTC advertising in line with the Act�s requirements.

We fund disease-awareness campaigns which are designed to increase understanding of a specific disease but are not linked to the promotion of GSK products. These are also governed by our DTC policy. Our disease awareness campaigns include television and print advertisements, and direct mail. They do notmention specific GSK products but make people aware that treatments are available for their condition and encourage them to see their doctor. Campaign materials are branded to indicate that they have been produced by GSK.

Over-the-counter medicines and consumer healthcare productsOur advertising for over-the-counter medicines, oral healthcare and nutritional products is governed by national regulations or codes of practice for advertising. Our over-the-counter medicines are also promoted

Home Responsibility Ethical conduct Marketing ethics Direct-to-consumer advertising


Page 151 of 336




to pharmacists, doctors and dentists by our sales teams.

We belong to the Consumer Healthcare Products Association in the US and comply with its Code of Advertising Practices for Non-prescription Medicines.

GSK Consumer Healthcare advertising is reviewed by Copy Review Committees in our larger markets, or by medical and legal personnel in our smaller markets, before publication to ensure it meets our standards.

Advertising to childrenOur guidelines for advertising to children prohibit advertising designed to appeal to, or targeted at, children below the legally mandated minimum age. For example, to comply with our guidelines in the UK we do not buy advertising space in children �s media and we do not supply vending machines to primary schools.

Sports star sponsorship is important to brands such as Lucozade Sport. Our guidelines state that only people who set an appropriate example should be used for sponsorship, and they should have an appeal that is not solely to children below the age of 13.

Our principles for DTC advertising in the US

Our policy requires that DTC advertising should:

Dedicate an appropriate amount of time to educating healthcare professionals prior to initiating DTC promotion for a new medicine or new therapeutic indication for an approved medicineBe designed to educate consumers about the medicine and the condition for which it is prescribedBe accurate and supported by evidenceInclude information on the risks and benefits of treatmentsProvide information on other treatment options such as diet and lifestyle changes, where these are referenced in the prescribing information for a productOnly be targeted at an audience at least 80 per cent of whom are adults

Back to top�

Page 152 of 336




Corporate Responsibility Report 2008Direct-to-consumer advertising

In 2008 no problems with GSK US DTC advertising were identified by the FDA nor did we receive any comments from the PhRMA Office of Accountability relating to GSK DTC print advertisements.

In February 2009 GSK received a letter from the US Food and Drug Administration Division of Drug Marketing, Advertising, and Communications saying that a television advertisement presented a misleading suggestion of superiority to other drug therapies and overstated the efficacy of GSK�s product Avodart. The advertisement aired from March to September 2008 and was no longer in use at the time the letter was received. We are continuing to make every effort to ensure that future advertisements incorporate the directions provided to us by the FDA.

Home Responsibility Ethical conduct Marketing ethics Direct-to-consumer advertising


Back to top�

�

�

�

�

Page 153 of 336




Corporate Responsibility Report 2008Training and awarenessTraining and awareness programmes help employees understand the importance of ethical conduct and to apply our policies in practice.

New employees in the UK and the US complete induction training on our Code of Conduct, which is available on our intranet site. Our annual management certification programme requires managers to confirm that they comply with our ethics policies. The programme covers over 14,000 managers worldwide.

Managers can access three e-Learning modules on ethical leadership. Specialised training is provided for employees working in R&D, manufacturing and sales and marketing, where there are additional regulatory requirements.

Our corporate ethics and compliance intranet contains links to all company policies, ethics and compliance training for new recruits, an ethical decision-making model, an ethics quiz, contact details for compliance officers and the free phone numbers for our Global Confidential Reporting line. As well as this phone line which is available in over 25 languages and can be used for reporting any concerns employees may have relating to compliance with our policies and the Code of Conduct, we also have an Integrity Helpline based inthe US. This provides advice to callers, from both within and outside the company, on Code of Conduct issues, as well as being a reporting channel.

Training for employees working in sales and marketing includes:

Induction training and testing on our marketing code of practice

Detailed training for sales representatives on the medicines they promote and the diseases they are designed to treat

Regular refresher courses held at least once a year

Regular management updates in Europe, Emerging Markets and Asia Pacific and the US on the types of unethical conduct detected and disciplinary actions taken

Ethics training in practice

Ethics training helps employees make the right decisions and apply our policies in practice. For example, new employees are encouraged to ask themselves the following questions before making a decision:

Is it legal and ethical?Is it consistent with GSK policy and the Code of Conduct?Is it consistent with GSK�s Mission and Spirit?Can I explain it to my family and friends?Would I be comfortable if it appeared in a newspaper?

We also run ethical decision-making training for established employees and leaders. During training employees explore ethical dilemmas they may face in their work and receive guidance to help them understand the appropriate response. This is one example of an ethical dilemma:

When you arrive at the office, there is a large gift basket filled with very expensive chocolates and other gourmet treats on your desk. You estimate its value at $250. Enclosed is a note from a consultant: 2Thanks for choosing us as your consulting partner. We look forward to working with you.3

Home Responsibility Ethical conduct Training and awareness

Page 154 of 336




You should:

a. Keep the gift for yourself. Since you already chose the consultant, the gift can�t be considered as having influenced your decision

b. Call the owner and explain that while the gift was certainly thoughtful, you cannot accept it because it is against GSK policies to accept such an item. Tell her that you will be returning the gift basket and that you look forward to working with her firm

c. Put the goodies by the office coffee station for everyone to enjoy

The best solution is to return the gift, answer (b).

Back to top

Page 155 of 336




Corporate Responsibility Report 2008Leading by exampleOur senior managers are expected to lead by example by complying with company policies and by supporting their staff to do the same.

This is reinforced annually by a formal �Management certification on business ethics � in which over 14,000 managers confirm their understanding and compliance with the company policies contained in the EmployeeGuide to Business Conduct.

Management certification promotes awareness of GSK �s ethical standards and company policies. It emphasises the importance of the company policies to thousands of other GSK employees who, in the course of their daily activities, must comply with the law and company policies in the conduct of company transactions.

This is the full certification statement:

I understand that GSK is committed to the principle of performance with integrity, and in particular, to ensuring that its activities comply with all applicable laws.

I have received a copy of or have access to the GSK Code of Conduct (POL-GSK_001) and other GSK corporate policies through the Corporate Policy Index page accessible on the Corporate Ethics & Compliance Community.

I have read and understand The Employee Guide to Business Conduct, accessible on the Corporate Ethics & Compliance Community.

I have complied with applicable laws, regulations, and GSK corporate and local policies and procedures.

I understand my responsibility to promptly report any actual or suspected violations of the law, regulations, or GSK corporate and local policies and procedures.

I have reported all actual or potential compliance issues of which I am aware concerning legal requirements or company policies.

The following statements are also applicable to supervisors with personnel management responsibility:

All people under my supervision have received copies of or have access to the GSK Code of Conduct and other applicable GSK policies and have been informed of their responsibilities.

I have put in place appropriate measures to ensure that the people under my supervision comply with applicable laws, regulations, and GSK corporate and local policies and procedures while working on behalf of GSK.

All new hire employees under my supervision have completed or are scheduled to complete the GSK Corporate Ethics & Compliance new hire training program at GSK Induction or through the Corporate Ethics & Compliance Community.

I have read, understood and shall comply fully with the policies and procedures specified in the learning activity.

Home Responsibility Ethical conduct Training and awareness Leading by example

Back to top�

Page 156 of 336




Corporate Responsibility Report 2008Performance and plansGlobalGSK intends that ethics and integrity are a part of all that we do; therefore, the following key ethics and integrity principles and messages are provided to our business training groups across the company for integration into regular training courses:

GSK has an unwavering commitment to conducting business with integrity and in full compliance with the law

Every GSK employee is personally and professionally responsible for helping GSK maintain its organisational integrity and good reputation.

Profits without principles are short lived

When faced with difficult ethical situations, reference the ethical decision-making model.��- Is it legal?��- Is it consistent with company policy?��- Is it consistent with GSK values and Code of Conduct?��- Can I explain it to my family and friends?��- Would I be comfortable if it were printed in the newspaper?��- Will it benefit all or most of the people involved?

Our training describes where GSK employees can obtain assistance: ��- Manager��- Corporate Ethics & Compliance web community��- Human Resources��- Legal��- Compliance officers and champions��- Integrity Helpline based in the US

Other training and awareness activity in 2008 included:

Over 14,000 managers completed our self-certification process in 2008

We launched training for new general managers and site directors on their compliance responsibilities, as well as wider monitoring and compliance arrangements at GSK

We added �Performing and Leading with Integrity� training to our induction programme. This focuses on ethical decision making and our code of conduct

We raised awareness of our Global Confidential Reporting Line through an extensive poster campaign and awareness programmes on our intranet. Our Confidential Reporting phone line is now available in 70 countries and more than 25 languages

Our target to set ethical leadership objectives for all of our top managers was put on hold during the transition to the new CEO. We are planning to implement, track and assess ethical measures at the executive level of the company in 2009.

United StatesOver 9,900 employees and contractors completed compliance refresher training. New hire training was completed by 728 people

Home Responsibility Ethical conduct Training and awareness Performance

Page 157 of 336




We launched a redesigned training curriculum for new US Pharmaceuticals field sales employees. The curriculum integrates training on ethical commercial practices with sales training, rather than providing it as stand-alone modules. We will integrate compliance training with a range of other sales training programmes in 2009

We added an ethics section to our employee manual of commercial policies. This expands on the policies to provide information that helps people make the right decisions during commercial interactions

JapanOur promotion compliance team trained 2,846 employees on the GSK Promotional Code, including the entire sales force, marketing employees, clinical trial monitors and other employees who interact with healthcare professionals. All employees who took this course submitted a letter which pledged compliance with our standards and the law.

Back to top�

Page 158 of 336




Corporate Responsibility Report 2008Monitoring and compliance

All our managers are accountable for managing risks of non-compliance with our policies in their areas of responsibility. They are overseen by and can seek advice from our corporate ethics and compliancedepartment that promotes effective compliance programmes, addresses compliance issues, and reports problems and progress to senior management and the Board.

We have a dedicated compliance officer for each of our business units: R&D, Manufacturing, Vaccines, Pharma Europe, Pharmaceuticals Emerging Markets, Pharmaceuticals Asia Pacific and Japan, Consumer Healthcare, Corporate, US Pharmaceuticals, and additional compliance representatives in some markets.

Compliance officers are senior managers with direct access to the leadership teams of GSK functions. They are a source of expertise for anyone with a question on ethics or GSK policies. Our corporate compliance officer reports directly to the CEO.

To further develop GSK �s internal infrastructure, new full-time compliance director positions were also established during 2008 in Latin America, Middle East-North Africa, Asia Pacific and China. This further demonstrates our ongoing commitment to provide dedicated and focused support to our senior management teams globally. Previously such support was via 'champion' roles which were fulfilled by individuals who had additional functional responsibilities beyond ethics and compliance.

Risk managementOur Risk Oversight and Compliance Council (ROCC), which includes several Corporate Executive Team (CET) members, oversees risk management and internal control activities. The ROCC is supported by GSK �s corporate assurance department and corporate ethics and compliance department. GSK �s corporate compliance officer, who chairs the ROCC, regularly reports on significant risks to the CET and the Audit Committee of the Board.

For more information on risk management see the corporate governance section of our Annual Report.

Monitoring for sales and marketingSales representatives are supervised by their managers who regularly monitor educational events, visits to doctors and expenses. We use a risk-based approach to determine the frequency of our checks on different districts and individual sales representatives.

In the US, sales representatives that receive inquiries from physicians about off-label uses of GSK products must notify our medical information department, which responds to the inquiry via a medical information letter. Sales representatives must not solicit off-label questions from physicians. Frequent medical information letter requests by a sales representative can indicate that the employee is prompting questions and promoting off-label uses of GSK products. We monitor requests for medical information letters. Our internal audit department regularly audits our sales and marketing practices globally.

Monitoring for payments to healthcare professionals and organisationsPayments are recorded and monitored in different ways in different countries. For example, in the US we have introduced a state reporting system for expenditure with healthcare professionals, in line with legislation in several US states. In Japan, payments to individual healthcare professionals and medical institutions are monitored on a quarterly basis and the results are reported to promotion compliance officers and our internal audit department

These systems help us to identify situations where excessive meals and gifts may have been provided by

Home Responsibility Ethical conduct Monitoring and compliance


Page 159 of 336




GSK.

Reporting channelsEmployees are encouraged to seek help on ethical issues and to report any concerns or suspected cases of misconduct. They can do this through their line manager, the Corporate Ethics & Compliance department, a compliance officer or compliance champion, GSK �s Human Resources and Legal departments, or throughour Global Confidential Reporting Line or the Integrity Helpline in the US. In the US, employees can also report concerns through an offsite post office box or via email.

Reporting channels are promoted through the Employee Guide to Business Conduct, on the GSK intranet and during training.

Addressing misconductOur Corporate Ethics & Compliance department monitors and tracks allegations and suspected legal, ethical or policy infractions. It ensures that all such allegations are appropriately investigated. Disciplinary action, up to and including dismissal, is taken where necessary. Serious violations of our policies are reported to the Audit Committee of the Board.

Back to top

Page 160 of 336




Corporate Responsibility Report 2008Monitoring and compliance

Reviewing our compliance and risk management strategyIn 2007 we conducted a review of our corporate ethics strategy. Based on the results of the review, we took steps during 2008 in the following areas to further embed an ethical culture at GSK:

Recruitment � we included questions on ethics and integrity in our recruitment process and our GSK Managers Interview Guide. We carried out more extensive pre-employment checks to ensure we recruit people who share GSK�s values

Training � we extended ethics and compliance induction training to new employees worldwide. We provided extra training and guidance for employees committing minor breaches to prevent them committing serious breaches in future

Global Confidential Reporting line � we extended our independently managed reporting line to all countries where we operate. For many countries, employees can call in their native language. We undertook an extensive intranet and poster campaign to raise awareness of this service

Senior management � we developed new training and awareness programmes for site directors and general managers who are key representatives of GSK in the countries and locations where they work. This included individual briefings by the executive team for new appointees on their compliance responsibilities

Policies � we streamlined the administration of our corporate policies and procedures. This involved reducing the number of policies and procedures by half, and requiring that employees need only have detailed awareness of the policies and procedures specific to their role

Financial fraud - we established a new fraud risk assessment tool to help us prevent financial fraud. Our finance leadership team will regularly review all financial fraud cases

Progress on meeting our strategy review objectives is reviewed twice a year by the GSK Audit Committee of the Board.

In 2009 we plan to further enhance our Global Confidential Reporting phone line facility. Internet reporting will be introduced in selected countries and languages as our supplier evolves this technology and the number of languages available.

Addressing misconductIn 2008

1,113 employees were disciplined for policy violationsOf these, 266 were dismissed or agreed to leave the company voluntarily (known as separations)Other disciplinary actions included documented warnings (847 instances) and financial penaltiesThe 1,113 disciplinary actions included 240 cases of employees breaching sales and marketing codesThese 240 cases resulted in 30 dismissals or separations from the company. All the other 210 cases resulted in documented warnings

In addition to appropriate discipline, employees staying with the company received retraining and increased monitoring. In some cases retraining is also extended to an employee�s colleagues to prevent them making

Home Responsibility Ethical conduct Monitoring and compliance


Page 161 of 336




similar mistakes.

The main types of violations this year included:

Marketing and promotional activitiesGood manufacturing/good distribution practicesFalsification of documentsTravel and expenses claimsCode of Conduct issues

Back to top�

Page 162 of 336




Corporate Responsibility Report 2008Case studiesSuitability for GSK�s approved speaker listAs well as ensuring that our employees comply with our policies, it is vital that people working on our behalf meet the highest ethical standards.

In 2008, the US Pharmaceuticals Compliance Department received information through the GSK Integrity Helpline that a healthcare professional (HCP), who was engaged to speak on GSK�s behalf, had allegedly failed to comply with company policies during promotional programmes on two consecutive days. GSK reviewed materials from one of the programmes in question and identified a number of issues and policy violations. The person was suspended as a GSK speaker pending the completion of a follow-upinvestigation. After further investigation, we removed the HCP from our approved speaker list.

Responsible marketing for our weight loss treatmentNearly two-thirds of US adults are either clinically obese or seriously overweight. This is causing a dramatic increase in life-threatening medical conditions such as heart disease and diabetes, and adding strain to the healthcare system. But even a small amount of weight loss can greatly reduce the risk of developing associated medical problems.

GSK �s over-the-counter weight loss product, alli (orlistat 60 mg), helps overweight adults lose weight by preventing about 25 per cent of dietary fat from being absorbed in the gut.1 It helps people lose 50 per cent more weight than diet and exercise alone.2 alli was launched in the US in June 2007 and since then we have sold over six million starter packs. In 2008, alli received a positive opinion from the European Medicines Agency (EMEA) Committee for Medicinal Products for Human Use and in January 2009, the European Commission granted a non-prescription licence for the product.

It is vital that alli is marketed responsibly so that it is used in the right way and only by those who need it. We educate physicians, dieticians and pharmacists to ensure alli is sold appropriately and patients receive the right information about the treatment. Our marketing emphasises that using alli requires lifestyle changes, including exercise and a low-fat diet, to produce the right results without unwanted side effects. The safety and efficacy profile of orlistat is well documented and has been established through data from more than 100 clinical studies.3

We set up the website www.myalli.com to provide further support for alli users. It enables people to set targets, track their weight loss and post success stories. It includes an �am I ready for alli?� quiz, which asks potential users to confirm their commitment to moderating their diet, taking exercise and reading the label carefully. The site also includes �alli circles�, an online moderated forum where users can share experiences and help each other stay focused on their weight loss targets. The forum gives us valuable feedback from patients on the effectiveness of the product, and we monitor the site for reports of adverse effects which are then reported to the FDA, and for inappropriate content.

In 2008, we donated $75,000 to Dress for Success (DFS) to mark the one-year anniversary of the US launch of alli. DFS is an international non-profit organisation that provides business clothing and career support for disadvantaged women. We encourage alli users to volunteer for DFS and to donate clothing that becomes too big for them as they lose weight. DFS has so far received over 38,000 pieces of clothing from alli users.

1. Anderson J. Orlistat for the management of overweight individuals and obesity: a review of potential for the 60-mg, over-the-counter dosage. Expert Opin Pharmacother. 2007;8 (11):1733-1742.

2. alli Summary of Product Characteristics (SPC)

3. Jacob S, Togerson J. Orlistat treatment beneficial in both primary care and tertiary settings. obesity

Home Responsibility Ethical conduct Case studies

Page 163 of 336




reviews. 2005;6(s1):166.

Back to top�

Page 164 of 336





Can one company on its own establish high standards of ethical conduct, or is an industry approach required?We set our own high standards of ethical conduct which we hope will establish a benchmark by which all companies are judged. We also work with other companies through trade associations to develop high ethical standards. We believe that it is in the best interest of patients if the pharmaceutical industry adopts common high standards of ethical conduct. This will also help to improve trust in the industry among all our stakeholders.

A lot of GSK employees were dismissed for unethical conduct. Are your policies working?In 2008, 266 employees were dismissed or agreed to leave the company voluntarily as a result of policy violations. Unethical conduct occurs in all companies. We believe these figures demonstrate the effectiveness of our monitoring and compliance programmes.

Furthering our ethical culture, recruiting the right people, providing the right training and tools, improving our checks and encouraging people to speak up enable us to identify and address unethical conduct in a consistent and responsive manner.

Is GSK unduly influencing doctors?We take several approaches to protect against inappropriate influence of doctors, including regional marketing codes of practice, regular training and monitoring. Our policies apply to all employees and agents and commit us to promotional practices that are ethical, responsible, principled and patient centred. They prohibit kickbacks, bribery or other inducements to doctors and any promotion for unapproved uses of our medicines. Our sales force is regularly trained and supervised by managers who monitor educational events, visits to doctors and expenses.

How do you prevent off-label promotion?All GSK employees dealing with healthcare professionals undergo extensive training and monitoring. They are instructed that only full and accurate information may be provided on approved uses for a medicine. It must be based on valid scientific evidence, and must be accurate, balanced, fair, objective, unambiguous and up to date.

Questions from doctors on off-label uses for our products must be referred to our medical information department. In the US, additional processes are in place for monitoring these referrals to help us ensure that representatives are not promoting off-label uses. We now monitor both the volume of letters responding to questions and the types of referrals made by our individual representatives, for example the number of referrals relating to a particular product or a particular off-label use.

Additionally, our internal audit department regularly audits our sales and marketing practices globally.

The Advertising Standards Authority ruled that health claims in a Horlicks advert shown in the UK were unsubstantiated. Is GSK involved in false advertising?No, GSK was not involved in false advertising. In 2008, Nepali TV, a Bengali-language satellite channel aimed at viewers on the Indian sub-continent, briefly aired an advert into homes in the UK. However, the advert is intended and approved for use only in India. This was done without our knowledge. The health claims in the advert are not appropriate for the UK as the claims in the advert relate specifically to the Indian market and the Indian diet.

The Advertising Standards Authority in the UK upheld the complaint against Nepali TV for broadcasting the

Home Responsibility Ethical conduct Q&As

Page 165 of 336




advert in the UK and did not reprimand GSK.

The UK Office of Fair Trading (OFT) is investigating whether supermarkets and suppliers have been wrongly sharing information on prices. Are GSK consumer products involved?In 2008 the UK Office of Fair Trading (OFT) began an investigation into potential breaches of competition law by more than 20 companies, including GSK. The OFT is looking into claims that data on pricing was passed to rival companies through suppliers. It has asked GSK for our cooperation, but we have not been accused of breaking the law.

We do not tolerate unethical behaviour. Corrupt and anti-competitive behaviour undermines fair competition, inhibits economic development and is bad for economies, business and people. Our code of conduct sets out our expectations for employees and we conduct training to ensure that we operate within the letter and spirit of the law and maintain high standards of ethical business behaviour.

We are cooperating fully with the OFT and we will take disciplinary action, up to dismissal, if a GSK employee is found to have breached our policies or the law.

Back to top�

Page 166 of 336




Corporate Responsibility Report 2008Supply chainWe want to source from companies that maintain high labour and environmental standards.

Inadequate environment, health and safety (EHS) and human rights standards are an indicator of poor management.

This can impact on quality, compromise patient safety and impede continuity of supply of essential medicines. Association with poorly performing suppliers could also damage our reputation.

We conduct detailed assessments of new and existing suppliers to monitor their performance on EHS and human rights issues. We work closely with our suppliers to prevent disruptions to the supply of our key medicines.

Counterfeit drugs can pose a serious threat to patients. We build anti-counterfeiting features into our products and packaging and we take steps to prevent criminals from making and distributing fake GSK products

We are also working to assess the environment, health and safety impacts of our manufacturing suppliers.

Our Supply Chain

Number of suppliers: 90,000

Spend: ��8.4 bn

We buy goods and services from around 90,000 suppliers. Our supply chain is complex: it ranges from strategic relationships with suppliers that manufacture active pharmaceutical ingredients, intermediates, raw materials and packaging for GSK medicines to contracts for goods and services such as office equipment, cleaning and security.

Home Responsibility Supply chain

Page 167 of 336




Corporate Responsibility Report 2008Responsibility and our supply chainOur approach to ensuring high standards for our global suppliers includes:

Pre-assessments of potential suppliers to gather information and to help evaluation

Inclusion of human rights clauses in all supplier contracts and full environment, health and safety (EHS) requirements in contracts for critical suppliers

Review of EHS and human rights in routine supplier engagements (for example business performance meetings)

EHS audits of potential and existing suppliers

Regular progress monitoring and additional advice and technical support

Supplier contractsOur supplier contracts contain EHS requirements based on our global EHS standards and human rights clauses based on the International Labour Organization conventions and the UN�s Universal Declaration of Human Rights. Companies must agree to our EHS and human rights requirements before they can be included in the selection.

Risk-based approachOur supply chain is large and complex so we use a risk-based approach to target our efforts. We focus on �critical suppliers � which are mostly based in Europe, North America and Asia and account for approximately 30 per cent of our supplier spend.

Critical suppliers include contract manufacturers and suppliers that present the greatest risk to GSK on one or more of the following issues:

Relevance to the supply of essential medicines

Threats to continuity of supply

The value of affected products to GSK

Regulatory requirements

Hazards associated with manufacturing processes and materials

Environmental impacts

We develop long-term relationships with critical suppliers and conduct regular monitoring to support the uninterrupted supply of high quality materials and services to GSK.

Training for GSK procurement teamsWe train all new procurement employees in our standards and requirements for EHS and human rights .This emphasises their role in promoting compliance with the standards. Key procurement employees, including procurement managers, receive ongoing training on these topics.

In 2009, we will develop new sustainable procurement guidelines, with supporting training plans, which will focus on sourcing:

Home Responsibility Supply chain Responsibility and our supply chain

Page 168 of 336




Materials from sustainable sources

Products with recycled content

Energy-efficient equipment

Page 169 of 336




Corporate Responsibility Report 2008Human rights clauseOur supplier contracts contain a human rights clause (below) which is based on the International Labour Organizations conventions and the UN�s Universal Declaration of Human Rights.

We may amend the exact wording of the clause during negotiations with suppliers or during translation to suit local law. These changes will not reduce the contractual impact or intent of the clause.

The GSK standard contract clause for Ethical Standards and Human RightsUnless otherwise required or prohibited by law, the Supplier warrants, to the best of its knowledge, that in relation to the supply of goods or services under the terms of this Agreement:

1. it does not employ engage or otherwise use any child labour in circumstances such that the tasks performed by any such child labour could reasonably be foreseen to cause either physical or emotional impairment to the development of such child;

2. it does not use forced labour in any form (prison, indentured, bonded or otherwise) and its employees are not required to lodge papers or deposits on starting work;

3. it provides a safe and healthy workplace, presenting no immediate hazards to its employees. Any housing provided by the Supplier to its employees is safe for habitation. The Supplier provides access to clean water, food, and emergency healthcare to its employees in the event of accidents or incidents at the Supplier's workplace;

4. it does not discriminate against any employees on any ground (including race, religion, disability or gender);

5. it does not engage in or support the use of corporal punishment, mental, physical, sexual or verbal abuse and does not use cruel or abusive disciplinary practices in the workplace;

6. it pays each employee at least the minimum wage, or a fair representation of the prevailing industry wage, (whichever is the higher) and provides each employee with all legally mandated benefits;

7. it complies with the laws on working hours and employment rights in the countries in which it operates;

8. it is respectful of its employees � right to join and form independent trade unions and freedom of association;

9. The Supplier agrees that it is responsible for controlling its own supply chain and that it shall encourage compliance with ethical standards and human rights by any subsequent supplier of goods and services that are used by Supplier when performing its obligations under this Agreement.

The Supplier shall ensure that it has ethical and human rights policies and an appropriate complaints procedure to deal with any breaches of such policies.

GSK reserves the right upon reasonable notice (unless inspection is for cause, in which case no notice shall be necessary) to enter upon the Supplier's premises to monitor compliance by the Supplier of the warranties set out in the clause above and the Supplier shall, subject to compliance with law, furnish GSK with any relevant documents requested by GSK in relation thereto. {This sub-section will only be required where there is no general right of audit elsewhere within the Agreement}

Home Responsibility Supply chain Responsibility and our supply chain Human rights clause

Back to top

Page 170 of 336




Corporate Responsibility Report 2008Choosing suppliersWe conduct a detailed assessment of critical suppliers before they are selected.

Critical suppliers include contract manufacturers and suppliers that present the greatest risk to GSK on one or more key risk areas. We use questionnaires, on-site reviews and EHS audits to assess their performance on health and safety, environmental and human rights issues.

We assess potential new critical suppliers against our EHS standards. They must achieve a minimum audit score of 50 per cent against the standards if they are to join our supply chain. Following an audit, many suppliers who have not met our requirements implement plans to improve their EHS performance. We monitor their progress and in some cases provide opportunities for training and technical support to enable the supplier to achieve the required standards. We also expect suppliers who have established supply arrangements with us to make improvements and we monitor their progress through reviews and follow-upvisits.

The audits also include questions which help us identify potential breaches of the human rights clauses included in supplier contracts. Suppliers are asked for information on policies and practices relating to:

Age limits for employeesDiscrimination against employees and the local populationPrevention of abuse of individualsWages, benefits and working hours (whether they meet the legal minimum)Rights for workers to organise and recognition of worker organisations

These questions do not contribute to the EHS audit score, but may be a reason not to progress business with a supplier.

Read about our audit programme which ensures compliance with quality standards

Home Responsibility Supply chain Responsibility and our supply chain Choosing suppliers

Back to top�

Page 171 of 336




Corporate Responsibility Report 2008Monitoring and engagement

In order to maintain GSK standards in our supply chain, we routinely interact with our suppliers through reviews and follow-up visits by procurement, quality and EHS staff. We consider EHS and human rights issues in all these interactions.

We hold global and regional supplier review meetings where senior GSK managers interact with suppliers on key issues. We provide contract manufacturers with information on the EHS risks associated with the GSK materials they are producing or handling. Our supplier booklet won working with GSK includes our ethics policies and requirements.

We conduct regular EHS audits of critical suppliers of pharmaceutical and consumer healthcare products. We focus on the 150 higher-risk suppliers. Supplier facilities are evaluated against our EHS standards and must achieve a score of at least 50 per cent against these standards to demonstrate acceptable performance and to support continuing supply arrangements. Suppliers develop improvement plans based on the audit findings and we follow up to monitor progress against these plans.

Read a case study on how we helped a supplier to improve its EHS performance in 2008.

We will provide feedback to suppliers if we identify any issues through the questions relating to human rights . We will require corrective action if the issues present a potential breach of the human rights clauseincluded in supplier contracts.

Suppliers of promotional itemsMany of the gift items for our Indian business are sourced from within India in an industry with a higher risk of the use of child labour.

We conduct unannounced spot checks for these suppliers, often during the night. These focus on maintaining quality standards but are also used to check that suppliers are not using child labour. The spot checks are conducted by GSK procurement and regional sales staff.

We have used the findings from the programme in India to inform our promotional supplier qualification process in other regions. We have begun to conduct more detailed inspection of assembly sites where possible and have added extra checks in regions where child labour is more common.

Home Responsibility Supply chain Responsibility and our supply chainMonitoring and engagement


Back to top

Page 172 of 336




Corporate Responsibility Report 2008Monitoring and engagement

In 2008, we conducted 30 supplier audits and 20 reviews.The average audit score against GSK EHS standards was 62 per cent; the highest score achieved was 84 percent and lowest was 40 percent.

2008 EHS audit scores of key suppliers

* Americas = Canada, North America and South America regions

The higher average scores in North America and Europe, in contrast to the lower average scores in Asia, are largely related to the maturity of EHS management and the supporting legislative framework and its enforcement in these regions. The broad range of scores in the Asia region reflects the higher performing suppliers where there has been long term intervention from GSK. The lower scores relate to suppliers where we have undertaken initial audits and found significant deficiencies in EHS management and risk control.

Five suppliers failed to meet our minimum requirement of 50 percent against GSK EHS standards. Potential new suppliers that scored below the minimum level were either not progressed or work is underway to improve performance to acceptable levels. We work with existing suppliers to ensure necessary improvements are made within an agreed timeframe and that GSK standards are applied in our supply chain.

The most significant audit findings in 2008 occurred mainly in emerging economies. These included:

No infrastructure for fire protection and poor emergency response capabilitiesAbsence of fundamental risk controls for process safetyPoor control of exposure to hazardous substancesPoor waste management and environmental controlsFrequent regulatory findings

No significant issues were identified relating to the human rights questions we ask during audits.

Home Responsibility Supply chain Responsibility and our supply chainMonitoring and engagement


Page 173 of 336




In 2008 we continued to work with a number of key suppliers to help improve their EHS performance. This included:

Developing closer relationships - We have two full-time positions, in China and India, to support our work with audited suppliers and improve their EHS performance. Their work includes helping the suppliers to develop improvement plans and providing them with coaching opportunities. Read more in our case studyon how we helped a supplier to improve its EHS performance in 2008.

Attending supplier forums through the R&D-based Pharmaceutical Association Committee (RDPAC), an industry consortium in China. The forums provide the opportunity for GSK to engage with suppliers, and for supplier companies to take advantage of training and networking.

Making progress in a pilot project for a strategic supplier to achieve �Highly Protected Risk � (HPR) status. To achieve HPR status, a �best in class � insurance industry designation, companies must adopt an engineering approach to minimising property and supply chain risks. Our plan is to extend this to other strategic suppliers

Number and type of audits in 2008

Number of suppliers audited between 2002 and 2008

* Americas = Canada, North America and South America regions

Suppliers of promotional itemsIn 2008 we conducted five unannounced spot checks of promotional goods suppliers in India (at least one visit for each company supplying promotional goods to our Indian business in 2008). These uncovered no

Americas* Europe Asia Africa Total

Type of supplier � � � � �

Primary (raw materials, intermediates and active pharmaceutical ingredients) 3 12 17 0 32

Pharmaceutical (formulations) 3 5 0 1 9

Consumer Healthcare (excipients, actives, raw materials) 0 1 11 0 12

Type of engagement � � � � �

Audit 4 13 16 0 33

Review 2 5 12 1 20

Average audit score (per cent) 79 68 53 �- �B$

�Totalnumbervisits

Americas* Europe Asia Africa Cumulative Total number visits

2002 9 0 8 1 0 9

2003 18 0 12 6 0 27

2004 29 3 9 17 0 56

2005 40 7 8 23 2 96

2006 32 0 13 18 1 128

2007 55 10 8 37 0 183

2008 53 6 18 28 1 236

Page 174 of 336




evidence of child labour.

Page 175 of 336




Corporate Responsibility Report 2008Supplier diversitySmall and minority-owned companies are often under-represented in the supply chains of large companies.

In response, the US government and many large companies require their suppliers to source from diverse companies. The Broad-Based Black Economic Empowerment Bill 2003 in South Africa includes similar requirements.

We are working to increase the diversity of our supply chain by providing opportunities for small, diverse businesses to provide us with goods and services. This helps diverse suppliers to sustain their businesses, create jobs and boost their local economies. Our business also benefits. Beyond complying with regulations, supplier diversity encourages innovation and exposes us to new perspectives and fresh ideas.

US programmeIn the US, we have a dedicated team working to create opportunities for diverse suppliers to work with GSK and to channel our procurement spend to women and minority-owned companies. Its activities include:

Participating in national and local diversity councilsMentoring high-potential diverse suppliers and providing improvement grants to help them expand their business with GSK and other corporations. Read more in our case studySponsoring diverse business leaders to attend executive programmes at the Tuck School of Business and Kellogg School of ManagementSponsoring and attending outreach and networking conferences

We co-sponsor the Congressional Black Caucus Foundation (CBCF), a non-profit organisation that supports African Americans and under-served communities in the US. We are donating $500,000 between 2005 and 2009 to the Foundation to provide training to help make diverse businesses more competitive. We also support an initiative, run by the CBCF, to help change federal policy that can restrict long-term relationships between minority- and women-owned businesses and major corporations.

We sponsor Roanoke Online, a technology company that hosts an online database and electronic sourcing system for diverse suppliers. This gives large companies, including GSK, better access to diverse suppliers. Corporations gain access to a large, diverse pool of contractors, which ultimately helps them lower their costs, while the small diverse suppliers get the chance to grow their businesses through increased opportunities to supply companies traditionally beyond their reach.

As part of the Adopt a Neighbourhood for Development initiative, our procurement and community relations teams work with local communities in Durham, North Carolina, and Philadelphia, Pennsylvania. These areas are historically deprived and are often overlooked by companies when choosing where to locate their businesses. GSK provides an annual grant to support self-development within the communities to make these areas more attractive as business locations.

Outside the USGSK �s dedicated supplier diversity team is based in the US, but all procurement employees worldwide are responsible for supporting diverse suppliers where possible.

We are a sponsor of the Global Link Programme as part of our role on the International Advisory Board of the US National Minority Supplier Development Council. The Programme helps diverse suppliers develop partnerships with local businesses around the world. In collaboration with two other pharmaceutical

Home Responsibility Supply chain Responsibility and our supply chain Supplier diversity

Page 176 of 336




companies, we paid for ten US-based minority-owned companies to visit South Africa in late 2007. The companies met diverse South African businesses and got the chance to form partnerships to help them compete globally. We have also participated in similar trips to Australia, Brazil and China. The initiative has enabled GSK to invest in the local economies of communities we serve and helps ensure our supplier base reflects the diversity of those communities.

GSK is a member of the new UK Minority Supplier Development Council. The Council forms a link between corporations and certified minority business enterprises, with the aim of increasing procurement and business development opportunities.

Page 177 of 336




Corporate Responsibility Report 2008Fair treatment of suppliersIt is important that we foster relationships with our suppliers which are characterised by mutual trust and respect.

GSK has established procurement policies which require high standards of ethical conduct and integrity. Our general terms and conditions are on our website.

As part of our supplier review process, we have a two way dialogue to identify areas for mutual improvement and to provide an environment where suppliers can discuss issues and present new ideas.

We support impartiality in all phases of the procurement cycle. Our global electronic bid system ensures all suppliers are treated fairly and equally. The vast majority of suppliers that provide goods and services to GSK are registered on the system. Companies that are invited to bid to supply GSK all receive the same information at the same time, for example invitations to compete and specifications of the supplies required.In 2008, the system managed over 8,000 bidding and negotiation-related events in over 50 countries. For highly competitive goods and services we allow suppliers full transparency of seeing where their bids rank against their competition.

Payment of suppliers

From September 2008 GSK changed its standard payment terms for uncontracted suppliers in the UK and US from 30 days from the receipt of the invoice to 60 days. We will review our terms and conditions with contracted suppliers on contract renewal or earlier.

This step has been taken as part of a project to reduce working capital. We recognise that this may impact the cash flow of our suppliers. However, the new 60-day term brings us more in line with the practice in other industries and is faster than the terms set by some other companies.

We realise this may cause genuine financial difficulty for some organisations and we evaluate the implications of this on a case-by-case basis.

�

Home Responsibility Supply chain Responsibility and our supply chainFair treatment of suppliers

Page 178 of 336




Corporate Responsibility Report 2008Maintaining qualityMaintaining the quality of the products we make and the materials we buy is essential to the safety of patients and the success of our business.

We conduct quality assessments for all suppliers of ingredients and packaging materials used in all of our products. We agree specifications for our ingredients and packaging materials with our suppliers and apply a set of global auditing standards for each type of ingredient and packaging material that we buy.

We use a risk-based approach to determine the frequency of audits. In 2008 we conducted 558 audits of our ingredient and packaging material suppliers, compared to 776 in 2007 and 740 in 2006.

On receipt at GKS sites, samples are taken and testing is performed according to a testing protocol. All samples are tested for identity. Every batch is also tested against our quality specification.

Examples of additional measures in place to maintain quality in our supply chain and prevent contamination include the use of dedicated transport, use of tamper evident seals and the use of sophisticated analytical tools to check the authenticity of the materials we receive.

Helping suppliers to meet our quality standards

We conduct quality assessments of all potential suppliers. This enables us to identify companies that meet our required standards as well as those we can work with to make the necessary improvements.

For example, we identified one of our existing chemical suppliers in Asia that had the expertise to supply the final active ingredient for a GSK product. We worked closely with the supplier to help them develop the technical processes and quality standards to begin trial manufacturing in 2001. This included site visits to advise on configuration of plan and building modifications and assistance in preparing documentation required by regulators. In 2006, the US Food and Drug Administration conducted a four day quality and compliance inspection of the site, which resulted in no adverse findings and approved the site for supply to the US market.

Raising employee awareness of our commitment to quality

In 2008, Andrew Witty, GSK �s CEO, endorsed a new, internal quality statement which stresses the importance of quality across all of our business activities, including the critical aspect of product quality. We raised awareness of this statement through discussion at internal Quality Councils throughout our business units, through new articles on our global intranet site, myGSK, and through posters for display at all facilities.

Quality statement

Quality is at the heart of all activities that support the discovery, supply and marketing of products to our patients and customers. Quality is critical to building trust with society and, therefore, to our future business success.Andrew Witty, Chief Executive Officer

Home Responsibility Supply chain Maintaining quality

Page 179 of 336




Corporate Responsibility Report 2008Security of supplyEnsuring a continuous supply of high quality medicines is essential to the patients who depend on our products, as well as to the success of our business.

It is vital that security of supply is not compromised at any stage of the distribution chain. We prepare for major incidents that may disrupt supply, ranging from large-scale theft of products to natural and man-madedisasters near a facility.

Strategy directors from each therapy area have overall responsibility for security of supply. Divisional heads meet our procurement teams every month to discuss any potential issues.

GMS (our manufacturing business) implements contingency plans for �medically critical� products. We define products as �medically critical� if life-saving or those where if they were not available to patients, there is likelihood of serious detriment to health and there is no known alternative. These plans are defined on a product-by-product basis and may include holding sufficient stocks of products or active pharmaceutical ingredients.

We work with all critical suppliers to encourage them to implement their own contingency plans. In high-riskcountries we will set up joint ventures to ensure that we maintain control over the distribution chain. We have three global contracts for suppliers that deliver goods between GSK facilities and distribute products to market. We conduct regular high-level operational reviews of these suppliers, which include security elements.

Read about the measures we are taking to protect our employees in the event of a pandemic flu outbreak to ensure the supply of critical medicines is not disrupted.

Home Responsibility Supply chain Security of supply

Page 180 of 336




Corporate Responsibility Report 2008Counterfeiting

According to the World Health Organization (WHO), less than one per cent of pharmaceutical products sold in developed countries are counterfeit, but in the developing world this figure may be higher than 10 per cent, and up to 30 per cent in some countries.

Counterfeit drugs come in many variations, and may contain:

None of the legitimate active ingredient

The active ingredient in reduced or sub-therapeutic amounts

A completely different and/or inappropriate active ingredient

Impurities such as unapproved colourants or microorganisms

Packaging that falsifies the product description or expiry date

Most counterfeit drugs are not subject to quality control, hygiene standards, testing of ingredients and monitoring of product specifications or equipment. Counterfeiting is a threat to public health, potentially causing harm to patients and even death.

We add anti-counterfeiting features to our product packaging. These include holograms, security seals, complicated background patterns that are difficult to photocopy or scan, as well as a wide variety of covert identifiers which are added using print technologies and sophisticated markers. These help us to identify counterfeits and gather evidence against offenders. Our Packing Design Technology and Security team in the UK carries out forensic examinations of all suspected counterfeit GSK products.

Our sales representatives worldwide also play an important role in helping to discover counterfeit products through continual observation of the local market. Our Corporate Security department investigates every potential case of counterfeiting. It uses internal and external investigators to collect information, which we then assess and report to the relevant government authorities to set in motion official law enforcement action.

As well as removing fake products from the market, one of our primary aims is to trace the products back to source, to shut down the manufacturers and their partners (for example the packaging printers and distributors). We provide training for regulatory authorities, such as the State Food and Drug Administration (sFDA) in China, law enforcement agencies and customs officers in many parts of the world.

GSK works very closely with the wider pharmaceutical industry to investigate cases of counterfeiting and we also raise awareness with governments internationally, pressing for stricter laws and more severe penalties. GSK is a founding member of the Pharmaceutical Security Institute (PSI), which coordinates information collection and investigations within the industry internationally. The PSI is influential in helping to shape anti -counterfeiting policy among national governments and international organisations. Together with the PSI, GSK is a major contributor to the WHO �s internationally represented anti-counterfeiting working groups.

Internet pharmacies

There is evidence that a large number of internet pharmacies are involved in the sale of counterfeit or diverted medicines or illegal generic substitutions (switched at the time of delivery for the requested

Home Responsibility Supply chain Counterfeiting


Page 181 of 336




brand name product).

Some internet pharmacies provide sub-standard product, engage in a fraud against the customer (using their credit card information for other fraudulent activity) and ignore local laws and regulations relating to licences, prescriptions and patient information, seemingly operating with immunity from prosecution.

Internet pharmacies have flourished over the past few years and it is likely that this rise will continue as it provides a lucrative, low-risk opportunity for direct selling to patients in a global and largely unrestricted market.

The UK Medicines and Healthcare products Regulatory Agency estimated in 2004 that 600,000 British patients purchased prescription only medicines on the internet and the US FDA reported that 100,000 pills are purchased through internet pharmacies each month in the state of Kentucky alone.

Page 182 of 336




Corporate Responsibility Report 2008Counterfeiting

In 2008 there were 289 reported cases of counterfeiting of GSK products.

These resulted in 94 raids, during which 84 suspected counterfeiters were arrested and �7 million worth of counterfeit products were found.

Of the 94 raids, 22 took place at criminal manufacturing facilities and 54 at wholesale/distribution outlets. The 22 factories represent criminal operations that were capable of mass production of counterfeit medicines and other healthcare products. The raids on these facilities undoubtedly prevented huge amounts of counterfeit product from entering legitimate markets around the world, much more than the �7 million worth of product found at the time of the raids.

In 2008 there was a reduction in the number of reported cases of counterfeiting. We see this as a positive sign that anti-counterfeiting measures are working.

The number of raids by GSK has risen by 30 per cent as a result of our own proactive security and investigations activity. The number of raids is not directly related to the number of reported cases of counterfeits, these are based on intelligence from our security and investigations activity.

GSK is recognised as a leader by the industry in combating counterfeit medicines, and currently chairs the Pharmaceutical Security Institute.

Anti-counterfeiting

��

Home Responsibility Supply chain Counterfeiting Performance


�

Number of reportedcases of counterfeit

Number of raids

Numberofarrests

Value of counterfeitproducts found during raids

2008 289 94 84 �7 million

2007 429 71 127 �15 million

2006 248 57 94 �10 million

2005 334 47 31 �13 million

Page 183 of 336




Corporate Responsibility Report 2008Case studiesMentoring diverse suppliers in the USCallis Construction Services (CCS) is a minority-owned contracting company in Durham, North Carolina. The company�s President, Jesse Callis, took part in our diverse supplier mentoring programme, beginning in 2004, which helps suppliers form partnerships with GSK and other large corporations.

As part of the programme, we assessed CCS�s business processes and identified issues preventing the company becoming a GSK preferred supplier. Concerns ranged from management accessibility to the ability to scale up their supply to the needs of GSK. The company implemented improvements based on our recommendations which enabled it to become a preferred supplier and win business worth around $2.8 million.

The success of this partnership enabled CCS to contribute to its local community. It paid for two employees to attend a local university and Mr Callis developed a training programme with Durham Technical College which prepares minority construction workers for management positions on major projects in the area.

When asked about his relationship with GSK, Mr Callis said, 2GSK has been a wonderful mentor. They are a real leader in their commitment and actions to help diverse minority suppliers. In my case, they provided assistance that has led to a very significant growth of my business. This in turn has provided jobs for others in the Durham and surrounding area ensuring that monies paid by GSK stay in the local communities. This is a win for everyone involved.3

Helping to improve supplier performance In some cases we provide assistance to suppliers that fail to meet our minimum EHS and quality standards to improve their performance. This enables companies to improve their work practices and win more business. It helps us to develop the supply chain we need to provide a secure supply of high quality medicines.

For example, in 2008 we provided support to a potential supplier of active pharmaceutical ingredients in India.The supplier received an audit score of 41 per cent, below our 50 per cent minimum standard. Following the audit we made recommendations for improvement, provided coaching and facilitated meetings between the supplier and expert consultants.

In 2008 the supplier achieved an audit score of 55 per cent and was accepted as a GSK supplier. The audit found that the company is managing key risks effectively and has established a detailed improvement programme. We will continue to monitor progress against this improvement plan.

The success of this collaboration relied on the efforts of GSK staff as well as the willingness of the supplier to recognise that improvements were needed. It has resulted in a more secure supply chain for GSK and a safer working environment for workers at the facility.

Home Responsibility Supply chain Case studies

Page 184 of 336





What are you doing to raise standards in your supply chain?

We have long-term relationships with our critical suppliers and we offer them training and support to help them raise standards. Our monitoring process is a key part of raising awareness of our expectations and identifying areas where suppliers need to improve. We work with our suppliers to help them make the necessary changes identified.

Are there human rights risks in your supply chain?

GSK �s supply chain is large and complex, and like all similar supply chains, contains a risk of human rights violations. These risks vary considerably based on the type of supplier and the goods or service we are sourcing. Our manufacturing and R&anp;D suppliers employ skilled workers so there is a lower risk of human rights violations. Our EHS audits aim to ensure good working conditions at these supplier facilities. There are considerably higher human rights risks in suppliers that employ low-skilled workers, for example promotional goods suppliers. We conduct spot checks of these suppliers in India.

Our supplier selection process aims to ensure we only enter relationships with suppliers that respect human rights. We also include clauses in contracts with all suppliers which specify that upholding human rights is a condition of doing business with GSK.

What are you doing in your supply chain to plan for a flu pandemic?

We have implemented a contingency plan to ensure our operations, and the supply of medically critical products, are not compromised by a flu pandemic. We are now encouraging our critical suppliers to implement their own contingency plans.

You are outsourcing more manufacturing. Will this mean you have less control over your products, increasing risk for patients?

The manufacture of all our medicines and vaccines is closely controlled and subject to the same quality standards, regardless of whether we produce them ourselves or outsource the process to contract manufacturers. Before outsourcing any stage of the manufacturing process, we confirm that the contractor can carry out the required processes to our high standards. All contract manufacturers must also be approved by relevant regulatory authorities, and are subject to inspection by GSK and regulators.

Home Responsibility Supply chain Q&As

Page 185 of 336




Corporate Responsibility Report 2008Environmental sustainabilitySustainability has been defined as meeting the needs of today without compromising the ability of future generations to meet their own needs.

GSK is embarking on a journey towards sustainability that we expect to continue for many years. As well as benefiting the environment, our sustainability efforts encourage innovation that provides a better outcome for society and help us to reduce costs.

Our early environmental management programmes focused on controlling emissions and wastes from our operations through treatment and disposal systems. Our approach to sustainability is to change thefundamental process to reduce the amount of resource consumed, avoiding waste at source rather than simply treating the waste and emissions that arise. We have already begun changing our business and developing innovative new manufacturing processes.

We have set initial sustainability goals to:

Double the average efficiency with which we convert raw materials to finished products for new products by the end of 2010 from a 2005 baseline

Reduce our energy and climate change impact per unit of sales from 2006 levels by 45 per cent by 2015

Eliminate CFCs in our products and equipment by the end of 2010

Examples of our sustainability initiatives include

Reducing the amount of material resources we use such as raw materials and fossil fuels

Minimising waste and recycling unavoidable waste

Redesigning production processes to eliminate the production of toxic materials

Reducing energy consumption and the associated carbon emissions

We manage our Environment, Health, Safety and Sustainability (EHSS) programme according to a framework that sets out consistent standards of employee health and safety, environmental protection and sustainability. This framework acts as an internal regulatory system that reflects our understanding of our risks to ensure our operations comply with laws and regulations. It provides information, tools and training to help everyone at GSK meet our standards. It includes targets as set out in the Plan for Excellence to address our fundamental environmental and sustainability impacts. We also work with our suppliers to help them become more sustainable.

Openness and transparency are fundamental to our sustainability performance and we will continue to engage with stakeholders to share views and dilemmas.

Home Responsibility Environmental sustainability

Back to top

Page 186 of 336




Corporate Responsibility Report 2008Plan for excellenceOur EHSS Plan for Excellence sets out our ten-year strategy to improve environment, health, safety and sustainability performance through to 2015.

The details are developed in concert with each business so that the Plan is integrated with business plans and specific actions are identified by each business. The Plan is reviewed every five years and new targets are set. It is designed to support GSK �s business plans and consists of three strategic priorities:

Environment, health and safety fundamentals embedded in the business � to produce and sustain high EHS performance we need to combine structured systems with the attitudes and values that create a positive EHS culture. To achieve this we need to embed awareness of environment, health and safety concerns and systems in all GSK activities

Environmental sustainability � to embrace environmental sustainability as a driver for competitive advantage we need to define the principles of environmental sustainability and progressively integrate them into the business, translating them into practical action

Open and transparent external relations � external stakeholders who have a legitimate interest in the company �s environment, health, safety and sustainability affairs should have ready access to relevant information and the opportunity for dialogue about issues that concern them. Building open relationships and partnerships can lead to business opportunities, while failure to engage may damage our reputation

Each of these strategic priorities is supported by plans with performance targets in key areas.

GSK has worked with our External Stakeholder Panel to help set out our plan and to review our annual performance.

TargetsOur EHSS Plan for Excellence includes company targets to improve environment, health, safety and sustainability performance. These are based on site based, practical improvement plans and forecasts from all manufacturing operations.

Read more about how targets are set and view details of our company targets

Home Responsibility Environmental sustainability Plan for excellence

Back to top

Page 187 of 336




Corporate Responsibility Report 2008TargetsWe set company-wide targets to drive continuous improvement in managing our most significant environment, health, safety and sustainability impacts (see table).

We compare proposals for company targets put forward by operations with benchmarking information and our environment, health and safety professionals, senior managers and management teams throughout the business closely review them and agree on the final target numbers.

We believe it is important to set and achieve targets because lower resource consumption and less waste benefit the environment and GSK. Although we are on track to meet most of our targets, we recognise that some will be difficult to meet within the time we have set ourselves. We explain progress to the targets in the discussions on the individual metrics.

Read our health and safety targets

Targets and progress 2008

Home Responsibility Environmental sustainability Plan for excellence 1�+,��

Target Progress from 2006 to 2008

Sustainabilitytargets

Material efficiency of new processes for actives

2% average for the period 2005-2010

Material efficiency of 1.6% achieved by 2008

Energy for operations and transport 20% reduction per unit of sales from 2006 baseline by 2010

Increased less than 1% per ��sales CER

Climate change impact from energy for operations and transport1

20% reduction per unit of sales from 2006 baseline by 2010

Increased 2% per ��salesCER

Water 2% annual reduction from 2006 baseline per unit of sales

Reduced 11% per ��salesCER

Fundamentaltargets

Wastewater (chemical oxygen demand)

3% annual reduction from 2006 baseline per unit of sales


Solid waste 1% annual reduction from 2006 baseline per unit of sales


Ozone depletion2 100% elimination by 2010 from 2006 Eliminated 83%

Air emissions (volatile organic emissions)

2% annual reduction from 2006 baseline per unit of sales


EHS audit scores Average: 82% by 2010 Minimum: 70% by 2010

Average 78% Minimum 62%

Page 188 of 336




1. Climate change impact is measured as CO2 equivalent emissions2. Includes ozone depletion potential from production and refrigeration losses Targets and performance normalised by sales are based on a constant exchange rate (CER).

SGS verified

Back to top

Page 189 of 336




Corporate Responsibility Report 2008Journey to sustainabilityJames Hagan, Vice President, Corporate Environment, Health, Safety and Sustainability, charts GSK�s history of environmental management and describes how the company is making the shift towards sustainability.

Sustainability is defined as meeting the needs of today without compromising the ability of future generations to meet their own needs. For GSK to be sustainable, we need to be efficient in the use of resources, including energy, water and raw materials and we need to use renewable resources. As resources become more scarce and expensive, sustainability and cost will be more closely linked. Ultimately, this means that our ability to continue to manufacture affordable medicines requires us to address sustainability.

We have been working towards sustainability since 2001 when GSK was formed. Similar to other industries at that time, the companies that formed GSK started out managing their emissions and waste using treatment and disposal methods and considered management of waste a necessary cost.

We soon recognised that while these �bolt-on � control measures are essential, they will only ever incrementally improve the impact of waste. To achieve a step-change towards sustainability, we need to make our processes more efficient to prevent waste and emissions being produced in the first place. This fundamental change requires investment in innovative solutions. Through innovation we can create more efficient processes which use less resource and reduce costs. This virtuous circle is completed when we take a portion of our sales and reinvest it in innovation. Sustainability reflects a �built-in � approach.

To begin guiding our business towards sustainability, we developed a management framework which set out a policy and consistent standards for everyone at GSK to follow. We produced a plan for 2001-2010 whichoutlined a timetable for achieving the goals set out in the framework and set five-year improvement targets. This plan was refreshed for the period 2006 to 2015.

The plan identified manufacturing efficiency as the first area where we could make significant progress toward sustainability. We used a material balance � a calculation that looks at the amount produced compared to the amounts of raw materials used � to measure our material efficiency and set animprovement target to double the efficiency for our new products. Our Eco-design toolkit supports thedevelopment of these more efficient manufacturing processes. Read more about process design. We have already had some success with new medicines and we think we can improve the processes for some of our existing products as well.

Climate change, one of the greatest challenges facing mankind, is a key part of our sustainability strategy. We have set targets to almost halve the amount of energy we use and the CO2 we produce per unit of sales by 2015.

Our sustainability focus extends beyond manufacturing to all aspects of our business, including R&D, sales and other activities. It also includes environmental product stewardship, the responsibility we have for theenvironmental impact of our medicines.

Within GSK, sustainability has started to take root. As an example, our Nutritional Healthcare business has a comprehensive sustainability programme, please read this casestudy for details. They are working with suppliers to examine the lifecycle and biodiversity impacts of raw materials used, developing a �zero waste to landfill� manufacturing approach, using recycled materials for packaging and developing innovative ways to recover used bottles through reverse vending. Our Consumer Healthcare business has also developed asustainability strategy called �Bright Green � which includes packaging, climate change, water use, product stewardship and total supply chain goals.

Home Responsibility Environmental sustainability Plan for excellence Journey to sustainability

Page 190 of 336




Although we have made progress in the Nutritionals business and in certain other areas, achieving our fundamental environmental improvement targets and making progress toward sustainability continues to be a challenge. In 2009 we will assess how we can achieve our targets. Of course, we will learn from both success and failure and each year we will explain why we succeeded or failed. We will also continue to broaden our view of what sustainability means to GSK. So far we have focused our attention on sustainabilityon R&D and manufacturing. Going forward we know we need to broaden that focus to include our sales force and offices.

I realise that we have just begun this journey, and that we will need all our commitment and innovation to succeed. Our internal Sustainability Council composed of senior managers is leading our efforts. We also have an External Stakeholder Panel that gives feedback on our approach and performance and suggestsimprovement alternatives. I recognise the value that all of our stakeholders can bring so I welcome your views on our approach. Please feel free to let me know your thoughts by emailing me at [email protected].

Back to top�

Page 191 of 336




Corporate Responsibility Report 2008Managing environment, health, safety and sustainabilityWe manage our environment, health, safety and sustainability issues using a management system aligned with recognised management system standards such as ISO 14001 and OHSAS 18001.

Our management system is based on a structured framework that starts with a vision and policy. The policy is supported by standards, guidance materials, tools, training, recognition and audits that assist the business to manage environment, health, safety and sustainability at their sites throughout key business operations. Systematic audits assess sites � adoption of a management systems approach to manage their risks.

The framework defines our:

EHSS vision and policy which set out the broad principles we expect our operations to meet

EHSS standards that outline specific requirements for our company based on our EHSS risks. These meet or exceed applicable laws and regulations and are consistent with the international standards ISO14001and OHSAS 18001 based on a management systems approach

EHSS guidelines that support the EHSS standards by providing further information on the requirements of the standards and setting out an approved approach for achieving compliance. They incorporate good practice from both within and outside GSK. A wide range of information supplements the EHSS guidelines. This includes technical information and training materials to help our employees understand and implement our EHSS management system

Audits that assess the implementation of management systems

Reward and recognition that recognises teams who have made outstanding progress towards achieving our goals

The framework includes a Plan for Excellence that sets out our strategy to improve our EHSS performance to 2015.

Improving efficiency through greater integration

Our Horlicks manufacturing facility near Delhi, India is certified to the international quality standard ISO9001, the environmental standard ISO14001 and the safety standards ISO22000 and OHSAS18001. In 2008, the site introduced an integrated management system to reduce the burden of complying with these separate standards.

The new system has improved efficiency and cut costs at the plant by reducing the amount of documentation required and the number of audits. Employees can now just use one instruction manual rather that separate documents for each of the four standards.

This project won first place in the 2008 CEO �s EHS Excellence Awards, Initiative-Health & Safety category.

Home Responsibility Environmental sustainability Managing EHS and sustainability

Page 192 of 336




Corporate Responsibility Report 2008EHSS vision and policyVisionGSK �s environment, health, safety and sustainability (EHSS) vision is to achieve sustainable competitive business advantage and environmental sustainability through leadership and excellence.

Our EHSS vision supports our mission to help people do more, feel better and live longer.

PolicyOur EHSS policy describes to employees and external stakeholders what we want to accomplish in environment, health, safety and sustainability. It sets out our aspiration of global leadership and excellence and outlines the broad scope of our plans, and how they will be achieved.

A revised policy was approved by the Corporate Executive Team (CET) in 2008:

Leadership and continuous improvement cultureWe will be leaders in EHSS performance, protecting the environment and the communities in which we work and enabling healthy motivated employees to be fully engaged with our success. We will maintain a culture of continuous improvement.

EHS fundamentals, risk and impactsWe will embed EHS fundamentals into the fabric of the business by implementing management systems, EHS governance and risk management practices to address risks and impacts from our facilities,processes, contract research and manufacturing organisations, and suppliers.

SustainabilityWe will integrate sustainability principles into all aspects of our healthcare business by working with our stakeholders, operating within environmentally sustainable limits, lowering our ecological footprint, enhancing social equity and addressing future issues.

Open EHSS communicationWe will be open and transparent with all stakeholders about our efforts to address our EHSS responsibilities and our EHSS performance.

The Corporate Executive Team (CET) will ensure risks are tracked until mitigated and that communication of the more significant risks is escalated within the business management structure, as commensurate with the risks and impacts involved. The CET will ensure effective management and involvement of staff with clearly assigned accountability and responsibility.

Home Responsibility Environmental sustainability Managing EHS and sustainabilityEHSS vision and policy

Back to top�

Page 193 of 336




Corporate Responsibility Report 2008Training and awareness We provide detailed guidelines and technical information as part of the framework for managing environment, health, safety and sustainability (EHSS).

Training and awareness programmes, based on the guidelines, inform employees at all levels about risks, to create a culture where EHSS considerations are integral to the way we do business, and to help employees understand the EHSS issues specific to their jobs.

Most EHSS training is managed by the sites and is specific to job roles. EHSS professionals receiveinduction training and undertake regular training to ensure they are aware of the latest technical information in their fields. Business leaders also receive training so that they understand their responsibilities. In 2008 we reviewed our training programme and found opportunities to improve and standardise EHSS training across GSK in 2009. We will also include EHSS competency as part of the job grading programme for all employees with EHSS responsibilities.

Read more about health and safety training.

We raise employee awareness of environment, health, safety and sustainability and provide training support materials through our intranet, regular internal publications and events.

myEHSS intranetOur intranet is becoming the primary mechanism to communicate within the company. There are several areas of the GSK intranet that support EHSS including the main site known as myEHSS. myEHSS is the way news about EHSS programmes is shared. It is the source of supporting materials for the framework for managing EHSS such as the policy, standards and guidelines and for training materials and otherdocuments about EHSS. myEHSS is also the basis for the information system with which we collect the data for measuring our EHSS performance and reporting results within GSK and to our externalstakeholders. GSK sites use the data to manage their EHSS programmes and risks and to measure their progress.

PublicationsOur EHSS publications are available electronically and in print. We publish articles on environment, health, safety and sustainability in Spirit, our internal magazine and brief news stories on internal web pages.

EventsOur sites participate in Earthweek, an annual, voluntary programme to raise awareness of strategic environmental issues and to encourage integrating environmental concerns into the culture. Held in June to coincide with the World Environment Day, Earthweek encourages employees to think about their impact on the environment. In 2008, over 13,000 employees from 48 sites in 24 countries took part in Earthweek. We sent information kits to all sites to help them develop their own activities including tree planting, clearing litter from a local forest and involving local school children in drawing competitions with an environmental theme.In 2009, operations will be encouraged to continue their voluntary environmental activities but they will no longer be organised centrally.

AwardsThe CEO �s EHS Excellence Award website was a vehicle for sharing the innovative EHS practices of sites or teams that won the annual awards. In 2009 this will be replaced by the website supporting the CEO �sAwards for Sustainability.

Home Responsibility Environmental sustainability Managing EHS and sustainabilityTraining and awareness

Page 194 of 336




Page 195 of 336




Corporate Responsibility Report 2008Audits and compliance

We regularly audit our operations, contract manufacturers and key suppliers to assess systems to manage risks and impacts, compliance with legislation and implementation of our environment, health, safety and sustainability standards. Audits also assess whether appropriate management systems are in place to improve performance and maintain compliance. Our internal auditors are certified as lead auditors against the ISO 14001 and OHSAS 18001 standards.

All GSK manufacturing and R&D sites are audited at least once every four years. The actual frequency is determined by the level of risk and impacts and a site�s performance at managing those risks. In 2008, we audited 31 sites.

In 2006, we began a four-year programme to certify all GSK pharmaceutical and consumer healthcare manufacturing sites to the international environmental standard ISO 14001 and the health and safetystandard OHSAS 18001. In 2008, we certified three more sites, bringing the total to 38 per cent of our pharmaceutical and consumer healthcare manufacturing sites certified to ISO 14001.

Home Responsibility Environmental sustainability Managing EHS and sustainabilityAudits and compliance


Back to top

Page 196 of 336




Corporate Responsibility Report 2008Audits and compliance

In 2008, we audited 31 GSK sites for implementation of our EHS standards and conducted follow up visits for 17 more. The average score was 78 per cent, the same as 2007. The lowest score we consider to be acceptable is 50 per cent. No site scored below this level with the lowest score at 62 per cent in 2008.

Two sites achieved �leadership � scores above 90 per cent (three in 2007), while a further 11 achieved scores of at least 80 per cent (14 in 2007). High audit scores indicate good management systems and work practices. Sites that achieve audit scores of 90 per cent or higher are considered to be in a leadership category and receive certificates signed by the Chief Executive Officer. Sites that achieve 80 to 89 per centreceive certificates of achievement signed by their business heads.

There were no critical findings related to the environment. These are findings that indicate a high probability of incidents with potentially serious consequences. There were two critical findings related to health and safety. Read about our performance on health and safety issues. The best performance on environmental issues was in waste and water management and sites were generally weakest on assessment of risks for environment, health and safety.

Twenty-six of our 78 Pharmaceuticals and Consumer Healthcare manufacturing sites are now certified to both the ISO 14001 and OHSAS 18001 standards (a further four are certified to ISO 14001 only). OneConsumer Healthcare R&D site is certified to both standards and one GSK vaccines site and one Pharmaceuticals R&D site are certified to ISO 14001. A further five sites are confirmed for certification audits in early 2009.

The certified sites are in Argentina, Australia, Brazil, China, Egypt, France, Germany, India, Italy, Japan, Kenya, Mexico, Panama, Philippines, Poland, Saudi Arabia, Spain, Turkey, the US and the UK.

ISO certification is important because it indicates good management systems in place, and sites that have been successfully certified have found the experience beneficial. In order to achieve our 2010 target to certifyall pharmaceutical and consumer healthcare manufacturing facilities, we will upgrade the level of management systems implementation. At the same time we will embark on the planned expansion of ISO certification into R&D and vaccines facilities.

ComplianceThere were no environmental fines or penalties in 2008, continuing our compliance record from 2006 and 2007. However, we remain vigilant to stay in full compliance with all environmental laws and regulations.

Home Responsibility Environmental sustainability Managing EHS and sustainabilityAudits & compliance performance


Back to top

Page 197 of 336




Corporate Responsibility Report 2008Reward and recognition The CEO�s EHS Excellence Awards recognise and reward GSK sites that show leadership in EHS and sustainability.

They highlight innovation and examples of good practice in EHSS management to share with other sites. Each winner receives a trophy and selects a charity to receive a donation from GSK

Both individuals and teams can enter the competition. A shortlist is drawn up by an internal review committee and winners are chosen by a panel that includes experts from academia, government and public interestgroups.

Awards are divided into three categories:

Green Chemistry/Green Technology � for projects that benefit environment, health and safety through new and efficient chemistry or technology

Environmental Initiative � for programmes that demonstrate improvements in environmental management or performance

Occupational Health & Safety Initiatives � for programmes that demonstrate improvements in health and safety management and performance

In 2008 � the seventh year of the awards � there were 89 entries from 23 countries and from all GSK businesses. Honours went to eleven projects from Australia, Belgium, India, the UK and the US.

Read about winning environmental projects throughout this section and about winning health and safety projects in Our People section.

In 2009, the awards will be upgraded to the CEO �s Awards for Sustainability with new categories and new judging criteria supporting increasing focus on sustainability.

Home Responsibility Environmental sustainability Managing EHS and sustainabilityReward and recognition

Back to top

Page 198 of 336




Corporate Responsibility Report 2008Management of EHSSOverall responsibility for environment, health, safety and sustainability issues rests with the Corporate Executive Team and the Board.

The Chief Executive Officer represents these issues on the Board. The Board Chairman is the champion for GSK �s climate change programme. The Chief of Staff has operational management responsibility for EHSS on the Corporate Executive Team. The Vice President, Corporate Environment, Health, Safety and Sustainability (CEHSS) has operational responsibility for EHSS, reports directly to the Chief of Staff and has a dotted line reporting relationship to the President of Global Manufacturing and Supply.

Environment, health, safety and sustainability activities are overseen by the Risk Oversight and Compliance Council, the Corporate Executive Team and the Audit and Corporate Responsibility Committees of the Board of Directors. These committees regularly review EHSS performance, progress toward meeting EHSS targets and results of EHSS audits of GSK operations and suppliers. They consider issues such as sustainability that have social implications.

Home Responsibility Environmental sustainability Managing EHS and sustainabilityManagement of EHSS

Back to top�

Page 199 of 336




Corporate Responsibility Report 2008Environmental fundamentalsWe have been working to reduce the fundamental environmental impacts of our operations for many years.

This involves using treatment and disposal systems to control emissions and wastes from over 80 manufacturing facilities, more than 20 research laboratories, numerous offices and warehouses and a large fleet of vehicles.

Our fundamental emissions include:

Wastewater

General solid and hazardous waste

Ozone depleting substances released from our equipment and production processes and when patients use our inhaler products

Volatile organic compounds, primarily solvents

We aim to create a culture where fundamental environmental considerations are part of everyday business decisions. While we continue to manage fundamental emissions, we are now moving towards sustainability,changing our production and business processes to avoid waste at source rather than simply treating the waste and emissions that arise.

Home Responsibility Environmental sustainability ;� �+��-��*��-��

Back to top

Page 200 of 336




Corporate Responsibility Report 2008Wastewater

Most GSK sites discharge wastewater to municipal treatment facilities. Some large sites, especially the sites that manufacture active pharmaceutical ingredients (API), have their own on-site wastewater treatment systems. Some sites are permitted to discharge wastewater direct to the sea. We assess the quality of wastewater by measuring the chemical oxygen demand (COD) � the oxygen required to chemically oxidise compounds in the water. The lower the COD, the cleaner the water.

Our target from 2006 is to improve COD levels by three per cent a year per unit of sales which will give us a reduction of 12 per cent by the end of 2010. The vast majority of COD comes from manufacturing of API. Therefore wastewater from �domestic � activities such as washrooms and canteens is only included when it cannot be separated from manufacturing activities.

SGS verified

Home Responsibility Environmental sustainability Environmental fundamentals Wastewater


Back to top�

Page 201 of 336




Corporate Responsibility Report 2008Wastewater

Chemical oxygen demand of wastewater

Targets and performance normalised by sales are based on a constant exchange rate. Any errors found in data from prior years are corrected so data may vary slightly from earlier reports

In 2008 our chemical oxygen demand per million ��sales corrected to a constant exchange rate (CER) decreased 5.7 per cent from a 2006 baseline. Absolute chemical oxygen demand decreased 6.5 per cent from a 2006 baseline to 14.9 million kilograms. This decrease is in line with the target to decrease three per cent per year.

Explanation for trendThe quality of wastewater discharged is closely related to the types and amount of materials produced in themanufacture of our active pharmaceutical ingredient. Chemical oxygen demand of wastewater decreased significantly in 2007 with the decrease in production of antibiotic ingredients for that year. In 2008 production of these products increased so chemical oxygen demand increased, although it was still less than in 2006. The site that increased antibiotic production accounts for 21 per cent of the wastewater volume and 55 per cent of the wastewater COD.

We are concerned about the level of pollution in our wastewater because it can cause a burden to local municipal wastewater treatment facilities or to local receiving water bodies. The changes in levels of wastewater pollution from year to year are due to changes in production, waste minimisation and continuedimprovements in wastewater treatment. For example, we are evaluating wastewater treatment technologies at our pharmaceutical ingredient manufacturing plant in Singapore and we are planning a reverse osmosis system in our pharmaceutical ingredient manufacturing plant in India. In addition, our work to improve manufacturing efficiency should decrease wastewater pollution in the future.

We generated 10.8 million cubic metres of wastewater in 2008 as compared to 10.9 million cubic metres in 2007. The volume of wastewater in 2008 was 1.3 per cent lower than 2007 and 8.1 per cent lower than the 2006 baseline.

Home Responsibility Environmental sustainability Environmental fundamentals Wastewater


Page 202 of 336




SGS verified

�Back to top

Page 203 of 336




Corporate Responsibility Report 2008Hazardous and non-hazardous waste

Our production, research and sales activities all produce waste:

Production � hazardous wastes such as solvents and other chemicals

R&D and quality control laboratories � small amounts of chemicals including products and intermediates,as well as broken glassware and plastics

Offices � paper and other standard commercial waste

Building renovations produce non-routine waste such as obsolete equipment, office furniture and structuralmaterials

We classify waste as hazardous, non-hazardous, and non-routine (for waste such as construction and demolition rubble). A significant proportion of our waste is classified as hazardous because it contains solvents and chemicals used to manufacture active pharmaceutical ingredients. Other hazardous waste we produce includes lubricants, fluorescent lights and carcasses of animals used in research. Most non-hazardous waste is general material such as office waste paper, kitchen waste and non-hazardoussubstances used in manufacturing.

Our approachWe aim to eliminate waste where we can, reduce it if we cannot eliminate it, reuse materials if possible, recycle other waste and dispose of any remaining material sensitively. We separate hazardous wastes into different categories for efficient and appropriate treatment. Regulations vary widely around the world, but our first choice for solvents, which account for most of our hazardous waste, is to reuse or recycle them. Some used solvent is recovered and purified on site and reused in the original manufacturing process and some is sold to commercial reprocessing companies but is still included in our recycling statistics. When reuse or recycling is not possible, solvents are mostly incinerated and the energy recovered wherever possible.

We require disposal contractors to comply with our EHS requirements and local regulations. Sites audit their waste contractors or hire consultants to carry out the audits.

Our target is to reduce non-hazardous waste disposed per unit of sales by one per cent per annum which will give us a reduction of four per cent by the end of 2010. We have not set a target for reduction of hazardous waste but our target to improve material efficiency, the efficiency with which we convert raw materials to finished products, is designed to reduce hazardous waste.

The amount of non-hazardous waste disposed is affected by many factors. The amounts and types of products made in a year can affect not only the amount of waste but also the ability to recycle. In addition to production changes, some sites are actively and aggressively working to recycle as much waste as possible and decrease disposal of waste to minimum levels with focus on eliminating waste sent to landfill.

Disposal of hazardous waste is affected by the way solvents are managed and by the mix of products that are made in the year. Most hazardous waste comes from manufacture of active pharmaceutical ingredients, and this is where we concentrate our efforts. We do not collect hazardous waste data from consumer manufacturing plants, laboratories and offices. We estimate that these sites may generate an additional three per cent of hazardous waste to the amount we report.

Home Responsibility Environmental sustainability Environmental fundamentals Waste


Page 204 of 336




SGS verified

Building trust through environmental commitment

In 2008, our manufacturing site in Boronia, Australia, stepped up its environmental efforts. CEO Andrew Witty recognised the site�s achievements by awarding it first prize in the environment initiative category of his 2008 Environment, Health and Safety Excellence Awards.

Achievements include:

Establishing a �green team� of employee volunteers that has helped to increase involvement in sustainability activities. As a result the site has reduced water use by 20 per cent from 2007 levels, energy use by 5 per cent from 2007 levels and waste, with 34 tonnes diverted from landfill

A 96 per cent reduction in CO2 emissions from product transport, the result of switching from air freight to sea freight for imports of raw materials and exports of finished goods. This also saved the facility an estimated $A2.9 million (1.3 million GBP) in 2008 and we anticipate these savings will increase to over $A4 million (1.8 million GBP) annually from 2009 onwards

Introduction of waste-saving measures to the cold chain distribution system, including reusable cool boxes, data loggers and ice bricks. The new cold chain system manages temperature better, even in extreme conditions. This has prevented 12,000 polystyrene cool boxes and temperature alert tags, and50,000 disposable ice bricks from being sent to landfill. It also saves our customers the trouble of waste disposal � all they have to do is repack the equipment and we collect it from them

This project won first place in the 2008 CEO �s EHS Excellence Awards, Initiative-Environment category.

�Back to top

�

Page 205 of 336




Corporate Responsibility Report 2008Hazardous and non-hazardous waste

Non-hazardous waste

Non-hazardous waste disposed

Targets and performance normalised by sales are based on a constant exchange rate.Any errors found in data from prior years are corrected so data may vary slightly from earlier reports

Destination of non-hazardous waste 2008

Targets and performance normalised by sales are based on a constant exchange rate.

In 2008 the amount of non-hazardous waste disposed per million ��sales corrected to a constant exchange rate (CER) decreased 8.5 per cent from a 2006 baseline. Absolute non-hazardous waste decreased 9.2 per cent from a 2006 baseline to 32.9 million kilograms. This is significantly better than the one per cent per year improvement target.

Explanation for trendIn 2008 the decrease in non-hazardous waste disposed is at least partially due to continuing efforts to

Home Responsibility Environmental sustainability Environmental fundamentals Waste


Page 206 of 336




manage and recycle waste especially in the pharmaceutical and consumer manufacturing operations. It is also due in part to decreased production of some products. This is partially balanced by increasing waste in the vaccines business as it continues to grow.

Our target is specific to non-hazardous waste disposed but we also measure total non-hazardous waste generated which includes both non-hazardous waste disposed and non-hazardous waste recycled. In 2008, we generated 109.4 million kilograms of non-hazardous waste, compared to 120.3 million kilograms in 2007 and 114.7 million kilograms in 2006. Of this, 70 per cent was recycled and 30 per cent was disposed of via landfill or incineration.

We reduced disposal of non-hazardous waste at our pharmaceutical manufacturing sites by 22.1 per cent and by 17.9 per cent at our pharmaceutical R&D sites from 2006. However there was a 72.9 per cent increase in non-hazardous waste disposal in our vaccines business due to continuing expansion. This resulted in the overall 9.2 per cent decrease in the amount of non-hazardous waste disposed in GSKcompared to the 2006 baseline.

We have met our non-hazardous waste improvement target. However, to ensure that we maintain this improvement during times of production increases we will review improvement projects to make sure we continue to reduce the amount of waste we dispose. We are particularly committed to reducing the amount of waste sent to landfill because we want to minimise this burden on the environment and society as landfill space becomes harder to find and the cost of sending waste to landfill increases.

These data do not include non-routine waste such as construction and demolition rubble and similar material not related to day-to-day operations.

We continue to look for ways to reduce waste and have undertaken waste management reviews at many sites. Recycling non-hazardous waste such as paper, cardboard, glass, plastic or aluminium usually means sending it for reprocessing so it can be reused to make new products. In addition to these waste reduction measures, the reductions are likely to be due to decreases in the volume of production of certain pharmaceutical and consumer healthcare products.

As examples of projects that have reduced non-hazardous waste disposal, two sites in India have stopped putting the coal ash they generate into landfill; instead they sell it as raw material for the production of construction material. In addition, three nutritional drink manufacturing sites send some of their process wastes, such as barley husk, for use in animal food while others recycle canteen waste or effluent treatment plant sludge by converting it into bio-compost.

SGS verified

Hazardous waste

Hazardous waste disposed

Page 207 of 336




Targets and performance normalised by sales are based on a constant exchange rate.Any errors found in data from prior years are corrected so data may vary slightly from earlier reports

Destination of hazardous waste 2008

Any errors found in data from prior years are corrected so data may vary slightly from earlier reports

In 2008 the amount of hazardous waste disposed per million ��sales corrected to a constant exchange rate (CER) decreased 22.1 per cent from a 2006 baseline. Absolute hazardous waste decreased 22.7 per cent from a 2006 baseline to 54.4 million kilograms.

Explanation for trendThe decrease in hazardous waste disposed from 2006 to 2008 was due to continued efforts to manage and recycle hazardous waste, especially solvents. It is also due in part to decreased production of some products that used significant quantities of solvent and to outsourcing some production.

The amount of hazardous waste disposed is related to the types and quantities of products made and the amount of solvent used by our factories that manufacture active pharmaceutical ingredients. Solvent waste is 92.4 per cent of hazardous waste generated and 98.6 per cent of hazardous waste recycled. The four largest sites that manufacture active pharmaceutical ingredients together account for over 74 per cent of the solvent waste disposed.

We did not set a target for reducing hazardous waste disposed. Instead we focused our attention on improving manufacturing efficiency because efficiency improvements will mean less material used in the manufacturing process and therefore less waste. However, efficiency improvements will take some time to achieve. In the meantime, because it is important to minimise hazardous waste, we monitor this and improve the way we handle it, for example by recycling solvents.

Page 208 of 336




SGS verified

Back to top�

Page 209 of 336




Corporate Responsibility Report 2008Contaminated land Handling practices for some chemicals, used by industries in the past and now no longer followed, caused contamination to land and groundwater.

Land can also become contaminated due to accidental release of materials.

We are involved in a number of projects in the UK and the US to remediate sites with contaminated land.

We have identified five sites in the UK that require some remediation and more than 50 sites in the US. We work with governments and other parties to effect any necessary remediation. Costs of remediation are shared between the parties involved.

The five UK sites are undergoing remediation and two are being partially or fully decommissioned. GSK and its heritage companies have spent more than �100 million cleaning up more than 50 sites in the US over the last 20 years. We are continuing to clean up 25 of these sites. Most of them are waste disposal sites where GSK is one of several responsible parties. These figures are not included in the data verification.

Explanation for trendWhen the heritage companies that formed GSK were confronted with a number of contaminated land sites we undertook actions to avoid similar problems occurring in the future. The first action was to audit commercial hazardous waste treatment and disposal sites for their level of performance and financial solvency to avoid inappropriate disposal. The second action was to minimise solvent use wherever possible as we did by changing from solvent coating to aqueous coating of tablets. The third action was to initiate a project to improve material efficiency and to minimise or eliminate hazardous (persistent, bioaccumulative and toxic) compounds.

We have also reviewed production operations to determine if past practices have contaminated soil or ground water. Where problems were discovered we initiated site remediation.

Home Responsibility Environmental sustainability Environmental fundamentalsContaminated land

Back to top�

Page 210 of 336




Corporate Responsibility Report 2008Emissions to air

Ozone depletionThe ozone layer in the upper atmosphere is essential to human survival because it filters out harmful ultra-violet rays from the sun. It has been damaged by ozone depleting substances (ODSs), mainly chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs) and halons.

The loss of ozone in the upper atmosphere means that more ultraviolet-B radiation reaches the earth �ssurface. This can affect health, for example by causing skin cancer, skin ageing, eye disorders and suppression of the immune system.

Industrial use of ODSs was common before their negative effects were realised. In the past, we used CFCs as the propellant gas in most of our metered dose inhalers (MDIs). These deliver a precise dose of medication to treat asthma sufferers and people with chronic obstructive pulmonary disease. The gas is released when patients use the inhalers and a small amount escapes during production.

The Montreal Protocol bans the production of CFCs, but it exempts a number of �essential uses � whichinclude MDIs. However, in support of its principles we plan to eliminate the use of CFCs from our products by the end of 2010. Less than two per cent of our inhalers now contain CFCs.

We have stopped using CFCs as propellants in inhalers made in the US and the European Union. We offer a selection of alternatives in most other countries and will eliminate all CFCs from our products worldwide by the end of 2010.

The main alternative propellant used is HFA 134a, a hydrofluoroalkane. This does not affect the ozone layer but does have global warming potential, although significantly lower than CFC, contributing to climatechange. We have also invested heavily in dry powder delivery systems that do not use propellants such as CFCs or HFA 134a. These are not suitable for all patients, particularly children and the elderly, as they do not contain propellants and rely on a person �s lung power for the active ingredients to be administered.

Equipment and productionWe also use ODSs in some cooling systems and for other ancillary uses at GSK facilities. These are contained inside the systems and are only released in the event of a leak or during maintenance. We have switched to using hydrofluorocarbons (HFCs), ammonia and hydrocarbons. Ammonia does not contribute to either ozone depletion or climate change and hydrocarbons have a small climate change impact.

We aim to eliminate CFCs and HCFCs from cooling systems. This is the only way to completely eliminate emissions from equipment. We are focusing on removing larger pieces of equipment from service before the end of 2010.

We do not intend to replace equipment containing less than one kilogram of CFCs or HCFCs prior to their planned replacement. This type of equipment tends to be hermetically sealed and is less likely to leak.

Volatile organic compounds Volatile organic compounds (VOCs) react with nitrogen oxides in the presence of sunlight, creating ozone in the lower atmosphere. This results in smog which is a factor in human respiratory illness. Workplace exposure to certain VOCs can also pose a health risk.

Home Responsibility Environmental sustainability Environmental fundamentals Emissions to air


Page 211 of 336




We emit VOCs to the atmosphere mainly from solvents used in our primary manufacturing operations and R&D pilot plants. Solvents are also used to coat some tablets and in cleaning for sterile operations. We use small quantities of solvents in laboratories but do not measure emissions from this use. Our target is to reduce volatile organic compound emissions to air by two per cent per year per unit of sales which will give us a reduction of 8 per cent by the end of 2010.

SGS verified

Page 212 of 336




Corporate Responsibility Report 2008Emissions to air

Ozone depletion

Ozone depletion potential (CFC-11 equivalents)

Targets and performance normalised by sales are based on a constant exchange rateAny errors found in data from prior years are corrected so data may vary slightly from earlier reportsCFC-11 has an ozone depletion potential of 1In 2008 we reviewed the refrigeration equipment inventories for 2006, 2007 and 2008. Where inventories were incomplete they were estimated based on inventories in other years. We also updated the factors for ozone depletion potential and climate change emissions using WMO (World Meteorological Organisation), Scientific Assessment of Ozone Depletion: 2006, Global Ozone Research and Monitoring ProjectCReportNo. 50, 572 pp., Geneva, Switzerland, 2007. (chapter 8).

In 2008, estimated ozone depletion potential (ODP) from equipment and production losses per million ��sales corrected to a constant exchange rate (CER) decreased 82.3 per cent from a 2006 baseline. Absolute ODP from equipment and production losses decreased 82.4 per cent to 5.8 thousand kilograms. This indicates significant progress towards our target to eliminate losses of CFCs and HCFCs from production and equipment.

Explanation for trendIn 2008, 5.4 thousand kilograms of ozone depleting substance were released during production of inhalers and we estimate that less than one thousand kilograms of CFC-11 equivalent were emitted from equipment.

In 2008, 87.7 thousand kilograms of CFC propellant were released when patients used our products. Ozone depletion potential from patient use of metered dose inhalers was 51.9 per cent lower than in 2006. As production of CFC-containing MDIs decreases, the amount of CFC lost during production also declines

We maintain a register of the significant pieces of equipment that contain refrigerants and use this register to track progress towards the target to eliminate CFCs and HCFCs from refrigeration equipment. We have 162 pieces of equipment containing CFCs, amounting to 10,238 kilograms in total. Over 6,774 items of

Home Responsibility Environmental sustainability Environmental fundamentals Emissions to air


Page 213 of 336




p q p g g gequipment contain other ODSs, with an ODP of 16,468 kilograms of CFC-11 equivalent. We estimate (using an estimation factor of 2.75 per cent from the British Refrigeration Association) that 468 kilograms CFC-11equivalent were released from equipment in 2008. We are making progress towards our target and expect that we will achieve it.

SGS verified

Volatile organic compounds

Volatile organic compound emissions

Targets and performance normalised by sales are based on a constant exchange rateAny errors found in data from prior years are corrected so data may vary slightly from earlier reports

In 2008 the amount of volatile organic compound released to air per million ��sales corrected to a constant exchange rate (CER) decreased 9.7 per cent from a 2006 baseline. Absolute volatile organic compound emissions decreased 10.4 per cent from a 2006 baseline to 3.9 million kilograms. This is better than our two per cent per year target.

Explanation for trendEmissions of VOC to air are affected by the management of solvents and by the mix of products that are made in the year. In 2008 we decreased production of several products that used significant quantities of solvent and we outsourced several steps of one product.

It is important to reduce emissions of VOC because it benefits the environment, society and GSK. We want to reduce these emissions even in high production years so we continue to identify projects to reduce emissions. In 2008 one site installed a carbon absorption unit to reduce emission of solvents and two more sites have emission reduction projects planned for 2009. We anticipate achieving our target.

Our plansOur material efficiency projects are expected to reduce the amount of solvent used and we should see the effects of this work in reduced solvent emissions in the future. In the meantime we continue to look for ways to reduce solvent use and increase recycling to achieve our target of a two per cent annual reduction in emissions resulting in eight per cent improvement by the end of 2010. Two of our sites that manufacture active pharmaceutical ingredients have projects planned for 2009 to control emissions.

SGS verified

Page 214 of 336




Page 215 of 336




Corporate Responsibility Report 2008EHSS in business processesHere we describe how we are embedding environment, health, safety and sustainability (EHSS) principles into our business processes.

New product development and supply Our EHSS Milestone Aligned Process helps scientists identify and address environment, health, safety and sustainability issues during new product development and supply activities. It ensures that:

Scientists understand environment, health, safety and sustainability impacts and how they should be managed throughout a product �s life-cycle

New products and processes are developed that do not harm people, property or the environment

Opportunities are identified, such as process efficiencies and elimination of waste that reduce environment, health, safety and sustainability impacts and improve product development and supply

Acquisitions and divestituresOur due diligence process for acquiring and divesting businesses ensures that environment, health, safety and sustainability issues are considered in contract negotiations and that adequate management systems are in place. We work with acquired companies to develop action plans to align their EHSS practices with GSK ��

Emergency response and crisis managementThe discovery, development and manufacture of pharmaceutical and consumer products involve the use of hazardous materials and processes. All sites incorporate emergency response and crisis managementprogrammes into their management plans. These programmes ensure that accidents are effectively managed when they occur and that any impact on our business, the local community and the environment are minimised. Each site conducts an annual review of its internal emergency response programmes and technical capabilities and develops action plans to address any areas needing improvement.

ProcurementOur procurement activities support our environment, health, safety and sustainability (EHSS) goals in the following areas:

Sourcing renewable and recycled materials where appropriateChoosing safe and energy-efficient equipmentManaging EHSS risks in our supply chain

Our capital project technical review process ensures that we consider environment, health, safety, security and loss prevention in the design of new facilities and processes. By identifying EHSS issues early in a project, we can engineer facilities and processes that are efficient and safe for workers and the environment while still being cost effective.

Read more about EHS and procurement.

Home Responsibility Environmental sustainability Environmental fundamentalsEHSS in business processes

Back to top

Page 216 of 336




Corporate Responsibility Report 2008Supplier performanceWe want to understand the total environmental footprint of the processes used to make our products.

This means measuring the impacts of our suppliers of active pharmaceutical ingredients and packagedproducts, as well as those from our own operations. Some of our improvements in hazardous waste and air emissions were due to outsourcing of some production processes. Until we can collect data from our suppliers we will not know the full impact of production of our products. In the future we hope to report on the combined environmental impacts of manufacturing at GSK facilities and at our contract manufacturers.

GSK selects suppliers with an appropriate level of EHS management systems control. However, over the past few years it has proved difficult to obtain environment, health and safety performance data from these suppliers just for the products that they manufacture for GSK. In 2007 we surveyed 52 suppliers and received a response from 21 (40 per cent). They indicated that they preferred providing data after the firstquarter of the year to give them time to review it. With this input from our suppliers we changed our process. For energy data we will join the Carbon Disclosure Project (CDP) supplier initiative and request energy and climate change data from our large suppliers through the CDP. We will collect 2008 water, waste and injuryand illness data from suppliers during the second quarter of 2009 using our electronic system. We published the 2007 data in our 2007 corporate responsibility report and will publish 2008 data in the 2009 report.

Read more about GSK �s supply chain.

Home Responsibility Environmental sustainability Environmental fundamentalsSupplier performance

Back to top�

Page 217 of 336




Corporate Responsibility Report 2008SustainabilityTraditional environmental programmes focus on managing wastes after they are generated by business processes.

Sustainable practices change the business processes themselves to consume less natural resource, switch to renewable materials, protect biodiversity, generate less waste, eliminate waste that is persistent, toxic or bioaccumulative and lower costs. This approach benefits the environment, society, GSK and future generations.

Our high priority sustainability issues are:

Manufacturing efficiency � reducing the amount of raw materials needed to produce a finished product

Climate change � reducing the climate impacts of our buildings, equipment, transport and products

Water � reducing the amount of water we use

Product stewardship � reducing the use of materials of concern and the environmental impacts of our products after use by the patient

Packaging � reducing the amount of packaging we use and using recyclable and recycled materials

Home Responsibility Environmental sustainability Sustainability

Back to top

Page 218 of 336




Corporate Responsibility Report 2008Materials efficiency

We aim to increase the efficiency with which we convert raw materials to finished products. Known as materials efficiency, this helps reduce the resources we use, the waste we generate and the cost of production.

Pharmaceutical processes are often complex, usually requiring large amounts of solvents and other raw materials. Typically, the industry uses more than 100 tonnes of material for every tonne of active pharmaceutical ingredient (API) produced. We have set a target to double the average materials efficiency of manufacturing processes for new products introduced between 2006 and 2010.

Process designProcess design is essential to minimising environmental impacts. It determines which chemicals and processes are used in manufacturing as well as the impacts from production waste. The EHS team works with process development teams to incorporate EHS considerations into process design and materials sourcing, and to identify potential EHS risks in manufacturing.

New manufacturing technique cuts energy and waste

Our R&D facility in North Carolina has developed a novel way to manufacture a diabetes drug, currently in phase ll clinical trials, cutting environmental impacts and costs. This replaces a production method that was too resource-intensive to use on a large scale.

The chemical development department found a way to synthesise the molecule more efficiently and then produce it at a yield 37 per cent greater than before. The new process uses fewer raw materials, less than half the energy and 81 per cent less solvent. It also produces around 30 per cent less wastewater.

The new process will save over �110 million each year in raw material and waste disposal costs.

This project won first place in the 2008 CEO �s EHS Excellence Awards, Green Chemistry and Technology category

Home Responsibility Environmental sustainability Sustainability Materials efficiency


Back to top�

Page 219 of 336




Corporate Responsibility Report 2008Materials efficiency

Mass productivity

The chart shows how we improve materials efficiency as compounds move through development stages. In the early stages almost all compounds are less that one per cent materials efficient. By the last stage most achieve more than two per cent and some are above three per cent, with one process achieving productivity of 4.9 per cent.

Explanation for trendImproving manufacturing efficiency is one of the most important ways we can address sustainability and meet some of our fundamental environmental targets such as reducing our disposal of waste and emissions to air. This will not be easy because the chemical processes that make our medicines can be complex. In spite of the difficulties, we remain committed to improving efficiency for new products. In 2009 we will review the production processes that are transferred to manufacturing to determine if additional improvements are possible so that we can achieve our target.

�

Home Responsibility Environmental sustainability Sustainability Materials efficiency


Back to top

Page 220 of 336




Corporate Responsibility Report 2008Climate change and energy

It is widely acknowledged that human activity, primarily burning fossil fuels to produce energy, is contributing to climate change.

The Intergovernmental Panel on Climate Change (IPCC), the world�s leading climate authority, has stated that urgent action is needed to avoid the effects of dangerous climate change, including more frequent extreme weather events such as droughts, floods and hurricanes.

We want to be part of the solution to climate change and are committed to reducing our impact. As well as benefiting the environment, taking action on climate change helps us cut costs, improves our reputation with stakeholders and helps us prepare for future legislation on emissions.

Read about our energy and climate change position

Our climate change programmeIn 2007, following the fourth assessment report of the Intergovernmental Panel on Climate Change, we launched a new climate change programme and committed to new targets.

This includes a commitment to reducing our climate change impact (CO2 equivalent emissions) and energy use in operations and transport from 2006 levels by 20 per cent per unit of sales (based on a constant exchange rate) by 2010 and by 45 per cent by 2015.

This replaced our 2006 target to reduce energy use by one per cent per year, normalised by sales.

We will achieve our new targets by:

Making our buildings and equipment more energy efficient

Installing onsite renewable technologies such as wind turbines and photovoltaic panels

Buying electricity produced from renewable sources

Reducing the climate impact of travel and transport by switching from air to sea freight and by transporting more per load to reduce the number of journeys needed

The Corporate Executive Team has approved a central fund to help finance these energy saving projects. The Climate Change and Energy Reduction team consulted with GSK businesses to identify potential energy saving projects. In 2008, 171 projects were completed which are expected to result in a saving of more than 153,000 Kwh (550,800 GJ) of energy per year and more than 40 thousand tonnes of climate change emissions.

Product climate impact

We are also researching ways to minimise the amount of greenhouse gases released when our propellant inhaler products are used by patients for asthma and chronic obstructive pulmonary disease. These account for two-thirds of our climate impact. Propellant inhalers contain either hydrofluoroalkanes (HFAs) or chlorofluorocarbons (CFCs) which ensure a consistent dose but HFAs are 1,400 times more damaging to the climate than CO2 and some CFCs are more than 10,000 times more damaging to the climate than CO2. CFCs also deplete the ozone layer.

Home Responsibility Environmental sustainability Sustainability Climate change and energy


Page 221 of 336




SGS assurance logo

Back to top

Page 222 of 336




Corporate Responsibility Report 2008Climate change and energy

GSK�s carbon footprint

Other includes climate change impact from greenhouse gases released from cooling systems, during the production of inhaler products, from wastewater treatment and other processes.Any errors found in data from prior years are corrected so data may vary slightly from earlier reports

Climate change impact from operations energy and transport

Targets and performance normalised by sales are based on a constant exchange rate

Home Responsibility Environmental sustainability Sustainability Climate change and energyPerformance and plans


Page 223 of 336




Any errors found in data from prior years are corrected so data may vary slightly from earlier reportsWe use the Greenhouse Gas Protocol for all of our calculations of CO2 emissions from energy use. We also updated the factors for climate change emissions from propellants and refrigerants using WMO (World Meteorological Organisation), Scientific Assessment of Ozone Depletion: 2006, Global Ozone Research and Monitoring ProjectCReport No. 50, 572 pp., Geneva, Switzerland, 2007. (chapter 8)

In 2008, our carbon footprint was equivalent to 7.0 million tonnes of CO2 compared to 7.3 million tonnes in 2006. The majority of our emissions come from the use of inhalers by patients with respiratory disease. Adecrease in the use of CFC inhalers with a simultaneous increase in the use of HFA inhalers meant that our climate change emissions from patient use of inhalers did not change significantly from 2006 to 2008, remaining at 4.7 million metric tonnes of CO2.

If we exclude the use of inhalers, our carbon footprint reduced from 2.6 million tonnes of CO2 in 2006 to 2.4 million tonnes in 2008, reflecting emissions of greenhouse gas from inhaler manufacturing which decreased from 0.5 million tonnes in 2006 to 0.3 million tonnes in 2008.

Explanation for trendWe recognise that our products have more of a climate change impact than our energy consumption so our R&D scientists are working to develop alternatives to HFA as a propellant for all candidate inhaled products.

Emissions from operations energy and transportOur CO2 emissions from operations energy and transport per million ��sales corrected to a constantexchange rate increased 1.6 per cent from a 2006 baseline. Absolute climate change emissions increased less than 1 per cent from a 2006 baseline to 2.1 million tonnes. This was due to increased energy use in the growing vaccines business which overshadowed the energy savings in our pharmaceutical and consumermanufacturing operations, and to an increase in the use of coal in India.

Our energy use from operations and transport on which these CO2 emissions are based, decreased lessthan one per cent from 2006 to 2008 to 24.3 million gigajoules.

SGS verified

Energy performance

Energy consumption (facilities and processes)


Page 224 of 336




Seventy-nine per cent of our energy use is attributed to energy for operations (facilities and processes). In 2008 our energy use per million ��sales corrected to a constant exchange rate (CER) increased less than one per cent from a 2006 baseline. Absolute energy use decreased less than one per cent from a 2006baseline to 19.2 million gigajoules. This is equivalent to the energy used by over 200,000 UK households.

Explanation for trendWe set aggressive targets to reduce energy use and related climate change emissions and are moving towards these although progress is slower than expected. If we continue on the present course we expect to achieve an improvement of eight per cent per unit sales by 2010. We have taken steps to accelerate the implementation of energy reduction projects such as diverting more engineering resources to support them. We also expect projects initiated in 2008 will begin to deliver energy and carbon savings in 2009 that will then be sustained. In addition, business changes such as site closures resulting in more efficient use of existing facilities may help us achieve the target. We therefore remain committed to the 2015 target of a 45 per cent improvement.

Energy use decreased more than four per cent in the pharmaceutical and consumer manufacturing organisation and the pharmaceutical R&D organisation. However it increased more than 30 per cent in the vaccines organisation due to continuing growth with additional and enlarged buildings and new products. Our pharmaceutical and consumer manufacturing, our vaccines manufacturing and research group and our pharmaceuticals R&D group accounted for 54 per cent, 15 per cent, and 25 per cent of energy use respectively.

Between 2001 and 2006 our energy efficiency programme achieved incremental gains in energy efficiency by focusing on operational changes. These included optimisation of equipment use, resetting thermostats and changing to energy efficient lighting. Since 2006, some parts of our business continued to make incremental gains in energy efficiency but growth in our vaccines business and the associated increases in energy usepartially offset these efficiency gains.

In mid-2007 we revised our climate change programme to include more challenging targets covering energy for operations (facilities and processes) and transport of products and employees. A fund was set up to encourage energy projects. More than 400 potential projects were identified for support from this fund in 2007and in 2008 171 projects were completed with more than �15 million spent. These projects are expected to save 153 million kilowatt hours of energy and 40 thousand metric tonnes of climate change emissions. The majority of projects were completed towards the end of 2008 so the full benefit of these projects will not be realised until 2009. We are currently working on a further 157 projects and a significant proportion of these will be completed during 2009. Around 75 projects that were identified for support in 2007 and 2008 were abandoned following more detailed investigations to determine their business benefit.

Our plansIn 2008 GSK identified more than 600 potential projects for support from our climate change fund and ourpharmaceutical and consumer healthcare manufacturing business has created a Centre of Excellence to support the implementation of these projects during 2009. In particular, emphasis will be given to implementing combined heat and power (CHP) projects.

CHP is the simultaneous generation of usable heat and power, usually electricity, in a single process. Typically CHP uses a gas turbine, an engine or a steam turbine to drive an alternator to produce electricity. The heat produced is recovered, usually in a heat recovery boiler, to provide steam, hot water or even cooling with the right equipment. Because CHP systems use the heat produced during the electricity generation process, they can achieve overall efficiencies in excess of 70 per cent at the point of use. Conventional power plants have efficiencies of less than 50 per cent because the excess heat which they generate isnormally wasted and additional losses occur during transmission and distribution.

Another key area of focus will be to identify energy saving opportunities associated with heating, ventilation and cooling (HVAC). This equipment is needed to maintain the correct environmental conditions within our production areas so we can manufacture our products. However, it is responsible for more than 50 per cent of the operational energy that we consume.

Energy reduction has also been identified as a key objective for this business and in 2009 the remuneration of senior managers will be linked to the achievement of energy reduction targets. Energy consumption has also been identified as a key business metric that will be tracked throughout 2009 by the Corporate Executive Team.

Page 225 of 336




Using canal water for sustainable cooling

In December 2008, GSK unveiled an energy-saving scheme in partnership with British Waterways, the organisation in charge of the UK �s canal network. Under the initiative, GSK House in Brentford will use water from a nearby canal, rather than more energy-intensive air conditioning, to cool its computer data centres.

This will reduce carbon dioxide emissions by around 920 tonnes per year. It will also lower energy bills by �100,000 annually, recovering the costs of the project within five years.

Back to top

Page 226 of 336




Corporate Responsibility Report 2008Climate change emissions since 1990For GSK, climate change emissions from inhaler products are significantly greater than the climate change emissions from operational energy and transport. Our climate change emissions increased 86 per cent from 1990 to 1998 as sales of inhalers with chlorofluorocarbon (CFC) propellants increased. Phase out of CFC propellants began as a result of the Montreal Protocol which aimed to eliminate ozone depleting compounds (CFCs have an impact on both ozone depletion and climate change). As these were replaced with inhalers using hydrofluoroalkane (HFA) propellants or with dry powder inhalers that do not use propellants, climate change emissions improved dramatically because HFAs have much lower climate change impact than CFCs. Currently with 98 per cent of inhalers either using HFA propellants or being dry power propellant-freeinhalers, climate change emissions are 64 per cent lower than 1990 levels. These emissions are expected to grow in the coming years as sales of inhalers with HFA propellants continue to grow.

The emissions from inhalers and energy back to 1990 were estimated based on energy and CFC data in public reports back to 1993 for heritage SmithKline Beecham and to 1996 for heritage GlaxoWellcome.Where actual data for inhalers and energy were not available, sales data were used with factors applied to estimate climate change emissions. Climate change emission factors for CFC and HFC have been revised over the years and we used the current factors from the World Meteorological Organisation published in 2007.

Global warming potential from energy, transport and inhaler use

http://www.epa.gov/ozone/science/ods/classone.htmlWMO (World Meteorological Organisation), Scientific Assessment of Ozone Depletion: 2006, Global Ozone Research and Monitoring ProjectCReport No. 50, 572 pp., Geneva, Switzerland, 2007. (chapter 8)

Explanation for trendWhen the Montreal protocol called for the elimination of CFCs because of their effect on the ozone layer we invested over �1 billion to develop alternatives including devices that use HFA as a replacement propellant.HFA has no ozone depleting potential and it has a lower effect on climate change than CFC. Therefore, as CFC propellants were phased out and HFA phased in, there was a significant decline in the climate change impact from products. We estimated our climate change emissions back to 1990, and calculated an improvement of over 60 per cent by 2008. This compares to the 12.5 per cent reduction that the Kyoto protocol requires for the UK from 1990 to 2012. The Kyoto protocol does not include climate change emissions for CFC but it does include HFA.

Home Responsibility Environmental sustainability Sustainability Climate change and energyClimate change emissions since 1990

Back to top

Page 227 of 336





Emissions tradingA number of our UK sites participate in the UK government �s voluntary Climate Change Agreement programme which provides companies with energy tax rebates if they meet agreed energy-efficiency targets. In 2008 GSK reported its compliance with these agreements and all participating GSK sites were found to comply with their Climate Change Agreements.

Several GSK sites participated in the European Union Emissions Trading Scheme (EU ETS). Collectively these sites emitted below their specified CO2 allowances, generating a surplus of carbon credits. Proceeds from the sale of carbon credits are invested in energy-saving projects.

Home Responsibility Environmental sustainability Sustainability Climate change and energyEmissions trading

Back to top

Page 228 of 336




Corporate Responsibility Report 2008Transport impactIn 2008, we estimate that transport of our products and employees accounted for 361 million kilograms of CO2, compared to 363 million kilograms in 2007. This was equivalent to about 17 per cent of our climate change impact from energy.

Our travel-related CO2 emissions consisted of:

Business air travel (34 per cent)

Global sales fleet (32 per cent)

Transport of products from manufacturing plants to distributors (34 per cent), most of which was by air freight (82 per cent).

Our options for reducing the impact of transporting products include:

Consolidating freight shipments

Reducing the number of shipping points

Making more use of round tripping (managing inbound freight trucks so they do not return empty)

Switching from air to sea transport where possible

Travelling to workWe have �green travel plans � at a number of sites to encourage employees to reduce the environmental impact of their travel to work. For example, at GSK House in Brentford, UK, reserved parking spaces are given to car-sharers and drivers of fuel-efficient cars. We provide changing rooms and showers for cyclists, as well as discounts for bicycle equipment and repairs. At our Philadelphia office the cost of public transportation is subsidised.

Home Responsibility Environmental sustainability Sustainability Climate change and energyTransport impact

Back to top�

Page 229 of 336




Corporate Responsibility Report 2008Water use

Clean water is a valuable resource that needs to be conserved and protected from pollution. We aim to minimise the amount of water we use and the environmental impact of the water that we discharge.

GSK uses water in manufacturing (for processes, products, cooling and cleaning) and for general site uses, including drinking, food services and sanitation. Sites that manufacture active pharmaceutical ingredients use large amounts of water, while R&D sites and offices use less.

Our water standard requires sites to minimise water use, reuse water whenever feasible and ensure that all wastewater is treated and discharged in a way that minimises adverse environmental impacts. Our target is to reduce water consumption by two per cent per annum per unit of sales which will give us an eight per cent water saving by the end of 2010.

SGS verified

Home Responsibility Environmental sustainability Sustainability Water use


Back to top�

Page 230 of 336




Corporate Responsibility Report 2008Water use

Water consumption


In 2008 the amount of water used per million ��sales corrected to a constant exchange rate (CER) decreased 10.6 per cent from a 2006 baseline. Absolute water use decreased 11.4 per cent from a 2006 baseline to 19.7 million cubic metres. This is significantly better than the two per cent per year target.

Explanation for trendMost of this reduction was achieved through maintenance at facilities and process changes. Smaller improvements were achieved through ongoing conservation measures, particularly at water-stressedlocations. For example, our pharmaceutical manufacturing plant in Boronia, Australia, located in a water -stressed area, has an ongoing campaign to save water. Since 2001 they have reduced water usage by 33 per cent while increasing production by 22 per cent and staff by 30 per cent, saving an average of 29 million litres of water a year. These water savings are accomplished by recovering wastewater and using it in cooling towers, amenities and maintenance, by capturing storm water and by communicating with employees about saving water. We believe we will achieve our target.

Our plansGSK has endorsed the UN Global Compact �s CEO Water Mandate.

The UN estimates that more than 1 billion people do not have access to clean water and 2.6 billion people lack the basic sanitation necessary for health and well-being. Water stress is expected to worsen in many parts of the world as a result of factors including urbanization and population growth, increasing food production, changing consumption patterns, industrialization, water pollution, and climate change.

We joined the mandate because we recognise that water is an important and valuable resource that needs to be managed responsibly and we are committed to taking action by developing a comprehensive approach in the six areas identified in the mandate: Direct Operations; Supply Chain and Watershed Management;

Home Responsibility Environmental sustainability Sustainability Water use


Page 231 of 336




Collective Action; Public Policy; Community Engagement; and Transparency.

In many of these areas we have already taken some action. For example we have targets for water conservation and we reported water usage from our own operations. We have plans in place to collect and report water usage from a sample of key suppliers. We work with local communities to conserve water and preserve wetlands and we educate our employees in water conservation. We understand the connection between water and public health and have a philanthropic project known as PHASE to educate people in developing countries about the importance of hand washing. To meet the requirements of the Mandate we will build on these and other existing efforts and manage them under a single programme. During 2009 a Team with representatives from across the business will be formed to determine key priorities and objectives.

SGS verified

Back to top�

Page 232 of 336





Product stewardshipWe take the environment into account across the entire lifecycle of our products.

This begins with process design and continues through manufacturing to use by patients and eventualdisposal. Some of our wastes such as used solvents can be reused as a raw material for another industry such as paint stripping (cradle to cradle).

In this section we focus on several aspects of product stewardship:

Pharmaceuticals in the environment

Some portion of active pharmaceutical ingredients, the substances that make medicines work, may eventually be excreted by humans and enter the environment. We conduct tests and risk assessments to evaluate the potential effects of our pharmaceutical products on the environment.

Materials of concern

Materials of concern are chemicals where scientific evidence shows probable serious long-term effects to humans or the environment and for which there is existing or potential future legislation that may restrict use. Our process development teams develop strategies to eliminate or substitute the use of these materials.

Genetically modified organisms

We use genetically modified organisms (GMOs) in the research and development of new therapeutic agents and in the manufacture of certain medical products such as vaccines. All our work with GMOs is controlled to the strictest national and international regulations, and we apply best practice across all our facilities.

REACH

In 2008, we continued to work to reduce risks to continuity of supply of chemicals presented by the introduction of the EU�s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) legislation.

Global harmonisation

We continue to prepare for impending changes to classification and labelling of hazards as part of the UN �sGlobally Harmonised System for Classification and Labelling of Chemicals regulation.

Home Responsibility Environmental sustainability Sustainability Product stewardship

Page 233 of 336




Corporate Responsibility Report 2008Pharmaceuticals in the environmentSome portion of active pharmaceutical ingredients (APIs), the substances that make medicines work, may eventually be excreted by humans and enter the environment. Wastewater treatment removes most pharmaceutical residues but small concentrations do end up in rivers or in the sea and very low concentrations of some pharmaceuticals are occasionally found in drinking water. In countries where wastewater is not treated, higher concentrations may enter the environment.

We conduct tests and risk assessments to evaluate the potential effects of our pharmaceutical products on the environment. To date these indicate that our products do not appear to pose a risk for humans or the environment based on current risk assessment methodologies and information.

We conduct retrospective analysis of environmental data to refine our testing methodology and assessment models. We recently revised our material testing strategies to include chronic testing (to determine the impact of our products on the environment over the long term) and mode of action analysis (to identify the most sensitive species), to meet new regulatory guidelines and to improve our understanding of possible environmental effects.

We are committed to transparency about the data we collect and make environmental data publicly available.Assessments and environmental data for individual APIs are provided online in Safety Data Sheets. Data are also available on the Swedish Doctors Prescribing Guide (see below).

We make information about pharmaceuticals in the environment available to the public by publishing the results of our risk assessments in scientific journals. Read our public position statement about pharmaceuticals in the environment.

In the EU and US, environmental risk assessments are part of the approval process for producing and marketing new medicines. They allow regulatory agencies to assess the potential for environmental impacts of drugs pending approval. We work with regulatory agencies to ensure that the potential environmental impacts of our pharmaceuticals are understood and minimised.

We continue to monitor the latest scientific studies and findings to improve our risk assessment methodology. In addition, we conduct and contribute to environmental research in this area. We recently completed a study and submitted a scientific paper assessing the potential impacts on human health from environmental exposures for around 35 APIs included in GSK pharmaceuticals. We are also beginning to study the possible impacts of mixtures of various compounds in household wastewater at extremely low concentrations, which include our pharmaceuticals as well as other pharmaceuticals and household products.

Although the main source of pharmaceuticals in the environment is patients excreting medicines they have taken, GSK has established limits for active pharmaceutical ingredients in wastewater from our manufacturing sites. Based on our studies, we establish safe levels for API, based on a demonstration of no risk. We assess process waste concentrations against these established levels and treat the wastewater if required to ensure that the safe levels are achieved so that there is no subsequent environmental risk.

Industry collaborationWe work with other pharmaceutical companies, universities and research groups on activities around pharmaceuticals in the environment. We also collaborate on joint projects with industry groups and sponsor academic studies. For example, we submit environmental data on our products as part of the Swedish classification system for pharmaceuticals, a collaboration between the Swedish Pharmaceutical Association and the Swedish government. This is a voluntary transparency initiative making information about

Home Responsibility Environmental sustainability Sustainability Product stewardshipPharmaceuticals in the environment

Page 234 of 336




environmental risks available to the public, doctors and scientists.

We participate in technical working groups on pharmaceuticals in the environment sponsored by the industry group Pharmaceutical Research and Manufacturers of America (PhRMA). Through PhRMA and the Association of the British Pharmaceutical Industry, we continually engage with regulatory scientists from the US Environmental Protection Agency, the US Food and Drug Administration and the UK Environment Agency.

Back to top�

Page 235 of 336




Corporate Responsibility Report 2008Materials of concern, GMOs and nanomaterialsMaterials of concernMaterials of concern are chemicals where scientific evidence shows probable serious long-term effects to humans or the environment and for which there is existing or potential future legislation that may restrict use. These compounds include so called PBTs (substances that persist in the environment, bioaccumulate in animals and plants or are toxic to life), carcinogens, mutagens, reproductive toxins, substances known to cause asthma, endocrine disrupting chemicals and ozone depleting substances.

Our EHS team works with our process development teams to help them develop strategies to eliminate or substitute the use of thesematerials.

Read our position paper on hazardous chemicals management.

PerformanceIn 2008, we used 56 metric tonnes of materials of concern, 95 per cent of which was accounted for by five solvents. Most of the solvent waste from this production was destroyed by incineration, although some of it was recycled as part of the work in our pilot plants. We also examined the use of materials of concern across all phases of development. This determined which substances are being used and identified how they can be replaced during development.

Genetically modified organismsWe use genetically modified organisms (GMOs) in the research and development of new therapeutic agents and in the manufacture of certain medical products such as vaccines.

We use GMOs to identify the genetic targets and causes of disease and to develop new antibiotics and drugs for conditions such as heart disease, diabetes and depression. We use a number of different GMOs, predominantly harmless organisms such as disabled strains of the bacterium E.coli and eukaryotic cells in culture. We also manufacture a number of products that are derived from genetically modified materials, such as hepatitis B vaccine.

We do not produce or plan to produce any products that are, or contain, viable organisms.

All our work with GMOs is controlled to the strictest national and international regulations, and we apply best practice across all our facilities. Any work with GMOs is subject to full risk assessment, ensuring safe use, storage and disposal. All processes are performed in closed vessels minimising the risk of release. The large-scale fermentation or propagation of GMOs is always undertaken in fully contained systems. Research is performed in containment laboratories appropriate to the risk of the materials handled. Work is controlled by written procedures, and we carry out regular maintenance checks.

We treat all waste from our GMO operations to ensure we do not release viable GMOs from our contained processes into the environment. All GMOs are deactivated prior to disposal by chemical or heat treatment.

We do not routinely undertake research and development involving the cultivation of genetically modified plant species.

NanomaterialsNanotechnology is an area of science that involves controlling nanomaterial which are materials that are on an atomic or molecular scale. Nanotechnology may in future be used to develop new medicines.

Home Responsibility Environmental sustainability Sustainability Product stewardshipMaterials of concern, GMOs and nanomaterials

Page 236 of 336




We have participated in a Responsible Nano Code consultation for the development of a code of conduct for businesses that use nanotechnology. Responsible Nano Code is a collaboration between the Royal Society, Insight Investment and the Nanotechnology Industries Association.

We estimate that we will not begin using nanotechnology until around 2011.

Back to top�

Page 237 of 336





REACHIn 2008, we continued to work to reduce risks to continuity of supply of chemicals presented by the introduction of the EU �s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) legislation. This involved:

Using site inventories from EU and international sites to identify any chemicals sourced from EU suppliers or imported or manufactured by GSK

Contacting companies that supply GSK with chemicals covered by REACH to assess their plans for management of potential risks to continuity of supply to GSK. This involved the evaluation of over 1,000 suppliers

Pre-registering any phase-in material manufactured or imported by GSK in volumes of more than one tonne per year

Registering any new substances we manufacture or import in volumes of less than one tonne per year

Read about our position on REACH on gsk.com

Our plansFrom 2009 we will start to gather information about use of materials and EHS hazard data required to meet the first REACH registration milestone of November 2010 for phase-in substances. We will also continue to work with our suppliers to ensure that they meet their REACH obligations and will collaborate with other companies via Substance Information Exchange Forums (SIEF) to share any hazard data we have on substances of mutual interest that require REACH registration.

Home Responsibility Environmental sustainability Sustainability Product stewardship REACH

Back to top�

Page 238 of 336




Corporate Responsibility Report 2008Global harmonisationWe continue to prepare for impending changes to classification and labelling of hazards as part of the UN�sGlobally Harmonised System for Classification and Labelling of Chemicals (GHS) regulation.

This includes:

Changing the way we produce safety data sheets to ensure compliance

Initiating the process of reclassifying all substances we manufacture or import following GHS rules

Developing training for employees on new hazard warning symbols and labels introduced as part of GHS

Read our position paper on hazardous chemicals management.

Our plansDuring 2009 we will work with GSK operations to evaluate hazard labelling solutions that will facilitate production of GHS compliant labels based upon the revised classifications being developed.

Home Responsibility Environmental sustainability Sustainability Product stewardshipGlobal harmonisation

Back to top�

Page 239 of 336




Corporate Responsibility Report 2008PackagingWe are working to reduce the environmental impact of packaging for our pharmaceutical and consumer healthcare products.

Our �green packaging guide � provides guidance for evaluating and selecting packaging. It allows designers and managers to benchmark new and existing packaging designs using five metrics:

Manufacturing impactsMass of the materialBiodegradabilityPVC contentResource depletion of petrochemical feedstocks

One example of reducing the impact of our packaging is the use of 100 per cent recycled plastic for our Ribena bottles, achieved despite the challenge of sourcing sufficient quantities of recycled plastic.

Ribena packaging

Our Nutritionals business has embedded sustainability into every aspect of its business as evidenced by the work done on Ribena. We work on biodiversity with the farmers that grow our berries, we work towards a goal of �zero waste to landfill � from manufacturing Ribena and we use 100 per cent recycled materials for our bottles. From these actions we have realised the benefits of sustainability, benefits to the environment, our customers and our business. The work done on bottling is just one example of our approach.

We produce hundreds of millions of bottles of Ribena and Lucozade a year. The bottles are made from a type of plastic known as PET. We estimate that packaging such as this can form as much as 60 per cent of our Nutritional Healthcare products � environmental impact.

In 2008 we launched the UK and Europe �s first 100 per cent recycled and recyclable drinks bottle, for our Ribena squash and ready-to-drink products. Previously we had packaged Ribena in a bottle made from 40 per cent recycled material.

In 2008 we filled over 125 million of the new bottles with Ribena. By using 100 per cent recycled material, we avoided the emission of 8,000 tonnes of CO2 and prevented a total of 3,500 tonnes of waste from being sent to landfill. The bottles can also be recycled by consumers after use. We are trying to understand what would make people recycle when they are away from home by trialling �reverse vending machines� at major shopping centres. People can put used drinks bottles into the machines, which crush and compact them ready for collection and recycling.

The new bottles contribute towards our targets for GSK Nutritional Healthcare products to use 25 per cent less packaging, and use packaging made from an average of 50 per cent recycled materials by 2010.

This project won The Vanguard Award in the 2008 CEO�s EHS Excellence Awards

Home Responsibility Environmental sustainability Sustainability Packaging

Back to top

Page 240 of 336




Corporate Responsibility Report 2008Open and transparent relationsWe aim to be transparent and open about the environmental impacts of our products and processes.

This helps us build trust with our stakeholders and provides assurance that we are managing environment,health, safety and sustainability (EHSS) risks.

We report our progress against our EHSS objectives in our annual corporate responsibility report and respond to specific requests for information throughout the year. �We also engage more formally with stakeholders to gather feedback on our approach and performance and to address their concerns.

�

�

�

�

�

�

�

Home Responsibility Environmental sustainability Open and transparent relations

Page 241 of 336




Corporate Responsibility Report 2008Stakeholder engagementWe engage with stakeholders at corporate and local level to inform our plans and approach to managing EHSS and to help identify emerging issues.

This includes ad hoc meetings and formalised feedback from our stakeholder panel in the UK (created in 2005) and an EHS stakeholder workshop held in the US for the first time in 2007.

In 2008 we expanded the role of the UK panel to provide input to the Sustainability Council. This Council is composed of senior GSK managers and was formed in 2008 to consider the sustainability issues that are important to GSK and recommend actions. This is a component of GSK �s larger effort to address public concerns about how we conduct our business.

We engage with regulators to help them develop controls that protect the environment while safeguarding the development and launch of new medicines.

Read more about how we engage with stakeholders and the feedback we receive.

See how we fare in benchmarks.

Home Responsibility Environmental sustainability Open and transparent relationsStakeholder engagement

Back to top�

Page 242 of 336




Corporate Responsibility Report 2008EHSS reportingOur primary objective in collecting EHSS performance data is to help our operations manage EHSS issues.

This is done through EHS Manager, a web-based information management system.

We focus our external reporting on the environmental issues that are most relevant to GSK and of most interest to our stakeholders.

Read about our overall approach to corporate responsibility reporting

Read about our approach to health and safety and our health and safety performance

Home Responsibility Environmental sustainability Open and transparent relationsEHSS reporting

Back to top��

�

�

�

�

�

�

Page 243 of 336




Corporate Responsibility Report 2008AssuranceSGS Assurance statement

SGS UNITED KINGDOM LTD�S REPORT ON ENVIRONMENT, HEALTH AND SAFETY DATA IN THE GLAXOSMITHKLINE CORPORATE RESPONSIBILITY REPORT FOR 2008

NATURE AND SCOPE OF THE ASSURANCESGS United Kingdom Ltd was commissioned by GlaxoSmithKline (GSK) to conduct an independent assurance of the Environmental, Health and Safety data in their Corporate Responsibility (CR) Report for 2008. The scope of the assurance, based on the SGS Sustainability Report Assurance methodology, included 2008 data contained in the following sections of this report:

The information in the GSK CR Report and its presentation are the responsibility of the directors and management of GSK. SGS United Kingdom Ltd has not been involved in the preparation of any of the material included in the CR Report. Our responsibility is to express an opinion on the data, graphs and statements within the scope of verification. Financial data drawn directly from independently audited financial accounts has not been checked back to source as part of this assurance process.

The SGS Group has developed a set of protocols for the Assurance of Sustainability Reports based on best practice guidance provided in the Global Reporting Initiative Sustainability Reporting Guidelines (2006) and the AA1000 Assurance Standard (2003). These protocols follow differing levels of Assurance depending the reporting history and capabilities of the Reporting Organisation.

This report has been assured for content veracity. The assurance comprised a combination of interviews with relevant employees; documentation and record review at nineteen GSK locations during and at the end of the reporting year as follows:

Interim site visits during October 2008 in France (Evreux, Notre Dame de Bondeville, Saint-Amand-Les-Eaux), India (Nabha), Italy (Verona - GMS and R&D), Nigeria (Agbara), UK (Slough, Stevenage R&D, Ware GMS, Worthing) and USA (Clifton, Memphis, Research Triangle Park R&D).

End of year site visits during January and February 2009 in India (Nashik, Thane), Ireland (Cork) and UK

Home Responsibility Environmental sustainability Open and transparent relations Assurance

Waste water Injury & illness rates

Waste Injury & illness causes

Emissions to air Fatalities and serious injuries

Climate change Ergonomics

Energy Driver safety

Transport impact Health and safety data table

Water use

Environment data table

Page 244 of 336




(Irvine, Ulverston and Corporate CSR function in London).

The sites selected included those submitting high proportions of key data and included all parts of the GSK business.

STATEMENT OF INDEPENDENCE AND COMPETENCEThe SGS Group of companies is the world leader in inspection, testing and verification, operating in more than 140 countries and providing services including management systems and service certification; quality, environmental, social and ethical auditing and training; environmental, social and sustainability report assurance.

SGS United Kingdom Ltd affirm our independence from GSK, being free from bias and conflicts of interest with the organisation, its subsidiaries and stakeholders. The assurance team was assembled based on their knowledge, experience and qualifications for this assignment, and comprised auditors and assurorsregistered with IRCA, IEMA and EMAS Verifiers.

ASSURANCE OPINIONOn the basis of the methodology described and the verification work performed, we are satisfied that the Environmental, Health and Safety data contained within the GSK Corporate Responsibility Report 2008 is reliable and provides a fair and balanced representation of GSK �s Environmental, Health and Safety activities in 2008. We believe that GSK has chosen an appropriate level of assurance for this stage in their reporting.

Key areas for improvement to data collection, submission and manipulation were identified during the assurance process and, as far as possible, were addressed to incorporate improvements into this report. These improvement opportunities are outlined below to enable further review to establish the need for system or process changes in future reporting cycles:

Some data points which are collated centrally at year end were not fully reviewed to identify anomalies leading to an inconsistent approach in estimating missing data.

Several data points have been calculated using new emissions factors and previous years � data is restated using the same calculation to allow year-on-year comparison. It is important to ensure that any restated information is fully explained and references to factors used remain current.

Some significant contributors to selected data points failed to submit required information.

Calculation methodology for ozone depleting substances from patient use of inhalers was updated for oneproduction site but not the remaining sites.

It was noted that reported data for previous years may change slightly due to obtaining additional data submissions or updating estimates after publication date.

Some anomalies were identified in data submitted when reviewing site level data and comparing 2008 with previous years � submissions. Some of these included examples where data had been entered twice following a change to the database.

Improvement opportunities identified from site visits were mainly site specific with the most common observations focussing around the following areas:

Manual transfer of data and the opportunity for mistakes and variations in roundings in transfer;

Utilising the benefits of improvement in regular review and internal checks of data accuracy and formalising secondary review of manual transfers, rather than end of year checks;

Extension of monthly reporting rather than quarterly or annual.

Improvements identified in previous reporting period have started to be implemented as follows:

Specific reports in EHS manager have begun to be implemented, such as the energy module, to reduce the need for additional data transfer from spreadsheets at site level. There may be additional opportunities to extend this to other areas such as waste data provided by key subcontractor.

During site visits conducted it was noted that the staff were well prepared and able to provide required

Page 245 of 336




evidence to the auditors in the majority of cases, particularly on sites which had undergone previous visits. In addition required changes were generally made promptly where possible.

Data from ancillary services or site activities has started to be included, with explanation provided in thecomments section of EHS Manager, however site visits identified that there remain some missing items.

Review of data submissions indicated an increase in monthly reporting rather then annual or quarterly allowing for more regular review and update of data entries and also indicating discrepancies more clearly.

The majority of site visits were conducted in the last quarter of 2008 which enabled issues of concern to beidentified and dealt with earlier in the assurance process.

Key areas for improvement in data verification process were identified as follows:

Sites selected for visits should be identified at the earliest opportunity in order to enable visits to becompleted alongside ISO14001/OHSAS18001 certification audits where possible.

Recommended that site visits are completed during the last quarter of 2009 to enable any follow-uprequired to be completed before end of year verification is performed.

Recommend selection of key indicators for full review of calculation methodologies across all major contributors, for example VOC and COD emissions and hazardous waste disposal for Primary sites.

Recommend site visits include detailed review of source evidence for ozone depleting substances from equipment.

Recommend sites selected for visits include:a sample of sites manufacturing inhalers in order to verify data back to source;

a sample of sites with significant contributions that failed to submit data; and

a sample of sites where significant changes have occurred which were reflected in data submitted.

Signed:For and on behalf of SGS United Kingdom Ltd

Pauline EarlManaging Director25 February 2008

WWW.SGS.COM

Back to top�

Page 246 of 336




Corporate Responsibility Report 2008GSK response to assuranceGSK response to SGS, March 2009

This is the third year that SGS has reviewed the data in the �Environment� and the injury and illness data in the �People � section of the Corporate Responsibility report. Verification is complex due to the large amount of data covered and every year the SGS auditors suggest improvements based on their findings. Their unbiased view of our data and processes has been very valuable and we have adopted their suggestions. As a result the quality of our systems and data has continued to improve over the years.

SGS selects sites for review based on the magnitude of the contribution of the sites to the overall GSK performance, the types of operations and the degree of difficulty the sites seem to have with reporting. We believe their site evaluations are valuable learning experiences for site personnel.

The data included in the corporate responsibility report can be used by the individual sites to monitor andimprove their environmental programmes and their health and safety programmes. Therefore, the SGS data verification not only assures the veracity of the data for the corporate responsibility report, it also improves the accuracy and therefore usefulness of data for the sites.

We still find challenges in collecting complete and accurate data in a timely fashion. We are committed to continuing to improve this record so that we reach our goal to be able to provide accurate data to the public on the website in real time.

Responses to specific key areas for improvement for this year:

Selecting sites so they can be reviewed as part of ISO certificationSites have already been selected for the 2009 review so they can be verifiedin combination with any ISO certifications that take place this year

Site visits to be completed during last quarter of 2009Sites will be notified of their selection for verification visits in the first quarter of 2009 so visits can take place in the last quarter or in conjunction with ISO certification visits earlier in the year

Selection of key indicators for full review of calculation methodologiesWe will work with our sites that manufacture active pharmaceutical ingredients and are the principal contributors to our VOC and COD emissions and hazardous waste to review their calculation methods over the course of 2009

Site visits to include detailed review of source evidence for ozone depleting substances from equipmentWe will prepare reports of the refrigeration equipment register and SGS will include this in their 2009 site reviews

Sites selected for visits to include manufacturers of inhalers, sites that failed to submit data and sites that had significant changes after data were submittedThe sites selected for review in 2009 fully represent these groups including some large sales groups that submitted incomplete or late data on injuries and illnesses, and sites from all businesses and regions that made significant data errors

We look forward to the improvements that attention to these areas will bring in 2009.

James Hagan

Home Responsibility Environmental sustainability Open and transparent relationsGSK response to assurance

Page 247 of 336




Vice President, Corporate Environment, Health, Safety and Sustainability

Back to top�

Page 248 of 336





Your inhaler products have a large environmental impact. What are you doing about this?We have been phasing out CFCs from our inhaler products for the last 15 years, replacing these gases with HFAs which have a lower climate change impact (16 per cent that of CFCs). Less than two per cent of our inhalers now contain CFCs and we have committed to a complete phase-out by 2010. As part of our new climate strategy, we are exploring ways to reduce the amount of HFAs released from our inhaler products and we are looking into alternative propellants.

We also offer dry powder inhalers for asthma sufferers which contain no greenhouse gases. These are not suitable for all patients, particularly children and the elderly, as they do not contain propellants and rely on a person �s lung power for the active ingredients to be administered.

How can the pharmaceutical manufacturing process be made more efficient?Making medicines is highly regulated and is complicated due to the number of process steps required. We know that there is more we need to do to improve efficiency and we have set a target to double the average materials efficiency of manufacturing processes for new products introduced between 2006 and 2010.

Are pharmaceutical residues present in drinking water and are they a risk to humans?Our studies have shown that GSK pharmaceutical products are either not present in watercourses, or are present at low concentrations. Our risk assessments demonstrate that these concentrations do not pose a risk to human health or the environment. But we are not complacent and we continually monitor the latest scientific studies and findings to improve our risk assessment methodology.

Home Responsibility Environmental sustainability Q&As

Back to top

Page 249 of 336




Corporate Responsibility Report 2008Environmental metrics

Home Responsibility Environmental sustainability Environmental metrics

Metric 2001 2005 2006 2007 2008

Energy use

Energy for operations (million gigajoules) 20.7 19.4 19.3 19.3 19.2

Natural gas 9.87 8.78 9.09 9.04 9.15

Fuels 1.40 1.50 1.08 1.06 0.83

Coal 1.04 0.63 0.47 0.51 0.59

Steam imported 0.28 0.21 0.23 0.22 0.19

Electricity imported 8.10 8.30 8.39 8.45 8.43

Energy for transport1 (million gigajoules) 5.2 5.2 5.1

Sales force 2.1 1.9 1.7

Air travel 1.6 1.6 1.7

Product logistics 1.4 1.7 1.7

Electricity from sustainable sources 0.39 0.14 0.23 0.32 0.26

Climate change impact (CO2 equivalents)2

Total climate change impact (million kilograms CO2 equivalent) 3,704.5 2,637.2 7,254.3 7,633.5 7,030.8

CO2 equivalents from operations energy (million kilograms)

1,798.5 1,717.5 1,704.0 1,701.7 1,722.3

Natural gas 504.0 448.7 464.5 462.6 467.3

Fuels 86.9 98.7 74.5 72.9 59.7

Coal 93.5 56.8 42.6 45.4 53.2

Steam imported 39.1 16.3 15.8 16.3 12.7

Page 250 of 336




Electricity imported 1,074.9 1,096.9 1,106.7 1,104.5 1,129.6

CO2 equivalents from transport (million kilograms)

123.0 233.0 363.2 363.0 360.8

Sales force 33.0 102.0 145.4 129.0 114.8

Air travel 71.0 112.0 115.8 112.2 123.5

Product logistics 19.0 19.0 102.0 121.7 122.5

CO2 equivalents from other production activities (million kilograms)

1,783.1 686.7 502.3 369.0 282.2

Inhaler production losses 1,578.8 543.4 398.1 289.1 198.6

Equipment containing greater than 1kg refrigerant3

116.9 46.8 12.8 13.6 12.8

CO2, methane and nitrous oxide from production, waste treatment and other sources

87.4 96.5 91.4 66.2 70.8

CO2 equivalents from use of inhalers by

patients4 (million kilograms)4,685 5,200 4,666

CFC-11 inhalers 242 181 116

CFC-12 inhalers 1,083 1,071 688

HFA-134a inhalers 3,360 3,948 3,861

Water use and discharge

Water (million cubic metres) 26.8 21.8 22.3 20.9 19.7

Municipal 15.20 12.82 12.94 12.23 11.62

Wells or boreholes 11.56 8.59 8.95 9.27 7.78

Other water5 0.04 0.35 0.37 0.35 0.34

Wastewater volume6 (million cubic metres) 20.7 16.6 11.7 10.9 10.8

Wastewater to recycling 1.29 1.04 0.73 0.58 0.52

Wastewater to municipal sewer 9.90 8.12 5.67 5.35 5.44

Wastewater to water bodies 9.48 7.46 5.35 5.01 4.83

COD after on-site treatment6,7 (million kilograms)

27.3 18.7 15.9 14.3 14.9

Page 251 of 336




g )

COD in recycled water 0.06 0.06 0.01 <.01 0.01

COD to municipal sewer 6.04 4.87 4.08 4.05 3.80

COD to water bodies 21.17 13.81 11.83 10.20 11.08

Waste generated and disposed

Hazardous waste generated8 (million kilograms)

350.7 261.0 241.1 221.8 237.5

Hazardous waste recycled 288.41 193.62 170.73 149.86 183.11

Hazardous waste disposed 62.31 67.36 70.33 71.98 54.36

Hazardous waste incinerated with energy recovery9 28.69 29.90 30.38 32.72 20.20

Hazardous waste incinerated with no energy recovery 30.25 36.06 39.45 38.68 32.53

Hazardous waste to landfill 3.37 1.40 0.50 0.58 1.64

Non-hazardous waste generated (million kilograms) 132.8 124.0 114.7 120.3 109.4

Non-hazardous waste recycled 79.34 83.82 78.48 83.48 76.55

Non-hazardous waste disposed 53.49 40.20 36.22 36.85 32.87

Non-hazardous waste incinerated with energy recovery9 5.92 9.94 8.69 8.83 8.35

Non-hazardous waste incinerated with no energy recovery 12.05 6.53 4.93 4.87 4.85

Non-hazardous waste to landfill 35.52 23.73 22.60 23.15 19.67

Non-routine waste generated10 (million kilograms)

25.3 77.9 28.1 37.7 18.9

Non-routine waste recycled 2.29 39.97 11.10 23.04 11.97

Non-routine waste disposed 22.98 37.96 17.00 14.63 6.90

Non-routine waste incinerated with energy recovery 1.55 7.46 2.55 4.21 0.49

Non-routine waste incinerated with no energy recovery 0.24 0.39 0.79 0.82 1.13

Non-routine waste to landfill 21.19 30.12 13.65 9.60 5.29

Volatile organic compound emissions

Page 252 of 336




Volatile organic compound emissions11

(million kilograms)6.8 5.2 4.4 4.5 3.9

Top six solvents released to air (million kilograms)

Acetone 1.24 1.15 1.06 0.96 1.03

Dichloromethane 1.74 0.88 0.85 0.75 0.63

Methanol 0.75 0.71 0.46 0.64 0.54

Ethanol 0.36 0.54 0.46 0.57 0.37

Isopropanol 0.39 0.20 0.28 0.18 0.18

Toluene 0.42 0.06 0.09 0.26 0.06

Ozone depleting substances12

ODS releases from production (thousand kilograms) 183.5 51.0 32.9 14.9 5.4

CFC-11 releases from production 88.55 14.11 19.35 3.22 1.59

CFC-12 releases from production 94.90 36.86 13.51 11.63 3.82

Ozone depletion potential of refrigerants released from eqauipment (thousandkilograms CFC-11 equivalent)

4.3 3.0 0.7 0.6 0.5

CFC-11 releases from equipment 0.56 1.62 0.42 0.38 0.26

CFC-12 releases from equipment 0.33 0.21 0.02 0.02 0.03

Other ODS from equipment 3.42 1.15 0.22 0.16 0.19

ODS released from patient use of inhalers13 272.5 182.2 136.5 87.7

CFC-11 from patient use 76.15 50.91 38.14 24.49

CFC-12 from patient use 196.38 131.29 98.35 63.16

ODP of refrigerants contined in equipment14

(thousand kilograms CFC-11 equivalent)23.9 20.5 16.2

Estimated costs and investments

Operations and maintenance cost (million �) 41.6 39.3 33.9 33.1 31.3

Capital investment (million �) 24.4 12.1 9.7 16.8 12.9

Footnotes

Page 253 of 336




1. Energy and climate change impact for travel and transport by air, land and sea are calculated using the Greenhouse Gas Protocol starting from distance travelled, not directly from fuel use. In years before 2006 we did not collect all categories of freight transport or employee business travel. Some of the transport data are estimated and we may not capture all routes and employee air travel.

2. Climate change impact is calculated as CO2 equivalent using the Greenhouse Gas Protocol developed by the World Resources Institute and the World Business Council for Sustainable Development. Each year we review the CO2 factors and update the data for all years as appropriate. The greatest changes are generally in the updated factors for electricity.

3. In 2008 we reviewed the refrigeration equipment inventories for 2006, 2007 and 2008. Where inventories were incomplete they were estimated based on inventories in other years. We also updated the factors for ozone depletion potential and climate change emissions using WMO (World Meteorological Organisation), Scientific Assessment of Ozone Depletion: 2006, Global Ozone Research and Monitoring ProjectCReportNo. 50, 572 pp., Geneva, Switzerland, 2007. (chapter 8). We calculate the probable releases using a factor from the British Refrigeration Association.

4. We did not have enough information to calculate climate change impact from inhaler use before 2006.

5. Water from other sources includes recycled sources

6. We focus collection of wastewater and chemical oxygen demand data primarily on the major contributors; primary manufacturing operations, pilot plants, coating activities and sterile operations. Some sanitary wastewater streams are included if they cannot be separated from production wastewater streams or if they are significant.

7. Chemical oxygen demand (COD), a measure of water pollution, is measured when wastewater leaves our sites following any onsite treatment.

8. We consider a waste to be hazardous if it has any of the properties defined by the 1989 Basel Convention or if it is radioactive, bioengineered or biohazardous. Basel Convention properties include flammability, explosivity, water or air reactivity, corrosivity, oxidising potential, acute or chronic toxicity, ecotoxicity or infection. Biological waste rendered non-hazardous after treatment is considered non-hazardous waste. We focus collection of hazardous waste on the major contributors; primary manufacturing operations, pilot plants, coating activities and sterile operations.

9. Incineration with energy recovery means burning the material and using the resulting energy.

10. Non-routine waste includes construction and demolition rubble and is not included in hazardous or non-hazardous waste calculations.

11. We focus collection of volatile organic compound emissions on the major contributors; primary manufacturing operations, pilot plants, coating activities and sterile operations.

12. We used WMO (World Meteorological Organisation), Scientific Assessment of Ozone Depletion: 2006, Global Ozone Research and Monitoring ProjectCReport No. 50, 572 pp., Geneva, Switzerland, 2007.(chapter 8) for ozone depletion potential and climate change emissions factors.

13. Before 2006 we did not have information about inhalers produced in Asia so it was not included in ODP or GWP calculations until 2006.

14. Before 2006 we did not have information about the amounts of refrigerants contained in equipment

Back to top

Page 254 of 336




Corporate Responsibility Report 2008Our peopleGood employment practices are essential to achieve our business strategy. Our goal is to �be the best place for the best people to do their best work�.

We employ over 90,000 people in 114 countries across the world. The essential characteristics of a good workplace are integrity, diversity and inclusion, development and creativity.

Integrity is critical in everything we do. The GSK spirit defines the culture and behaviours we expect from our employees. Any failures of integrity risk damaging our long-term success.

Diversity and inclusion in our workforce demonstrate our commitment to equal opportunities, and enhance our business. Diversity and inclusion help us attract the best people in each of the countries in which we operate, give us a wide range of perspectives to draw on and enhance our understanding of local market needs.

Development of our employees means they are more likely to stay with GSK and contribute their best to our success. We encourage our employees to achieve their full potential through training programmes and on-the-job development. We offer a supportive and safe work environment and competitive reward packages.

Creativity is fostered in the best work environments. Our aim is that GSK workplaces empower our people to be creative and innovative in their work, for the benefit of the company, shareholders, customers and patients.

Employment awards

A selection of the employment awards won by GSK in 2008:

UK

Ranked fourth in the 2008 Britain�s Top Employers survey by CRF International and published by Guardian booksBest in class in Engineering and Science and shortlisted for best Graduate Employer in Target awards, voted for by graduates and post-graduatesReceived The Times Employers of Choice for Research and Development Award, based on results of undergraduate interviewsRanked 14th in The Times Top 100 Graduate Employers Survey, a list of organisations that new graduates most want to work forFirst in the Employee Benefits Award for the most effective use of employee financial education in the workplace, awarded by Employee Benefits magazineHighly commended in PricewaterhouseCoopers Building Public Trust Awards in �People reporting �category, based on disclosure and strength in human capital management and employee practices

US

Awarded a perfect score (100 per cent) for Corporate Equality by the Human Rights Campaign Foundation and listed as one of the best places to work for gay, lesbian, bisexual and transgender equalityNamed one of the 100 best companies by Working Mother magazine, for the 16th consecutive yearAwarded platinum honours for workplace and lifestyle programmes, by the National Business Group on

Home Responsibility Our people

Page 255 of 336




Health. Identified as a leader in providing a healthy workplace and promoting a healthy lifestyle for employees and their families

�

Page 256 of 336




Corporate Responsibility Report 2008Our culture and behavioursOur mission is to improve the quality of human life by enabling people to do more, feel better and live longer.

We place great emphasis not only on what we achieve, but also on how we deliver our achievements. Integrity is critical in everything that we do.

The GSK spirit defines the culture and behaviours we expect from all our employees:

Culture

Passionate people

Patient-focused

Performance with integrity

Behaviours

Innovative thinking

Engaging and developing others

Leading people

Achieving excellence

Our mission and spirit help our employees deal with new challenges and maintain a clear focus. We raise awareness of the GSK spirit and help employees to understand and adopt its principles through workshops, team meetings, presentations and awards.

We are working to individually empower each of our employees. Empowerment means trusting employees and recognising and rewarding them for achieving their objectives. It helps to encourage innovation and entrepreneurship, and is good for employee morale. Empowered employees take responsibility for their tasks, are able to prioritise better and make decisions more quickly and effectively. Achieving a culture of individual empowerment across GSK will motivate our staff, make us more effective and improve our ability to deal with challenges.

�

Home Responsibility Our people Our culture and behaviours

Page 257 of 336




Corporate Responsibility Report 2008RestructuringIn October 2007, we announced a three-year Operational Excellence programme to improve the effectiveness and productivity of our operations. We launched the programme as a response to a more challenging business environment and forecast that it would deliver annual pre-tax savings of up to �700million by 2010. In February 2009 we announced an expansion to this restructuring programme, to realise increased pre-tax annual savings of �1.7 billion by 2011. In 2009, savings from restructuring will mitigate the decline we expect to our gross margin due to product mix changes with a higher percentage of sales generated from vaccines, Consumer Healthcare and Emerging Markets, and support further investment behind our strategic priorities.

The programme includes initiatives to streamline manufacturing, adapt our selling model and improve efficiency in R&D. We are very conscious of the effect this programme will inevitably have on our employees and if options exist where we can achieve our financial goals and preserve jobs we will do everything we can to do so. We consult with employees and their representatives before we implement measures that affect them, such as outsourcing, site closures and staff reductions. We always speak to affected employees first (except where local regulations do not allow it) and then our works councils, trade unions and other employee representatives as appropriate.

We aim to treat our employees with dignity and respect and offer a wide range of support for all affected employees. This includes a competitive severance package and outplacement support such as assistance in finding alternative employment, career counselling and retraining. We also work hard to maintain the morale of all other employees at GSK.

�

Home Responsibility Our people Restructuring

Page 258 of 336




Corporate Responsibility Report 2008ConsultationIn Europe our staff or works councils and European Employee Consultation Forum meet regularly, providing an opportunity for employees and company management to discuss key issues and developments in the business.

We also recognise trade unions for consultation and collective bargaining in many countries worldwide.

Our European Employee Consultation Forum, which includes employee representatives from 28 EU countries, works alongside national consultation processes and is governed by UK law. There is an Operating Sub-Committee of six employee representatives who meet four times a year with six management representatives to receive updates and review proposals affecting the structure of the business. Extraordinary Operating Sub-Committee meetings can be called should the need arise. The whole of the Forum meets once a year at an Annual Meeting to receive a business update from senior GSK executives. In 2008, Eddie Gray, President of GSK Pharmaceuticals Europe, and other business leaders spoke about the opportunities presented by new products in the R&D pipeline, the challenge of growth within Europe and GSK �s vision for developing the Consumer Healthcare business.

We also discuss issues through national consultation forums. For example, the UK Information and Consultation (I&C) Forum which consists of 15 GSK elected employee representatives and seven managers and meets three times a year. In 2008, the I&C Forum reviewed and amended a number of GSK �s UK policies including those on driving while on company business, further education and special leave. The Forum also continued to review UK-wide redeployment and selection guidelines for redundancy and proposals to handle pension legislation changes taking effect in April 2010. In 2008, the Forum received presentations on strategy from senior managers within Global Manufacturing and Supply and R&D.

�

Home Responsibility Our people Consultation

Page 259 of 336




Corporate Responsibility Report 2008Communication

Good two-way communication with our employees is vital.

We aim to keep everyone well informed and involved in company activities, and provide opportunities to get their feedback.

Our internal communications channels include:

Face-to-face communications, for example through �town hall � style meetings, lunches with the Corporate Executive Team, conferences and team meetings

The GSK Experience programme for new starters. This is a mandatory, two-day induction programme that teaches new employees in the UK and US about GSK. Feedback indicates the programme helps them to feel valued and involved. Other countries arrange their own induction programmes locally

Spirit, our internal magazine. We print and distribute 33,500 copies throughout the company, four times a year. Spirit is also published on our intranet, myGSK, reaching a broader audience than print alone and allowing our employees to easily give us feedback on articles they have read

Our global intranet site, myGSK, provides updates on company and industry news, and a large range of information and resources for employees. myGSK has several features for employees including:

myCEO, a dedicated part of the intranet where staff can pose questions to our Chief Executive Officer (CEO) and the other members of the Corporate Executive Team. Employees ask approximately 70 questions each month and our CEO �s answers are posted regularly on the siteThe Ambassador intranet community which provides reference materials, information and tools for employees to use as a reference, including presentations, facts and figuresAn interactive intranet feature, Your Story, which allows our employees to share stories about what inspires them and how this impacts their work with the company

An email cascade system where messages are sent to business leaders to share with employees, for example details of our latest financial results

Surveys that enable us to monitor employee engagement and help us to track the impact of our internal communications

Home Responsibility Our people Communication


Page 260 of 336




Corporate Responsibility Report 2008Communication

Internal communicationsSome of the ways that we communicated with our employees in 2008:

CEO communications

As CEO designate, Andrew Witty held nine employee forums with 250 employees from across the world to help inform his strategic priorities for GSK

As CEO, Andrew Witty hosted three global employee broadcasts, recorded live in front of an employee audience. These broadcasts are available for employees to view throughout the year as video on demand via our online video library GSKtv

A CEO Advisory Board has also been established which will act as an informal sounding board for ideas. The Board will be filled by employees from across the company

Communicating with our senior leaders

We held meetings with senior leaders in April and September 2008 to support alignment of the different parts of our business with our new strategic priorities. These were attended by 1000 and 200 leaders respectively.

Online communications

In 2008 we launched several new features on the company intranet, myGSK, including:

A new myCEO discussion forum, called �Let �s talk �, designed to support the transition to a new CEO. This received 176 comments from employees between May and December 2008. Employees also sent 456 questions to the myCEO Q&A facility

The online version of our employee magazine, Spirit, in September 2008. We also redesigned the magazine and now print it on 100 per cent recycled, chlorine-free paper

GSKtv, an online multi-media library which allows employees to view and download a range of videos from across the organisation

A new internal website that provides employees with information about what to do in the event of a flu pandemic. Read more about GSK�s flu pandemic preparedness

Business communications

Our business units communicate directly with employees through the intranet, �town hall � meetings and other face-to-face meetings, broadcasts and video messages. Many members of the Corporate Executive Team also run live web chats and host Q&A sessions on their intranet communities, ensuring we are aware of areas of concern within regions, business units and functional areas.

Employee surveysBetween 2002 and 2006 we conducted Global Leadership Surveys every two years to track management views on a range of issues. The next survey will be run in 2009 and will measure managers� perceptions of our progress towards achieving our new strategic priorities which were introduced in 2008.

Home Responsibility Our people Communication


Page 261 of 336




Our plansWe are continually reviewing the effectiveness of our communications and how we can improve them. Employees are encouraged to ask questions and comment on the information we provide and the communication channels we use. As technology is updated, it is easier for us to encourage direct communication and discussion with employees.

In 2009 we will expand our use of technology, such as social media tools, to encourage greater collaboration and communication across GSK, breaking down traditional communication barriers.

Page 262 of 336




Corporate Responsibility Report 2008Diversity and inclusion

At GSK, we recognise the value that different perspectives and experiences bring to GSK and we aim to recruit a diverse range of employees to our global workforce.

We respect all our employees and include talented people in the workforce regardless of race, gender, sexuality, age, religion and belief or disability. We do not require medical testing as a prerequisite for employment.

We aim to adopt inclusive work practices that create an environment where employees feel individually and collectively empowered, and can develop and contribute to the business to their full potential.

Being a diverse and inclusive business helps GSK to recruit and retain the best people for the job. It also enables us to understand and meet the needs of diverse patients, customers and consumers.

Global diversity policyOur commitment is set out in our global diversity policy. Our Corporate Executive Team endorses the policy and related activities such as our annual Multicultural Marketing and Diversity Awards.

All our employees are expected to comply with this policy. Allegations of discrimination are taken extremely seriously, fully investigated and findings acted upon.

Each business has diversity champions, employees that promote diversity issues. In the UK and US we have Diversity & Inclusion (D&I) steering committees, made up of human resources managers and line managers with specific responsibility for diversity and inclusion. The committees run diversity awareness campaigns and training sessions. GSK also monitors and reports on gender diversity in management in the UK and US.

Employee networksEmployee networks are an important element of our diversity and inclusion programme. They support professional growth and provide a forum where people with similar interests or backgrounds can meet, discuss shared experiences and address any problem areas. This helps engage and empower employees.

The networks are an important source of expertise on diversity issues. GSK managers can engage with the networks to improve their understanding of employees from different backgrounds. Networks also help our media and marketing teams understand our diverse customers and stakeholders.

GSK has networks for Asian, African American, Hispanic, gay, lesbian, bisexual and transgender employees. We also have networks for mature employees, employees early in their career, women in leadership and veterans. Each network has an executive sponsor who helps to set and achieve goals, obtain resources and promote the network �s objectives among senior management.

DisabilityWe work to ensure people with disabilities can access the full range of recruitment and career opportunities at GSK. In the UK, we partner with the Employers� Forum on Disability and strive to be a �disability confident �organisation. Disability confidence is a concept developed by the Employers � Forum to describe companies that create a culture of inclusion, remove barriers to access and make adjustments to enable individuals with disabilities to contribute as employees, customers and partners. We hold the �Two Ticks � symbol from

Home Responsibility Our people Diversity and inclusion


Page 263 of 336




JobCentrePlus, which demonstrates GSK �s commitment to employing disabled people.

Read more information on our approach to diversity and inclusion.

Positively managing HIV in the workplace

We do not discriminate against prospective and current employees based on HIV status and do not require testing as a prerequisite for employment. We maintain medical confidentiality at all times. We provide information and training to staff on HIV/AIDS prevention and addressing problems of stigma relating to the disease. We provide HIV/AIDS testing, voluntary counselling and treatment programmes to employees and their families in countries where these are not easily available via government healthcare programmes.

We also offer preferentially priced anti-retrovirals or equivalent not-for-profit arrangements to other employers in Sub-Sahara Africa who have their own workplace clinics

Page 264 of 336




Corporate Responsibility Report 2008Diversity and inclusion

Gender diversityWe are pleased that the percentage of women in management has increased incrementally in the last five years. However, there is still a lot of room for improvement.

Gender diversity in management 2008

Gender equality in the workplace is affected by many factors, some external to GSK, including the requirements of family life. Our flexible working policies help employees balance the demands of work and home life. They can be particularly beneficial for caring and family responsibilities. For example, we offer part-time working, job sharing and remote working.

Read more about our programmes encouraging women in science: Women in Science Events and the Scientific Women�s Scholarship Programme.

Ethnic diversityIn the US, minorities (defined as Blacks, Hispanics, Asians, Pacific Islanders, American Indians and Alaskan natives) made up 20.5 per cent of our workforce in 2008, compared with 20.1 per cent in 2007, 19.8 per cent in 2006 and 19.6 per cent in 2005.

In the UK, ethnic minorities accounted for 19.2 per cent of employees, in 2008 compared with 19.1 per cent in 2007, 18.3 per cent in 2006 and 16.8 per cent in 2005. Ethnic minorities accounted for 12.5 per cent of the UK population of England and Wales in 2001, the last UK Census. We use the UK Commission for Racial Equality definition of ethnic minorities. This includes anyone who does not identify themselves as White British, so this means people identified as White Irish, North American and European are included as minorities.

We also measure diversity in the UK by counting the number of employees that define themselves as non-white. In 2008, 12.1 per cent of employees defined themselves as non-white, compared with 11.8 per cent in 2007, 11.6 per cent in 2006 and 11.0 per cent in 2005.

Ethnic minorities (US)

Home Responsibility Our people Diversity and inclusion


Per cent positions held by women (worldwide)

� 2004 2005 2006 2007 2008

Corporate Executive Team, senior vice presidents, vice presidents

19 21 22 22 25

Director grade 33 33 34 35 36

Manager grade 38 38 39 40 41

All management positions 35 35 36 37 38

Page 265 of 336




Ethnic minorities (UK)

Multicultural marketing and diversity awardsOur annual Multicultural Marketing and Diversity Awards aim to inspire employees to find creative ways to reach a broader range of potential employees, customers and communities. Awards are given in categories such as employee attraction, development or retention; multicultural marketing and sales; community outreach; and diversity ambassador.

The 2008 Awards recognised 13 project teams and five individuals. Award-winning projects included:

An initiative that, over four years, increased the representation of diverse subjects in US clinical trials from just under 20 per cent to 35 per cent, slightly higher than the overall US minority population

A literacy programme to teach 154 Indian manufacturing employees how to sign their names on official documents instead of using a thumb print

Read more in our case study on this literacy programme.

Our plansDuring 2009 we plan to simplify our approach to diversity and inclusion, ensuring that this maximises employee empowerment.

Page 266 of 336




Corporate Responsibility Report 2008Training and development

Training and development opportunities help employees feel valued and engaged in their work.

GSK provides work-related training courses for all employees, and leadership training for managers. These focus on providing people with the right behaviours and expertise for their jobs and the skills needed to apply their knowledge effectively.

Our goal is for each individual to achieve their potential and contribute fully to company performance. We conduct regular appraisals to identify training needs and help employees set and achieve development objectives. We operate 360- degree assessments for our top managers to ensure they receive objective feedback on their performance from the employees they manage and colleagues that they work with, as well as their manager.

Training is carried out within each business function and online, for example through our �myLearning �intranet site in the US and UK. We also offer project secondments to help employees learn new skills.

Leadership development We identify high-performing employees and potential leaders in each business function through our annual talent management cycle. Managers are accountable for developing talent and successors and this is a top priority for every leader. The process ensures we have the diverse and high-performing talent required to deliver our business strategy and to reflect the global growth of GSK.

Talented people participate in leadership programmes and connect with senior management through programmes such as the Chief Executive Forum. Our leadership framework helps employees fulfil their potential, become leaders in their field and contribute fully to our business performance. Specifically, it helps them to:

Develop the behaviours that distinguish high-performing leaders. These include innovative thinking, engaging and developing others, leading people and achieving excellence in their work

Understand their behaviour, take personal responsibility for their actions and continue to perform with integrity

Enhance their expertise, including technical and functional skills and broader knowledge. These contribute directly to GSK�s overall performance and are likely to be unique to the position, role or function of each employee

Effectively use and apply the processes and practices within GSK

We also provide extensive health, safety and environment training for our employees.

Home Responsibility Our people Training and development


Page 267 of 336




Corporate Responsibility Report 2008Training and development

The majority of our employees receive an annual performance appraisal through our Performance and Development Planning (PDP) programme. Compliance with this requirement is measured at local level, but we know that more than two-thirds of employees received an appraisal in 2008.

The PDP programme assesses how well employees have implemented GSK business principles through their work. The appraisals impact on bonus payments and future career development.

In 2008, we focused on embedding our leadership framework. This included the following training initiatives:

�Hot Topics � training which focused on how to lead in times of transformational change. Nearly 1,700 managers and senior leaders attended

Workshops to teach GSK leaders about the importance of coaching their staff and techniques for doing so effectively; 138 managers took part in the workshops in 2008

Online development resources available for all English-speaking employees, providing a variety of steps they can take to build leadership skills

We also offered over 3,000 learning programmes to all GSK employees via our online learning management system.

Our plans During 2009 our Leadership and Organisation Development function will work to support GSK �s strategic priorities. Plans include forecasting and delivering the capabilities needed for the future growth and success of GSK. In addition, leadership development will continue as an area of focus, including refining the behaviours necessary for successful leadership and supporting this with prescribed learning and development opportunities and experiences.

Home Responsibility Our people Training and development


Page 268 of 336




Corporate Responsibility Report 2008Reward and recognitionWe offer employees a competitive salary based on industry benchmarks, as well as performance-related incentives and other benefits. This helps us to attract and retain the best people.

We particularly reward employees for innovation and good performance and we reward leaders who empower their staff.

Our pay strategy for managers is based on a programme called TotalReward that helps us recognise good performance and enables managers to share in GSK �s success. We use feedback from managers to identify the types of reward that they prefer.

Components of TotalReward include:

Cash, including salary, bonuses and incentives (including long-term incentives for eligible employees), and recognition awards. Salaries are allocated within defined bands for different employment levels

Savings choices such as pension provision and share schemes

Lifestyle benefits, for example healthcare, childcare support and employee car ownership programmes

TotalReward applies to GSK managers around the world, although the component parts of an employee�spackage will differ by country in accordance with local legislation and best practice.

Share ownershipOur share ownership schemes help to create a culture of ownership among our employees. In countries where share ownership opportunities exist, they are open to all employees and there is a high level of participation. For example, in the UK 67 per cent of employees participate in our ShareSave scheme, and 85 per cent in our ShareReward scheme.

Home Responsibility Our people Reward and recognition

Page 269 of 336




Corporate Responsibility Report 2008Health, safety and wellbeingKeeping our employees and contractors healthy and safe is a priority.

Our rigorous management system reduces the risk of harm to our employees and helps them stay healthy. It is part of our broader environment, health, safety and sustainability (EHSS) programme. As well as being the right thing to do, this improves business performance by increasing attendance, improving productivity and reducing healthcare and insurance costs.

Home Responsibility Our people Health, safety and wellbeing

Page 270 of 336




Corporate Responsibility Report 2008Health and safety managementWe manage health and safety through an integrated environment, health, safety and sustainability (EHSS) management system.

This incorporates our EHS and sustainability vision and policy and associated standards. Our EHSS Plan for Excellence includes our strategy for improving EHSS performance up to 2015.

We employ health and safety professionals across sites within business units and at the global level to manage health and safety risks across GSK.

Read more about our EHSS management system.

Our occupational health and safety data is independently assured. Assurance does not include personal health and wellbeing programmes and data.

Audits and performanceAs part of our overall environment, health, safety and sustainability audit programme, we conduct occupational health and safety audits at our sites every one to four years. The frequency depends on current risks and past performance. We carry out more frequent visits at some sites, based on the degree of risk at the site, its health and safety performance and the issues raised by previous audits. Audit results arepresented to the Audit Committee of the Board of Directors.

Our occupational health and safety target [link to environmental sustainability/plan for excellence/targets] is to reduce reportable injuries and illnesses by five per cent a year from 2006 to 2010, and to be placed within the top quartile of comparable industry ratings by 2012.

We systematically assess and manage occupational health and safety risks and performance. When incidents do happen we identify root causes and take action to prevent reoccurrence. We believe that addressing the causes of incidents will help eliminate risks and hazards, and prevent future occupational injuries and illnesses.

In 2008 we audited 31 GSK sites for implementation of occupational health and safety standards as part of our overall environment, health, safety and sustainability audits. The average audit score was 78 per cent which compares to our 2010 target of 82 per cent.

Best performance was seen in fire prevention, site management commitment to occupational health and safety, investigation and reporting or injuries and illnesses and emergency planning and response. Sites were generally weakest in resilience and mental wellbeing, control of chemical agents, use of workequipment, risk assessment, permit to work systems, noise control and ergonomics.

Auditors found two �critical findings �, which indicate a high probability of incidents with potentially serious consequences. The first related to deficiencies in controlling the risk of falls during a construction project andthe second was related to the risk of fire from inadequate management of highly flammable liquids. These issues are monitored to ensure that appropriate actions have been taken to mitigate risks and ensure ongoing compliance.

In 2008 one of our active pharmaceutical ingredients manufacturing sites was fined �50,000 by the UK regulator, HSE, for a process safety incident that occurred in 2006. A serious explosion occurred at the Irvine, UK site, involving a �placebo� batch used to test plant conditions and controls. Two operators were injured. The event has been thoroughly investigated, learnings shared and improvements made. This was reported in our 2006 Corporate Responsibility report.

Home Responsibility Our people Health safety and wellbeing Health and safety management

Page 271 of 336




In 2008, a site in the US received a fine of $1,375 from the South Carolina state Occupational Safety and Health Administration (OSHA) for violations of forklift regulations. These concerns have been addressed at the site.

OHSAS 18001 certificationTwenty-six of our 78 Pharmaceuticals and Consumer Healthcare manufacturing sites and one Consumer Healthcare R&D site are certified to the international health and safety standard OHSAS 18001. We have set a goal for all manufacturing sites to be jointly certified to OHSAS 18001 and the environmental standard ISO 14001 by the end of 2010. In 2008, three new sites were certified. The certified sites are in Argentina, Australia, Brazil, China, Egypt, France, Germany, India, Japan, Kenya, Mexico, Panama, Philippines, Poland, Saudi Arabia, Spain, Turkey, the US and the UK.

�

Page 272 of 336




Corporate Responsibility Report 2008Hazard assessment and communicationAssessmentUnderstanding the intrinsic hazards of the materials we produce or use in research, development and manufacturing is an important first step to enable us to effectively manage health and safety risks and prevent damage to the environment.

Our occupational toxicologists and environmental scientists assess materials hazards throughout product development. Increasingly, we use computer-based modelling and in vitro methods instead of animal tests. We use hazard information to assign occupational and environmental exposure limits that help guide the design of systems used to protect our employees� health and to protect the environment from chemical contamination.

Our hazard assessments help us meet regulatory requirements such as the new EU Registration,Evaluation and Authorisation of Chemicals (REACH) legislation.

CommunicationWe provide hazard information to enable our employees, contract manufacturing partners and customers to handle and dispose of our materials and products safely.

We develop safety data sheets for new materials and products as they progress through the development process. This ensures that health and safety information is readily available to our staff before they handle chemicals and to our customers when the product is launched.

We distribute safety data sheets using a web-based system. It provides safety information for nearly 4,500 GSK materials and key manufacturing and process chemicals. It also includes over 2,200 safety data sheets for pharmaceutical, biological and consumer healthcare products. The information is regularly updated and is available in English, French, German, Italian, Portuguese and Spanish.

Safety data sheets for our products are available on our website and are also communicated directly to our customers via fax on demand, or through customer response centres.

Safe transport of materialsAs part of our normal business operations we transport materials that require special handling such as chemicals, biological and radioactive materials, and finished products. We have a network of highly trained employees to oversee transportation-related activities to ensure materials are transported in a safe and effective manner that complies with national and international laws and conventions. This ensures that our employees, the public and the environment are kept safe.

We use two systems that support tracking, classification and emergency information for the transportation of chemical, biological and radioactive materials. The HazClass4 system is available for use by R&D sites.Manufacturing sites use the SAP system to manage transport of their materials and products.

Understanding fire and explosion risksOur in-house fire and explosion laboratory conducts tests to determine fire and explosion properties of materials handled in research and development and manufacturing. This work is primarily driven by the requirements of the EU regulations on explosive atmospheres (Directive 99/92/EC, ATEX 137). Whenmanufacturing sites receive hazard data from laboratories, they undertake risk assessments to design work practices that eliminate or reduce the risk of fires and dust explosions.

Home Responsibility Our people Health safety and wellbeingHazard assessment and communication

Page 273 of 336




Page 274 of 336




Corporate Responsibility Report 2008Safety programmes We operate a number of programmes to keep our employees and contractors safe:

Chemical exposureWe have rigorous procedures and controls in place to ensure employees involved in developing and manufacturing our products are protected from exposure to chemicals.

We have a goal to make 80 per cent of operations involving the handling of hazardous compounds �respiratorfree � by 2010. This means employees will not need to wear respiratory protective equipment for routineproduction tasks. Instead, sites will install technology that prevents the release of hazardous compounds into the work environment. For example, we have installed contained powder transfer systems and glove-boxtechnology at our pilot plant facility in Cork, Ireland, and a special containment system at our new penicillin facility in Pakistan. We have also developed a proprietary manufacturing technology which greatly reduces operator exposure to medicines as they are manufactured.

Each GSK site monitors air quality to assess exposure to hazardous compounds and implements controls to protect employees and achieve our �respirator free � goal. Our occupational hygienists, employee health staff and engineers work together at site, regional and global levels to reduce employees � exposure to chemicals.

By the end of 2008 over 40 per cent of operations had achieved a �respirator free � level of engineering control based on at least some occupational hygiene monitoring results. We continue to upgrade engineering controls to achieve �respirator free � levels of control. For situations where engineering controls are not possible, employees will remain protected by appropriate respiratory and other protective equipment.

Process safetyMany of our products begin with the formulation and processing of hazardous materials such as flammable solvents and combustible powders. Our scientists look for opportunities to eliminate the use of these hazardous materials through our green chemistry and green technology programmes. Where substitution or elimination is not an option, our process safety programme aims to ensure that safety is built into manufacturing, research and development processes, and that employees receive training to understand risks and implement appropriate controls.

Our engineers use an online assessment system to develop safer processes and plant maintenance strategies and to share hazard information and control strategies across GSK.

We have reviewed and updated our process safety strategy after two employees were injured in an explosion at our factory in Irvine, UK, in 2006. Using the results of this review, we are continuing to update and integrate our process safety management system (PSMS) into our EHSS management systems at all GSK sites.This includes:

A design code containing new engineering standards for process safety

Assessments against the new engineering standards, with gap analyses

Upgraded risk assessments and remediation processes

Process safety indicators

Steps to embed process safety in the overall safety culture

Home Responsibility Our people Health safety and wellbeing Safety programmes

Page 275 of 336




New training and competence programmes and process safety tools

We also appointed a new director of process safety.

Safety engineering Our safety engineering programme focuses on improving construction and plant safety and ensuring effective emergency response systems. We have developed safety engineering guides to managing the risk of fire and explosion and to provide guidance on machine guarding and electrical hazards. These web-basedguides provide a standardised approach to managing safety risks across GSK.

We also ensure that safety is built into and maintained at our sites worldwide through the following programmes: Risk Assessment and Control Processes, Construction Contractor Safety Programme, Capital Project EHS Review Process and our Emergency Response Programmes.

ErgonomicsMusculoskeletal illnesses and repetitive strain injuries are some of the leading causes of time away from work. Our Corporate Executive Team has set a target to reduce the number of these illnesses and injuries by five per cent each year through to 2010.

Good workplace and job design, known as ergonomics, helps employees to do their jobs effectively while reducing the risk of musculoskeletal illnesses and injuries.

There are 70 ergonomic improvement teams working across GSK businesses to assess and manage the ergonomic risks of existing operations and planned projects. Teams include members from areas such as manufacturing quality, safety, health and medical services and those that perform the work itself. Teams work together to identify risks, develop solutions and share best practice globally through a dedicated ergonomics community on our intranet.

In addition, over 900 trained facilitators throughout the business help to manage computer-based ergonomic risk assessments for over 30,000 employees. These assessments identify steps to reduce discomfort andinjury relating to computer use. Information about ergonomics best practice is also available to employees on our intranet site.

These efforts have contributed to:

A 4.7 per cent improvement from 2006 to 2008 in ergonomics-related injury and illness. This is short of our target of an annual five percent improvement through to 2010, equivalent to a 10 per cent improvement over 2006 to 2008. In order to meet or exceed our target in 2009, we will increase our effort and resources in this area

Cost and productivity gains in manufacturing operations. For example, in 2008 at our Nabha site in India, a manual handling task was improved resulting in simplified work process, reduced risk of injury and reduction in the number of employees needed to perform the task from three people to one person. This allowed the two workers to focus on other tasks while reducing the risk of injury for all workers

Improved audit scores through implementation of ergonomic improvement processes. For example, Kuala Lumpur improved its �ergonomics management of risks � score from 43 per cent to 80 per cent as a result of implementing an ergonomics improvement process, and improved its overall audit score

Significant impacts on introduction of new ergonomics improvement teams. For example at our Tianjinfacility in China, six major ergonomic improvements initiated by the new team in their first months resulted in a 40 per cent reduction in reports of discomfort/injury and improved morale

The GSK ergonomic improvement teams were given special recognition in 2008 by the European Safety and Health Council as part of a Europe wide-focus on improving manual handling

Internal recognition of the global ergonomic community team and process as an example of new ways of working at GSK with shared global resources spanning functions, businesses and cultures. The team won an award in our 2008 �Cross sector multicultural marketing and diversity awards �

Page 276 of 336




Driver safetyOur sales representatives spend significant amounts of time driving and are therefore at risk of being involved in road traffic incidents. We aim to reduce this risk as much as possible through our worldwide driver safety programme.

This includes instructions and guidelines on driver training, vehicle selection, risk assessment and accident reporting. We have a motorbike rider safety manual for employees in countries where we provide motorbikes or scooters.

Around three-quarters of GSK �s commercial businesses have extensive driver safety programmes in place, including driving licence checks, guidance on the use of mobile phones, safety training and tracking andreporting incidents. We plan to extend these to our other sites.

The most common cause of fatalities and serious injuries remains driving accidents. In 2008, 15.9 per cent of the injuries with lost time were due to motor vehicle accidents, as were 19.7 per cent of the injuries without lost time.

In 2008, two road traffic accidents caused the death of two of our employees. See �Fatalities and serious injuries �.

Defibrillator programme

In 2007 and 2008 six people were resuscitated using automated external defibrillators (AEDs). An AED is a safe and easy to use portable medical device that analyses heart rhythm and delivers electric shocks to victims of ventricular fibrillation in order to restore the victim �s heart rhythm to normal.

We began expanding the number of sites with AEDs when they were used in saving several lives in the US and UK in 2005 and 2006. Key personnel are trained to use AEDs in emergency situations and the equipment is installed at an estimated 100 GSK sites in Belgium, Brazil, Canada, Egypt, France, Germany, India, Italy, Japan, Mexico, Puerto Rico, Singapore, South Africa, Spain and US.

We used a risk assessment to decide which sites should have AEDs, based on factors including heart disease risks among employees, hazards on site such as chemicals or energised circuits that could cause cardiac arrest, and ambulance response times.

Page 277 of 336




Corporate Responsibility Report 2008Health and wellbeing programmesGSK offers programmes to boost employee health and wellbeing and to create and sustain energy and engagement with their work. This in turn helps improve our business performance.

GSK helps improve employee wellbeing by offering flexible working options and health and wellbeing initiatives. These include health risk appraisals, screening for diabetes and hypertension, smoking control support, fitness and nutritional advice, and immunisations. Our prevention and screening initiatives focus on the leading causes of illness and disability among our employees which include depression, non-work-related injuries, heart disease, stroke and respiratory infections.

Increasingly we are also focusing on ways to encourage team and personal energy and resilience in times of high pressure.

Many of our employee health and wellbeing programmes have won national awards for excellence in 2008, such as the Platinum Awards from the National Business Group on Health (NBGH) in the US and the Health Promotion Board in Singapore for our team resilience programme. We received an award in 2008 from the NBGH for innovation and commitment to providing lifestyle improvement programmes designed to improve healthier lifestyles for our employees.

Energy and resilience We define resilience to describe the skills and traits necessary for success in a high-pressure working environment. These skills and behaviours also help prevent mental illness due to stress, a leading cause of ill health and disability at work.

Energy for Performance

When employees have energy they can focus better and perform their tasks more efficiently. The Energy for Performance (E4P) programme is designed to boost energy levels and help employees invest energy in the right way, at work and at home.

Uptake was good: 1,626 employees participated in E4P workshops in 2008. Over 3,000 employees from over 30 countries had attended E4P workshops by the end of 2008. Over 80 per cent have reported significant improvement in their physical and mental performance and emotional energy. Participants found that their performance improvements persisted for at least 12 months after the workshop.

Personal resilience

We run workshops for employees who want to enhance and build their personal resilience. Focusing on improving work and home life, the programme aims to help employees increase their focus, energy and confidence while also helping to reduce tension, anxiety and fatigue. Since the programme started in 2007 over 1,100 employees have participated in the programme

Team resilience

Healthy, collaborative and motivated teams are critical to business success. The Team Resilience programme helps employees and their managers to identify sources of pressure on their teams, such as process complexity or lack of workplace flexibility or accountability.

Teams then work together to agree action plans to address their concerns. The programme helps teams take more control of their work, and eliminate or manage the sources of pressure that can lead to ill health or

Home Responsibility Our people Health safety and wellbeingHealth and wellbeing programmes

Page 278 of 336




inefficiency.

Since the programme began in 2003 it has been completed by teams in 51 countries, comprising 26,500 employees by the end of 2008. Participants report an 80 per cent reduction in workplace pressures, 25 per cent drop in work-life conflict and a 21 per cent increase in satisfaction with GSK as an employer.

Wellbeing and work-life balanceGSK offers programmes to improve the health of employees and their families. We find this increases employee commitment and productivity and reduces absenteeism and the cost of ill health. Support varies between countries and according to local needs. Our sites use public health and GSK data to identify high-risk areas and investments that lead to significant health and cost improvements.

Programmes often include benefits such as on-site health and fitness centres, flexible working arrangements, immunisations, regular medical check-ups, assistance to stop smoking, disease screening and management, family support services and health education. We also assist employees suffering from chronic diseases to ensure they have access to the correct long-term treatment and support. Our programmes help local healthcare services by focusing on health education, prevention awareness and management of current conditions. We have created a network of GSK employee health professionals to share health and wellbeing best practice.

GSK also supports key public health efforts such as World AIDS Day, the World Health Organization �sHealth Day, Tobacco Free Day and Global Handwashing Day.

Back to top�

Page 279 of 336




Corporate Responsibility Report 2008Health and business continuityWe have developed contingency plans to protect our employees and business in the event of natural disasters, man-made emergencies or a flu pandemic.

These plans aim to ensure that our business can continue to function and we can continue to supply critical medicines to patients.

We have also developed and implemented programmes to protect more than 435,000 staff, their dependants and key complementary workers in over 130 countries in the event of a pandemic.

We offer employees annual seasonal flu vaccination in 95 per cent of our markets, as well as travel health programmes. We stockpile multiple antiviral medicines that can be used to prevent or treat pandemic flu. From 2009 this will include pre-pandemic vaccines, which can be administered before a pandemic has started, and a pandemic flu vaccine which will be available six months after the exact pandemic flu strain has been identified.

In the event of an outbreak we will implement special rules to prevent the disease spreading among our workforce. For example, non-essential services will close, face-to-face meetings will not be held and special cleaning and personal protective programmes will be implemented. We will restrict business travel and access to GSK sites and employees will be encouraged to work from home. We have developed a special website, accessible on our intranet and externally, that acts as a single source for all global and local flu information across GSK.

�

Home Responsibility Our people Health safety and wellbeing Health and business continuity

Page 280 of 336




Corporate Responsibility Report 2008Training and awareness Training helps to create a workplace culture where occupational health and safety is taken seriously. Employees who are responsible for managing occupational health and safety issues at sites and business units receive regular training and in turn instruct employees about safe working.

We give training on our environment, health, safety and sustainability (EHSS) standards, as well as programmes such as process safety, chemical exposure protection, identifying risk, auditing and ergonomics. Sites develop and conduct training based on local needs and capabilities. Some use ourinternal learning tools, commercially available training programmes or locally available government or university sponsored training programmes.

We have developed a training framework that identifies gaps in employees � knowledge of health and safety and provides in-house and external training courses. Our health and safety professionals share knowledge and best practice via teleconferences, intranet communities, training programmes and discussion forums.

We raise awareness about employee health and safety issues through:

Employee bulletinsAnnouncements on our myEHS Community intranet sitesThe CEO �s EHS Excellence awards programmeHealth and Safety Week, held in October to coincide with the European Health and Safety week. The event encourages employees to address potential risks at work and at home. Over 13,000 employees from 76 sites in 26 countries took part in the 2008 Health and Safety week activities.

Read more about training on environment, health and safety issues.

Health and safety: Worthing EHS challenge competition

In 2008, GSK �s penicillin manufacturing facility in Worthing, UK, ran four competitions to improve employees� knowledge of EHS issues.

Each month, the EHS team sent five questions to all staff on topics such as fire and evacuation, first aid, how to respond to penicillin exposure and the site �s EHS targets. The following month, the questions were posed to five employees from each work unit and points were awarded for correct responses.

The team published a league table each month and every quarter the winning team was awarded �1,000for the charity of their choice. In total, competition winners gave �4,000 to charity in 2008.

Following its success at Worthing, the competition was introduced at 12 more sites in the UK, France, China and India in 2008.

This project won second place in the 2008 CEO �s EHS excellence awards in the Safety Initiative category.

Back to top�

Home Responsibility Our people Health safety and wellbeing Training and awareness

Page 281 of 336




Corporate Responsibility Report 2008Performance

Injury and illness rates Our main health and safety measure is the reportable injury and illness rate. We also measure the number of injuries and illnesses that result in lost days, as well as the number of days lost from these injuries and illnesses. This provides an indication of the severity of the incidents, although it is only a rough guide. We have set targets to improve injury and illness rates.

Injury and illness targets

Data cover GSK employees and contract workers who we directly supervise. We report separately data for contractors who work on GSK sites but supervise their own staff in the data table . Contractors� data are not externally verified.

Injury and illness data are collected from all 79 of our Pharmaceutical, Consumer Healthcare and Nutritionals manufacturing sites, 14 of our 15 vaccines sites (one site is not yet in operation), 29 of 31 Pharmaceutical and Consumer Healthcare research and development sites (two sites are considered too new to start reporting), the US and UK headquarters sites, eighteen offices and sales groups with more than one million hours worked, and 46 of the smaller offices and distribution centres.

In 2008 some sales and office sites did not report injury and illness data. We estimate that approximately three per cent of the data are missing due to one large sales group that reported injury and illness in 2007 but not in 2008.

Injury and illness rates

Home Responsibility Our people Health, safety and wellbeing Performance

Performance Data table

Injury and illness target Progress 2006 to 2008

To reduce the reportable injury and illness rate by 5 per cent each year to the end of 2010

Improved 16 per cent

To reduce the reportable musculoskeletalillness and injury rate by 5 per cent each year to the end of 2010

Improved 4.7 per cent

To rank in the first quartile of an industry benchmark group

Improved ranking by one place, remaining in third quartile

Page 282 of 336




The reportable injury and illness rate continues to improve at an average rate of more than five per cent per year across GSK. In 2008 there were 847 injuries and 284 illnesses, a total reportable injury and illness rate of 0.6 reportable injuries and illnesses per 100,000 hours worked. This was an improvement of 16 per cent from the 2006 baseline, exceeding our target.

The reportable ergonomics-related injury and illness rate has improved 4.7 percent from 2006-2008. This is short of our target of an annual five percent improvement through to 2010, equivalent to a 10 per cent improvement over 2006 to 2008. In order to meet or exceed our target in 2009, we will increase our effort and resources in this area.

In our Pharmaceutical and Consumer Healthcare manufacturing organisation, where injury and illness rates are included in managers � objectives, the rate has improved 27 per cent from 2006 to 2008. Machinery safety projects at many manufacturing sites, and projects encouraging employee safety awareness, are examples of initiatives contributing to this improvement.

The rate of lost-time injuries and illnesses has improved only 3.3 per cent from 2006 through 2008 to 0.33 lost-time injuries and illnesses per 100,000 hours worked. However, days lost per 100,000 hours has improved 11.3 per cent indicating a lower number of days lost per incident, possibly an indicator of less severe injuries and illnesses.

In 2006 and 2007 our injury and illness performance places us in the third quartile of a benchmark industry group, which means we need to improve. Our target is to be in the top quartile of comparable industry ratings by 2012.

Read a case study on how a site has improved safety during shutdown.

SGS verified

Injury and illness causesThe most frequent types of incident overall are ergonomic, mainly musculoskeletal illnesses and repetitive strain injuries, accounting for 27.7 per cent of all injuries and illnesses. We continue to expand our ergonomics programmes to address this cause of injury and illness

The most frequent reportable injuries are slips, trips and falls, and account for 19.3 per cent of all injuries andillnesses in 2008. A team is being assigned to look into ways to address this type of injury

Injuries due to machinery accounted for 17.5 per cent of all injuries and illnesses. Our manufacturing sites are renewing their focus on machine safety to continue improvements in this area.

Road traffic accidents accounted for 13.0 per cent of all injuries and illnesses in 2008 and two fatalities detailed below.Driver safety is a continuing area of focus especially in the sales force.

Page 283 of 336




Mental ill health accounts for 3.8 per cent of all injuries and illnesses but these cases result in the highest number of days lost at over 76 days per case on average or 21.5 per cent of the total number of days lost for all injuries and illnesses. This is being addressed by our resilience programme.

SGS verified

Fatalities and serious injuries Employee fatalities

In 2008, one of our sales employees was killed in a fatal road traffic accident in the Philippines. Three passengers were also killed in the accident.

One of our sales employees in India was killed in 2008 when he fell from his bicycle into the path of an oncoming motorized three-wheeler when the front tire of his bicycle was punctured.

Two GSK employees were seriously injured in another road traffic accident in India in 2008 when the vehicle in which they were being transported by a contract driver struck another vehicle, killing two people.

In 2008, there were five amputations and a serious finger injury due to accidents with moving machinery.Three employees had amputations of fingers or finger tips, one employee sustained amputation of a foot and one contract worker had an amputation of his forearm.

An employee in the US was injured when his foot was caught between powered rollers. Reconstructive surgery proved unsuccessful and the foot had to be amputatedA contract worker in India reached into a clothes dryer while it was rotating to remove an article of clothing, resulting in amputation of his forearmAn employee in South Africa slipped on a wet floor and grabbed a piece of equipment to keep from falling.His weight caused a valve to close on his hand amputating his finger at the top joint and badly crushing two fingers. The severed finger was re-attached, but the crushed fingers could not be saved and were amputatedAn engineering mechanic in Pakistan placed his hand on an operating piece of machinery. A tube holder struck a finger inflicting severe damage resulting in amputationAn employee in the US was clearing a jam on an assembly/packing machine and placed her hand on a part of the machine that closed on her finger amputating the finger tipA fitter in Australia suffered serious lacerations to his finger while installing a cutter on a blister pack machine. Hospital treatment was required but amputation was avoided

All of these amputations resulted in renewed emphasis on machine guarding programmes at these sites.

SGS verified

Five year trend in employee fatalities

2008 2

2007 2

2006 3

2005 1

2004 2

2003 5

2002 3

Page 284 of 336




Injury and illness milestonesAll GSK operations strive to work without experiencing any lost-time injuries or illnesses. We issue certificates signed by business heads to sites that reach one million hours worked without a lost-time injury or illness. Sites that reach two or more million hours worked without a lost-time injury or illness are awarded certificates signed by our Chief Executive Officer.

Small sites that do not attain the level of one million hours worked in a three- year period can obtain a certificate for three or more years worked without a lost-time injury or illness.

Milestones achieved in 2008 for hours worked without a lost time injury or illness:

1 million hours: 4 sites2 million hours: 1 site3 million hours: 4 sites4 million hours: 1 site5 million hours: 1 site3 years: 1 site5 years: 2 sites

Back to top

Page 285 of 336




Corporate Responsibility Report 2008Performance

1. The occupational health and safety data cover both our employees and contract workers who are directly supervised by GSK employees. We report a snapshot of injury and illness performance for the year. Cases may be added after the end of the year so prior years may change

2. Lost-time injuries and illnesses are work-related injuries and illnesses that are serious enough to result in one or more days away from work

Home Responsibility Our people Health, safety and wellbeing Performance

Performance Data table

Metric 2001 2005 2006 2007 2008

Injury and illness � GSKemployees1

Hours worked (millions) 191.1 196.6 195.4 196.4 187.7

Fatalities 5 1 3 2 2

Number of injuries with lost time2 751 552 565 585 522

Calendar days lost � injuries3 16,268 11,610 11,291 11,412 10,706

Number of illnesses with lost time2 133 81 98 97 94

Calendar days lost � illnesses3 5,304 3,034 5,454 4,135 3,564

Number of injuries without lost time4 1,079 464 448 393 325

Number of illnesses without lost time4

315 319 287 260 190

Reportable injury and illness rate 0.72 0.72 0.72 0.68 0.60

Reportable ergonomic injury and illness rate

0.20 0.16 0.18 0.18 0.17

Lost-time injury and illness rate 0.31 .032 0.34 0.35 0.33

Injury and illness � non-GSKemployees

Hours worked (million) 17.0 22.8 22.9 26.1 22.0

Fatalities 0 2 0 2 0

Number of injuries and illnesses with lost time

69 98 89 59 74

Calendar days lost 754 1,575 968 924 708

Number of injuries and illnesses without lost time

275 375 400 208

Page 286 of 336




3. Lost calendar days are the calendar days, including weekends which employees could not work because of work-related injuries and illnesses. This helps to provide a measure of the severity of injuries and illnesses

4. Reportable injuries and illnesses without lost time are incidents that did not result in time away from work (lost time). They are more serious than first aid but not serious enough to result in lost time

SGS verified

Back to top�

Page 287 of 336




Corporate Responsibility Report 2008Case studiesDiversity and inclusionWomen in Science Event

We have created a global programme within GSK R&D which encourages and celebrates women in science, the Women In Science Event (WISE).

The programme started in 2004 in the UK, bringing women scientists together for a day-long event for networking, education and knowledge-sharing opportunities and has since developed in scope and attendance.

In 2007 the annual event was held simultaneously at our sites in Stevenage and North Carolina, with a series of speakers, workshops and simultaneous broadcast of the keynote speaker, an internationally renowned female scientist, to both sites.

In 2008 we held events in the UK and at two US sites in North Carolina and Delaware, with a keynote speaker and networking opportunities. We plan hold a further event in late 2009.

Additional speaking and networking events are arranged throughout the year in the UK and US, featuring leading female scientists from GSK.

Scientific Women�s Scholarship programme

The Scientific Women�s Scholarship programme has been in place since 1993. This programme has offered a unique combination of scholarships and mentor relationships with professional women scientists. Supported by an endowment fund, the programme is open to 29 US colleges and universities.

In 2008, 58 women scholars were selected to participate in the programme with GSK in Research Triangle Park, North Carolina. Fifty-five GSK mentors worked with the scholars to pass on their dedication, energy and passion for science to this new generation of students.

The scholars are paired with professional women scientists at GSK who serve as their mentors. These women take the scholars under their wing, provide them with expert advice and share their experiences and lessons learned over the years.

GSK volunteer mentors also work to secure internship funding and opportunities for their scholars. The internships offer insight into careers and give the scholars hands-on experience in the pharmaceutical industry.

Supporting adult literacy

Our manufacturing sites in Nabha and Rajamundy, India, are taking action to improve literacy rates among their employees. At the beginning of 2007, around ten per cent of workers could not read or write and had to use a thumb print instead of signing their name.

The sites set a goal for all employees to be able to sign their name. Employees at the Nabha factory took nearly 10,000 hours of training in total, including sessions on how to read and write in Punjabi and English. As a result of the initiative, 154 people learned to read and write and all employees are now able to sign their name.

Sessions also included areas such as family relations, AIDS awareness, good health practices and

Home Responsibility Our people Case studies

Page 288 of 336




domestic safety and budgeting.

The project received an honourable mention in the Employee Attraction, Development and Retention category at the 2008 Multicultural Marketing and Diversity Awards.

Occupational health and safetyContractor competition improves safety during shutdown

GSK �s Slough site, which makes Lucozade and Horlicks powders, holds an annual shutdown to clean and maintain manufacturing equipment.

The site�s EHS team developed a programme to reduce the number of accidents occurring during the shutdown, a time of increased risk to employees and contractors when they undertake non-routineengineering activities in a short period of time. The team reviewed the log of accidents and near-misses from previous shutdowns, and held briefing meetings with supervisors and contractors to raise awareness of risks. It then ran a competition to identify and reward contractors with the best safety performance.

The initiative has contributed to a 70% reduction in minor accidents during shutdown, and there have been no reportable incidents since the competition began in 2007.

This project won third place in the 2008 CEO�s EHS excellence awards in the Safety Initiative category.

Page 289 of 336





As you reduce your workforce, how will you ensure that your remaining employees are not faced with additional stress in their jobs?

We recognise that stress at work is an important issue. We have established programmes to help individuals and teams deal with stress, and offer other support such as on-site health and fitness centres, flexible working arrangements, family support services and health education.

GSK aims to simplify its operating model and create a culture of individual empowerment, where each employee takes responsibility for his or her own work. We are simplifying how we work by removing processes and structures. This reduces the amount of work there is to do in some areas, and as a result fewer people are required. Empowering individuals to make decisions and carry out work without layers of bureaucracy will support this.

How will your Operational Excellence programme affect employees?

Regrettably, our Operational Excellence programme will result in job losses. We will do everything that we can to support affected employees including providing a competitive severance package and providing outplacement support such as assistance in identifying alternative employment, career counselling and retraining.

We will also work hard to ensure the programme does not have a negative impact on the morale of other staff. We have produced a guide for managers with information on how to support employees during the uncertainty, anxiety and stress encountered during major organisational change.

Why are there still relatively few women in senior management at GSK?

We are pleased that the percentage of women in management has increased incrementally over the last four years. However, we recognise that there is still room for improvement, especially in senior management positions and in roles within historically male-dominated disciplines such as science and engineering.

We aim to attract more women to GSK and to support the career development of existing employees through our flexible working programmes. These help employees balance the demands of their personal and professional lives. We also have diversity champions in each business unit as well as employee networkswhich support career development for women and minority groups at GSK.

Your health and safety performance is below the industry average. What needs to improve?

We know we need to improve our performance in this area. In 2008, an assessment project identified ergonomics and attitudes to health and safety in the workplace as among the main causes of injuries and illnesses. We will target our awareness and training programmes based on these results. During the year,we also launched a toolkit to help sites assess their risks and identify interventions. This has been adopted by our Pharmaceutical manufacturing business and behaviour-based safety programmes are now planned in all sites.

What progress have you made toward your �respirator-free� target?

Results of baseline monitoring of the level of exposure to chemicals in the workplace are being used to define where new and upgraded engineering controls are needed to meet the target for employees in 80% of

Home Responsibility Our people Q&As

Page 290 of 336




operations to be able to work without needing to wear respiratory protection. We have reached 42% ofoperations that have achieved this level of engineering control pending completion of full verification monitoring. We continue to upgrade engineering controls to achieve �respirator free � levels of control but for situations where engineering controls are not possible we will make sure appropriate respiratory protective equipment is used.

Page 291 of 336




Corporate Responsibility Report 2008Human rightsWe are committed to upholding the UN Universal Declaration of Human Rights, the OECD Guidelines for Multi-National Enterprises and the core labour standards set out by the International Labour Organization. We are a signatory to the UN Global Compact, a voluntary global standard on human rights, labour, the environment and anti-corruption.

We believe that governments have a responsibility to define and enforce a legal framework for human rights in accordance with international laws and agreements, such as the Universal Declaration of Human Rights.

Businesses also have responsibilities. We work hard to uphold human rights within our sphere of influence, which includes employees, suppliers, communities and society. We have most direct control over human rights in our own operations and can also influence our supply chain and wider society. As a marketer of medicines, we strive to make them as widely available as possible while running our business in a sustainable way.

High standards of human rights are important to GSK because they:

Help us get the best from our employees

Support our relationships with communities near our sites

Ensure supplier contracts run smoothly and provide a reliable supply of high-quality products

Protect our reputation

Human rights are relevant to many of the issues covered in this report. This section gives an overview of our approach.

More information on GSK and human rights

See the human rights clauses included in our contracts with suppliers

Read more about our supply chain

Read about our efforts to improve access to medicines

Read about our investment in local communities

Read about our employment practices

Read our position statement on the Convention on Biological Diversity

Home Responsibility Human rights

Page 292 of 336




Corporate Responsibility Report 2008EmployeesOur employment standards on issues such as diversity, equal opportunities and health and safety protect employees� human rights.

As an employer we are:

Committed to providing a fair salary and good employment conditions

Committed to providing a healthy, safe and secure workplace for all employees and contractors

Opposed to discrimination at work and committed to promoting respect for diversitys

Committed to promoting the personal development and dignity of every employee

Respectful of employees � right to join an independent trade union and freedom of association

Opposed to all forms of slavery and exploitative child labour and will work with appropriate partners to address this problem responsibly wherever we encounter it.

Employees can report any concerns to their supervisor or line manager, to human resources or to our ethics and compliance office. They can also use our Global Confidential Reporting line.

Read more about our employment practices.

Home Responsibility Human rights Employees

Page 293 of 336




Corporate Responsibility Report 2008SuppliersAs a buyer of raw materials, manufactured goods and services around the world, we require all our suppliers, contractors and business partners to meet the same standards on human rights as GSK.

We will not knowingly use suppliers who are responsible for human rights infringements. We conduct regular audits of existing suppliers and only engage new suppliers that meet our expectations. Human rights clausesare included in our contracts.

We consider human rights issues during routine interactions with critical suppliers (contract manufacturers and suppliers that present the greatest risk to GSK in one or more key risk areas). EHS audits of potential new and existing critical suppliers also include questions which help us identify potential breaches of the human rights clauses included in supplier contracts. Suppliers are asked for information on policies and practices relating to:

Age limits for employees

Discrimination against employees and the local population

Prevention of abuse of individuals

Wages, benefits and working hours (whether they meet the legal minimum)

Rights for workers to organise and recognition of worker organisations

These questions do not contribute to the EHS audit score, but may be a reason not to progress business with a supplier.

Read more about our supply chain.

Home Responsibility Human rights Suppliers

Page 294 of 336




Corporate Responsibility Report 2008CommunitiesWe respect and promote the rights of all those in the communities near our operations. For example:

Local communitiesGSK aims to have good relationships with all the communities around our sites and to operate in ways that do not infringe their human rights. We seek to minimise our impacts on the local environment and operate our sites safely. We aim to bring social and economic benefits to areas where we have a presence. Read more about our investment in local communities

UN Convention on Biological Diversity (CBD)The Convention on Biological Diversity provides a framework for the conservation and sustainable use of biodiversity. It also promotes fair and equitable sharing of the benefits arising from the use of genetic resources. GSK supports the CBD �s role.

We are not currently involved in any bioprospecting activity. As a result, we have no access and benefit-sharing agreements in place.

It is possible that in future we may undertake development work using natural genetic resources indigenous to a particular country. In that instance, access to those resources would be obtained in accordance with the CBD, as reflected in local laws. We would ensure that relevant parties received agreed benefits from the use of the resources, for example monetary payments.

Read our position statement on the Convention on Biological Diversity

Read our position on protecting biodiversity.

Home Responsibility Human rights Communities

Page 295 of 336




Corporate Responsibility Report 2008SocietyThe UN Declaration of Human Rights states that �everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including medical care�.

Improving healthcare is one of the greatest challenges we face, particularly in the developing world. GSK contributes to healthcare in the developing world by discovering new treatments and vaccines. We also make a wide range of our products more affordable in developing countries through preferential pricing and voluntary licence agreements with generic manufacturers.

We engage with governments, multilateral agencies, NGOs and other pharmaceutical companies to help improve access to medicines. Read more about our efforts to improve access to medicines and our community investment initiatives.

Home Responsibility Human rights Society

Page 296 of 336




Corporate Responsibility Report 2008Activities in sensitive countriesSome stakeholders are concerned about GSK�s business activity in countries with poor human rights records, such as Burma (Myanmar), North Korea and Sudan. We share the UN �s belief (see box) that peopleshould not be denied access to medicines because of the regime operating in their country.

We aim to provide medicines and vaccines in all countries that need and wish to purchase them. We observe any trading controls required by law in the countries where we operate.

In many nations our long-standing commitment and presence pre-date their oppressive regimes and the subsequent introduction of measures such as trade embargoes. During periods of government-imposedtrade embargoes, we have continued operations (subject to any specific legal restrictions) due to the need for our products.

In sensitive countries, as in all countries where we operate, we support and are committed to upholding the Universal Declaration of Human Rights and the core standards set out by the International Labour Organization. We observe all local laws and regulations.

UN statement on the right to the highest attainable standard of health

Paragraphs relating to access to medicines in sensitive countries:

Paragraph 12: �Health facilities goods and services must be accessible to everyone without discrimination, within the jurisdiction of the State party. �

Paragraph 41: �Parties should refrain at all times from imposing embargoes or similar measures restricting the supply of another State with adequate medicines and medical equipment. Restrictions on such goods should never be used as an instrument of political and economic pressure �.

Paragraph 42: �While only States are parties to the Covenant and thus ultimately accountable for compliance with it, all members of society - individuals, including health professionals, families, local communities, intergovernmental and non-governmental organizations, civil society organizations, as well as the private business sector - have responsibilities regarding the realization of the right to health. State parties should therefore provide an environment which facilitates the discharge of theseresponsibilities. �

Read the full UN statement for the right to the highest attainable standard of health.

Home Responsibility Human rights Activities in sensitive countries

Page 297 of 336




Corporate Responsibility Report 2008Public policy and patient advocacyThe pharmaceutical industry is highly regulated. Government policy and legislation can have a significant impact on our business so it is important that we engage with governments and other stakeholders in the legislative and policy process.

Through our public policy activity we work towards legislation and policy that encourage scientific innovation and balance the interests of business with those of other stakeholders. We also work with patient groups to help give their members a voice in the healthcare debate.

We believe that we conduct our advocacy work responsibly and make a valuable contribution to the debate on public policy issues that impact our business, particularly those relating to research and development, the use of pharmaceuticals and healthcare.

We aim to increase stakeholder trust in GSK and, by being transparent about our lobbying and public policy work, to address concerns from some stakeholders that the pharmaceutical industry has too strong an influence over governments. We publish our annual public policy activity on this website and report on our memberships of trade associations, our political contributions and US lobbying expenditures. We also publish information on our work with patient groups, including details of the funding we provide.

We provide information on our approach to working with doctors and healthcare professionals in the Research practices and Ethical conduct sections of this website.

Home Responsibility Public policy and patient advocacy

Back to top

Page 298 of 336




Corporate Responsibility Report 2008Our approach to external affairsEmployees involved in public policy work must abide by our Employee Guide to Business Conduct which is based on three principles:

Partnership: we are committed to working with governments and regulatory authorities in a constructive way

Communication: as well as giving our views, we take on board any concerns from external audiences. This enables us to assess and improve our business practices

Integrity: we base our public policy work on research, analysis and facts. We respect other opinions and look for constructive solutions. All of our external affairs work must be in line with our Code of Conduct and other relevant policies including those related to competition law, preventing corrupt practices and political contributions

We have external affairs teams in our major regions who monitor proposed legislative reforms and policy developments. They meet regularly with government officials and other stakeholders, for example multilateral organisations and NGOs, to explain our views on a range of public policy issues. We tailor our approach to suit different cultures and political traditions in the countries where we engage in the public policy process, while ensuring that our position in these discussions is fully consistent with our public policy statements. We ensure that the standards set out in our Guide to Business Conduct are applied globally.

Lobbying on issues affecting the whole pharmaceutical industry is sometimes conducted through trade associations. We may also hire professional lobbyists to support our public policy work.

We have a Political Contributions Policy governing our contributions to political candidates and parties.

Trade associationsGSK is a member of many trade and industry organisations, including:

Association of the British Pharmaceutical Industry (ABPI)BioIndustry Association (BIA)Biotechnology Industry Organization (BIO)British Pharma Group (BPG)Confederation of British Industry (CBI)European Federation of Pharmaceutical Industries (EFPIA)International Chamber of Commerce (ICC)Intellectual Property Owners Association (IPO)International Federation of Pharmaceutical Manufacturers and Associations (IFPMA)Japan Pharmaceutical Manufacturers Association (JPMA)Organisation of Pharmaceutical Producers of India (OPPI)Organization For International Investment (OFII)Pharmaceutical Research and Manufacturers of America (PhRMA)

It is important that any lobbying conducted through trade associations reflects our policies and values. We work with other members to help set policies and may also attend lobbying meetings with governments and other stakeholders.

Home Responsibility Public policy and patient advocacy Our approach to external affairs

Page 299 of 336




Sometimes we do not share the same views on a particular issue as other members of a trade association. If a trade association adopts a public policy position that we do not agree with, we will not participate in advocacy activity related to that subject. Senior GSK managers sit on the boards of the majority of industry trade associations of which we are members and raise any concerns we may have about a particular advocacy position.

Back to top

Page 300 of 336




Corporate Responsibility Report 2008Public policy activity in 2008We engage with governments and other stakeholders on a wide range of issues that affect our industry.

These are some of the key issues we engaged on during 2008:

Access to healthcare and disease prevention

Research practices

Patient safety

Intellectual property

Pricing and competitiveness

We publish our position on key issues relating to corporate responsibility, including:

Access to medicines in developing countries

Research and development

Intellectual property

The environment

Public health

Competitiveness

Pricing, reimbursement and market access

We are happy to discuss our position on these or any other issues with legitimate parties. Contact our corporate responsibility team at [email protected].

Home Responsibility Public policy and patient advocacy Public policy activity in 2008

Back to top

Page 301 of 336




Corporate Responsibility Report 2008Advocacy on healthcare and disease preventionGlobal activitySafeguarding timely and unrestricted access to influenza viruses

Organisations engaged: World Health Organization (WHO), key developed and developing country governments (including countries affected by the H5N1 strain), EU institutions

Industry associations involved: EFPIA (EVM), IFPMA (IVS), PhRMA

GSK position: The influenza virus is very unstable and can mutate quickly. Governments must remain vigilant to the emergence of new strains of the virus and must share virus strains freely with other governments. The free sharing of viruses is in the best interests of global public health as it enables governments to develop vaccines which may prevent an influenza pandemic. The WHO �s Global Influenza Surveillance Network recommends the content for influenza vaccines twice a year and will act as a global alert mechanism in the event of a pandemic. The international community should unconditionally support the Network, which relies on receiving information on virus strains from governments.

Despite the importance of timely and unrestricted access to viruses, Indonesia stopped sharing influenza viruses with the WHO in 2007 insisting on �access and benefits � in exchange for viruses. The international community � including the vaccine industry � spent much of 2008 finding a way to help developing countries prepare for a pandemic. Some progress was made towards agreeing an effective solution at the InterGovernmental Meeting in Geneva in December 2008. GSK is hopeful that a solution that will ensure speedy access to the pandemic virus while assuring developing countries of the support they require to secure access to pre-pandemic and pandemic vaccines will be agreed at the next IGM in May 2009.

US activityInvestment in chronic disease prevention and treatment

Organisations engaged: US Department of Health and Human Services, Office of the First Lady, US Congress, White House, state legislators, Governors� Offices, various state health agencies

Industry associations involved: PhRMA

GSK position: Chronic diseases such as diabetes, heart disease and lung disease account for three-quarters of healthcare spending. Relatively little is invested in prevention even though many chronic diseases and their costly complications are preventable and increasingly manageable. We are advocating a three-partapproach to achieving lower-cost, higher-quality healthcare: increasing prevention, improving treatment, and accelerating research into better treatments for chronic disease. Healthcare providers need incentives to promote preventative services that address major causes of chronic disease such as obesity and smoking. Healthcare policy needs reform to better encourage and reward medical research into improved treatments for costly, unmet medical needs such as Alzheimer�s disease. Preventing and better managing chronic diseases will reduce overall healthcare costs in the long term.

Supporting a petition to protect Americans from fraudulent weight loss claims

Organisations engaged: US Food and Drug Administration

Industry associations involved: None. See below for the healthcare associations involved.

Home Responsibility Public policy and patient advocacy Public policy activity in 2008Advocacy on healthcare and disease prevention

Page 302 of 336




GSK position: In the US, two-thirds of adults are overweight or obese, increasing their risk of illnesses such as cancer, heart disease and type 2 diabetes.

There are dozens of dietary supplements on the market in the US which manufacturers claim can help people to lose weight. Most of these claims are not reviewed by the Food and Drug Administration (FDA) and are not supported by credible scientific evidence. Ineffective weight loss products can prevent people getting the support they need to lose weight. The US Federal Trade Commission �s Consumer Fraud Survey recently highlighted that there were more victims of fraudulent weight-loss products, 4.8 million American consumers, than any of the other frauds covered by the survey.

GSK manufactures alli, the only over-the-counter weight loss product that has gained FDA approval for safety and efficacy. In April 2008, GSK and three research and advocacy organisations (the American Dietetic Association, the Obesity Society and Shaping America�s Health) submitted a citizen �s petition to the FDA, asking it to provide greater protection for Americans from fraudulent weight loss claims.

The petition requests that the FDA treats weight loss claims in the same way as unsubstantiated claims of efficacy against disease, which are not permitted under the Dietary Supplement Health and Education Act. The petition calls for the FDA to require rigorous scientific evidence for any such claims. It also aims to raise awareness and educate the public about the issue of fraudulent weight loss products.

In a separate development, in January 2009 the FDA demanded the recall of a large number of weight-losssupplement products and warned a number of companies that they may be liable for criminal charges. Among the FDA�s complaints against 69 supplement products in the US was the illegal inclusion of regulated, unapproved or withdrawn prescription pharmaceuticals, including sibutramine and rimonabant (weight loss), phenytoin (anti-seizure) and phenolphthalein (laxative, previously withdrawn by the FDA due to carcinogenicity). GSK supports and will continue to work with the FDA to help protect the public from false and unsubstantiated weight loss claims and possibly unsafe products.

Back to top�

Page 303 of 336




Corporate Responsibility Report 2008Advocacy on research practicesWe regularly engage with policy makers and other stakeholders on issues relating to research practices and the research environment. Read more about research practices.

Global activityAdvocacy on revisions to the Declaration of Helsinki

Organisations engaged: World Medical Association, American Medical Association

Industry associations involved: BIO, IFPMA, PhRMA

GSK position: The Declaration of Helsinki sets out the ethical principles for the conduct of research on human subjects. The Declaration was revised in 2008 by the World Medical Association. We urged the World Medical Association to resist changes that make the document more detailed and prescriptive, because we believe they create confusion and conflict with other, more detailed guidance such as ICHguidance on Good Clinical Practice.

Shaping the scope of the International Regime on Access and Benefit Sharing

Organisations engaged: Secretariat to the Convention on Biological Diversity (CBD), Ad Hoc Working Group on Access and Benefit Sharing, UK DEFRA, DG Trade (European Commission), national European governments, US government.

Industry associations involved: BIO, BPG, EFPIA, ICC, IFPMA, PhRMA

GSK position: The Convention on Biological Diversity (CBD) was signed in 1992. It has three main goals, including the fair and equitable sharing of benefits arising from the use of �genetic resources �. GSK believes that the best way to achieve the CBD �s access and benefit-sharing objectives is for countries to introduce national laws governing access to their genetic resources and for mutually agreed contracts to define how any benefits arising from their use should be shared. This approach allows national governments the flexibility to develop guidelines that will best serve their national interests, and enables users of the guidelines to reach agreements that are appropriate to each individual case.

Notwithstanding GSK �s support for national legislation we recognise the CBD �s mandate to �elaborate and negotiate an international regime on access and benefit-sharing�. We believe that the resulting regime, currently under discussion within the CBD, should be consistent with the CBD�s treaty and objectives. It should create no new obligations for CBD signatories and should not be applied retrospectively. It should provide guidance to governments and other CBD members on how to achieve access and benefit-sharingobjectives, rather than prescribing rules. It should adopt a sectoral approach and not seek to enforce a �onesize fits all� solution on all industries. It should apply only to genetic resources as defined in the CBD, not a broader class of materials. It should not extend to human genetic resources, nor to derivatives, or pathogens.

Read our position statement on the Convention on Biological Diversity.

European activityAdvocacy on the European Animal Directive

Organisations engaged: European Commission

Industry associations involved: ABPI, EFPIA

Home Responsibility Public policy and patient advocacy Public policy activity in 2008Advocacy on research practices

Page 304 of 336




GSK position: The European Animal Directive, originally introduced in 1986, governs the use of animals for experimental or other scientific purposes. It aims to establish a framework for all animal research activities within the EU. The European Commission has published a draft revision of the Directive which controls theuse of laboratory animals and sets minimum standards for their housing and care.

GSK welcomes the review of the Directive and recognises the need for it to be revised to reflect advances in animal welfare and science. We welcome many of the recommendations in the draft revision, many of which are already integrated into our current practices. For example, we welcome the rules relating to the replacement, reduction and refinement in the use of animals in research (known as the 3Rs), and the need for a permanent or standing ethic review body in the establishments that use animals in research.

It is essential that any legislative changes achieve high animal welfare standards while supporting an environment that allows research that leads to new medicines and vaccines to meet patients � needs. In thisregard we have a number of concerns related to the restrictions on the use of non-human primates to those diseases that are considered life-threatening or seriously debilitating and the reuse of surgically instrumented animals which is likely to result in an increased number of animals where procedures are mild to moderate.

Read our position statement on use of non-human primates in research.

Supporting a new approach to pharmacovigilance in the EU

Organisations engaged: European Commission, European Medicines Agency, UK government

Industry associations involved: ABPI, EFPIA

GSK position: GSK seeks a new approach to pharmacovigilance regulation in the EU that will allowpharmaceutical companies and regulators to focus their resources on safety evaluation activities instead of compliance with unclear and complex regulatory demands.

New pharmacovigilance legislation should contain clear and concise provisions to simplify, strengthen and provide legal certainty to the EU legislative framework for pharmacovigilance. Specifically, it should:

Contain a single set of simplified rules, and a single reporting point, for adverse drug reactions in the EU

Require the reporting of all serious cases when an electronic reporting system is implemented

Contain clear and flexible provisions that allow individual companies to appoint the number Qualified Persons for Pharmacovigilance (QPPVs) they require

Provide consistent standards for inspections of company pharmacovigilance departments by EMEA and EU member state authorities

Back to top�

Page 305 of 336




Corporate Responsibility Report 2008Advocacy on patient safetyUS activityLegislation on prescription medicine imports

Organisations engaged: US Department of Health and Human Services, Food and Drug Administration (FDA), US Congress, state Boards of Pharmacy, state legislators, Governors� Offices

Industry associations involved: BIO, PhRMA

GSK position: Current US law prevents prescription medicines from being imported to the US unless they have safety and cost savings certifications from the Secretary of Health and Human Services. Pending legislation would remove the safety and savings certification requirements, making it easier to legally import medicines. This would undermine the FDA �s ability to protect the US distribution system from counterfeit and unsafe medicines that could harm patients. There is also no guarantee that consumers would save any money, as the Department of Health and Human Services has found that third-party payers such as insurance companies are most likely to benefit.

GSK supports safer alternatives to help patients afford their medicines. The Partnership for Prescription Assistance (PPA), for example, gives access to more than 475 public and private patient assistance programmes, for patients who lack prescription drug coverage. Read more about GSK �s Patient Assistance Programs.

Home Responsibility Public policy and patient advocacy Public policy activity in 2008Advocacy on patient safety

Back to top�

Page 306 of 336




Corporate Responsibility Report 2008Advocacy on intellectual propertyUS activityUS patent system reform � Federal legislation

Organisations engaged: Patent and Trademark Office (PTO), US Congress

Industry associations involved: BIO, Coalition for 21st Century Patent Reform, PhRMA

GSK position: A patent law framework that provides business certainty over a long period and promotes investment is essential to the research-based pharmaceutical industry and a wide range of other manufacturers that have long lead times from research to market. The US Congress is considering patent reform legislation that could have a negative effect on the current framework. Specifically, the proposals fail to strike an appropriate balance in the areas of restricting abuse of the inequitable conduct doctrine (which encourages infringers to try to prove in litigation that a patent was improperly obtained so that a completely valid patent may be held �unenforceable �) and the allocation of damages for infringement. In addition, giving the PTO substantive rule-making authority removes responsibility for establishing substantive patent law from Congress and innovation policy from the public debate.

GSK is working with a coalition of research-based companies, manufacturers, universities and small inventors to promote US patent reform that stimulates investment in research and strengthens the patent system. We support patent reforms that are clear, provide business certainty, improve the quality of patents and remove subjectivity in litigation issues.

Asian activityCompulsory licensing in Thailand

Organisations engaged: Thai government including the Thai Ministry of Public Health; academics, NGOs and members of the business community in Thailand; World Health Organization; international NGOs; US and EU member state

Industry associations involved: BPG, EFPIA, IFPMA, PhRMA, PReMA

GSK position: In late 2006 the Thai government issued compulsory licences on three pharmaceutical products. Four more compulsory licenses for oncology products were announced just prior to the previously elected government leaving office in early 2008 of which two were implemented. We support the Thai government �s public health goals and want to help improve health outcomes for people in Thailand. Compulsory licences are a legitimate policy option for the Thai government but they should not be used as a routine policy tool or for commercial purposes. Rather than unilaterally using compulsory licences to increase access to medicines, we believe it is more effective to engage in dialogue with industry and other stakeholders to find sustainable ways to address healthcare issues, including access to medicines. We hope to reinforce this dialogue with governments and other stakeholders in the future.

Healthcare and intellectual property in India

Organisations engaged: Relevant agencies in the Indian government; members of the pharmaceutical industry and the wider business community in India; Indian academics and civil society representatives; US and EU member state governments; European Commission

Industry associations involved: BPG, EFPIA, OPPI, PhRMA

Home Responsibility Public policy and patient advocacy Public policy activity in 2008Advocacy on intellectual property

Page 307 of 336




GSK position: We believe that India �s tremendous strengths in science and pharmaceuticals, coupled with its rapid economic growth, offer the government an opportunity to tackle some fundamental characteristics of its healthcare system and policy base. Further improvements in India �s intellectual property (IP) regime to the level provided in the EU and US could further encourage investment in collaborative R&D. Issues of IP rights are not the fundamental barrier to access to healthcare and we believe that reform and increased investment in the Indian healthcare system should be a priority. We want to be active partners in addressing these challenges.

Back to top�

Page 308 of 336




Corporate Responsibility Report 2008Advocacy on pricing and competitivenessEuropean activityGuiding principles for relative effectiveness assessments and pricing

Organisations engaged: EU member states, the European Commission, stakeholder representatives participating in the EU�s High Level Pharmaceutical Forum

Industry associations involved: EFPIA, EuropaBio

GSK position: Government funding decisions are often based on an assessment of a medicine �s clinical or cost effectiveness. We believe that these value assessments should be conducted transparently and in a timely manner and all key stakeholders should be able to submit evidence for the assessments. Governments should allow greater pricing flexibility when the long-term value of a medicine is not certain at launch.

GSK, representing EFPIA, strongly supported the Good practice principles for relative effectiveness assessments which were developed within the framework of the EU�s High Level Pharmaceutical Forum (HLPF). These were adopted in 2008 along with the Guiding principles for good practices implementing a pricing and reimbursement policy. EFPIA �s Health Technology Assessments principles, which the industry has previous adopted and that GSK helped to develop, are aligned with the principles adopted by the HLPF.

Improving regulations that impact on the pharmaceutical industry�s competitiveness in the UK

Organisations engaged: UK government and the European Commission

Industry associations involved: ABPI, CBI, Institute of Directors

GSK position: The pharmaceutical industry is one of the most highly regulated industries in Europe. GSK supports strong regulation but has been working with the UK government and the European Commission to propose ways to simplify regulations while achieving the same policy goal. This aligns with the aims of the UK government and European Commission to reduce the regulatory burden placed on industry.

GSK submitted a series of 50 proposals to the UK government for simplification of existing regulations. We also made a similar submission to the Commission, focusing on regulations that originate at a European level.

Home Responsibility Public policy and patient advocacy Public policy activity in 2008Advocacy on pricing and competitiveness

Back to top�

Page 309 of 336




Corporate Responsibility Report 2008Political contributions and lobbying expendituresIn late December 2008, GSK announced a new global policy to voluntarily stop all corporate political contributions.

Prior to this, GSK made political contributions with corporate funds in countries where they were authorised by law and were culturally appropriate, such as the US and Canada. The new policy ensures that no such contributions will be made in the future.

Contributions to political parties or other political organisations in the European Union were prohibited by GSK policy prior to this change. See the corporate governance section of our Annual Report for more information.

Prior to this policy change, in 2008 we contributed �347,000 to political organisations in the US and Canada.

In the rest of the world, contributions have been very rare and of low monetary value. These contributions were agreed by local management and approved by GSK�s international legal operations and corporate government affairs department. All contributions were made in compliance with local laws and customs.

Contributions in the USIn the US, corporate contributions to party affiliated committees and candidates running for federal office are prohibited by law. State and local political campaigns are financed through a variety of sources including contributions from companies, individuals, NGOs and local campaign committees. By supporting pro business candidates, corporate contributions are an accepted and legal means for corporations to have a voice in the political debate. However, to ensure that there is no implication whatsoever that such contributions provide GSK with any special privileges, the company changed its policy in late December 2008 to prohibit any corporate contributions to political candidates.

Contributions to state candidatesIn 2008 prior to the change in policy, GSK donated �319,000 to candidates for state-held offices. Contributions were only made where permitted by law and were not made on the basis of political party.

Contributions were made to candidates who support an environment that appropriately rewards high-risk,high-investment industries and who work to preserve free market principles and intellectual property rights. We made approximately 46 per cent of our contributions to Republican candidates and 54 per cent to Democratic candidates. All states publish information disclosing the names of contributors and the amount of contributions that are at or above an established threshold.

Political Action Committee contributionsIn accordance with the Federal Election Campaign Act, GSK established a Political Action Committee (PAC) that facilitates voluntary political contributions by eligible employees.

The PAC is not controlled by GSK. Decisions on the amount and recipients of contributions are made by participating employees exercising their legal right to pool their resources and make political contributions. All PAC contributions are voluntary and contributions are subject to strict limitations. For example, the GSK PAC may not contribute more than $5,000 per election to an individual candidate for federal office.

The PAC is run by a governing board of participating GSK employees from across the company. As required by law, PAC contributions are reported to the Federal Elections Commission (FEC). In 2008, the GSK employees� PAC contributed �539,359 - 58 per cent to Republicans, 40 per cent to Democrats and two per cent to unaffiliated or other party candidates running for state and federal offices.

Home Responsibility Public policy and patient advocacyPolitical contributions and lobbying expenditures

Page 310 of 336




Contributions in CanadaIn 2008, GSK donated �28,000 in Canada to political candidates in those provinces where it is legal.

Lobbying expenditureEuropeIn December 2008, GSK signed up to the European Commission�s new code of conduct and the voluntary register of organisations working to influence European Union institutions. In the �transparency register of interest �, we declared the costs associated with lobbying of the EU institutions to be in the range of D750,000-800,000 in 2008. This includes running of the Brussels advocacy office, salaries, external events and educational materials. This figure takes into account the proportion of employee time spent on interest representation.

USWe report our US lobbying expenditures to the US Congress in accordance with the Lobbying Disclosure Act 1995. We spent $6.99 million in federal lobbying activities in the US during 2008. This includes the costs of salaries and benefits for all employees registered to lobby the US government; use of lobbying consultants; support for lobbying contacts such as planning activities and research; running the GSK Washington DC government affairs office; support staff; and the portion of trade association fees associated with federal lobbying. We also report our state lobbying expenses, in line with applicable state laws.

Contributions to policy groupsGSK contributes to various groups which provide a forum for policy analysis and debate. This includes think tanks in a number of countries, and '527' organisations in the US.

Page 311 of 336




Corporate Responsibility Report 2008Patient advocacyPatient groups are non-profit organisations founded by patients, care-givers, family members and health professionals.

They provide their members with information about their condition and guidance on how to live with their disease. They engage with healthcare providers, governments and the media to promote improved treatment and services for patients and campaign for change on issues that affect patients� and carers � lives. Some carry out vital research into the causes and potential treatments for specific conditions.

GSK works with a wide range of patient groups in disease areas such as cancer, asthma, diabetes, Alzheimer�s disease, multiple sclerosis and HIV/AIDS. GSK and patient groups share a common concern that healthcare systems should focus on preventing, treating and managing disease. Both parties believe that patients should have access to quality medicines, services and information on disease.

Patient groups are important stakeholders for GSK and we engage with them as part of our commitment to be a patient focused company. Our relationships with patient groups are mutually beneficial. They help us to better understand patient needs and their illnesses. We work with patient groups to strengthen their support for patients throughout their illness, from diagnosis to chronic treatment and end-of-life care. We also helpthese groups give patients the ability to have their voice heard in the healthcare debate, alongside other stakeholders.

Our approachWe support patient groups across the world in a number of different ways. These include:

Providing core funding to support the day-to-day running of the group

One-off donations to help patient groups conduct a specific event or activity, for example a breast cancer awareness day

Educational support

Training staff in management skills and disease education

Working together on disease awareness/prevention projects

Our relationship with each patient group is defined by a written agreement specifying how the group will use our funding to benefit its members.

Some stakeholders are concerned that pharmaceutical companies use patient groups as a way of marketing their products. Our support for patient groups is about the bigger agendas that dictate whether or not new medicines are made available to patients, and whether patients have access to the kind of treatments that they need. We are committed to maintaining the highest ethical standards and transparency in this area.

We have developed detailed guidance and Standard Operating Procedures (SOP) for employees in each of our major regions. These policies, used in conjunction with GSK�s patient advocacy manual, ensure that GSK employees who work with patient groups comply with applicable laws and regulations and our standards. Read a summary of our SOP.

All employees, and outside agencies working for GSK that are likely to interact with patient groups, must abide by our guidelines and SOPs. We provide training so that our employees understand our requirements. For example in 2008, around 70 marketing employees in the US attended a webinar on our guidelines and SOPs.

Home Responsibility Public policy and patient advocacy Patient advocacy

Page 312 of 336




Our patient advocacy teams in Europe and our Asia Pacific, Japan and Emerging Market region coordinate interaction with patient groups and adherence with our policies and global principles. In the US, patient advocacy is decentralised across a number of functions including state government affairs, R&D, communications and marketing, but is coordinated by the state government affairs group.

Employees in all regions can access our patient advocacy resource intranet site. In Europe, we also publish a newsletter to raise employee awareness about internal and external developments relating to patient groups.

In 2007, we conducted a review of departments that have relationships with patient groups in the US. This led to the development of an interactive patient group database that tracks our relationships with patient advocacy groups and the projects we support. This will enable employees to learn about past interactions with patient groups and the type of projects supported. It will help us to allocate resources to patient groups more efficiently. The database will be launched in 2009.

Encouraging independenceWe believe that patient groups should be independent and we encourage them to seek financial support from as wide a range of organisations as possible. We ensure that the funding we give to patient groups is appropriate to their size.

Our guidelines state that GSK funding should make up no more than 25 per cent of a group �s overall income. In the vast majority of instances the actual percentage is much lower. We allow some exemptions to the 25 per cent cap as some of the groups supported have limited incomes, so a small donation (for example �1,000) would exceed the limit, and because some groups have difficulty attracting funding because of the nature of their activity (for example, providing needle exchange for drug users). These cases must be approved by the general manager of each local operating company. We also encourage patient groups to seek funding from multiple sources and we hold workshops on how to make funding applications.

Page 313 of 336




Corporate Responsibility Report 2008TransparencyWe believe that being transparent about our support for patient groups helps build trust with our stakeholders, including the groups themselves.

We publish information on all our work with patient groups in our Europe and Asia Pacific, Japan and Emerging Markets regions, as well as information on our support for patient groups working globally, including details of the funding received. See details of our funding for patient organisations.

We were the first pharmaceutical company to publish this level of information and it goes beyond industry codes of practice that at most require a list of the groups funded.

Detailed information for GSK Australia and Canada can be found on their websites.

In the US, from February 2009 we will report educational and charitable grants provided to health-relatedorganisations, including hospitals, teaching institutions and patient advocacy groups. The report will be updated quarterly.

See details of our funding for patient organisations

Working with patient groups

Our Standard Operating Procedures state that:

Any involvement with a patient organisation must be declared and transparentGSK must neither seek patient organisation endorsement for its medicines, nor pay patient groups to endorse GSK servicesMedicines must not be promoted to patient organisationsGSK must not create patient organisations, must not be the sole funding sponsor of a patient organisation, and should not provide more than 25 per cent funding to patient organisations. Exceptions may be allowed in the case of rare disease focus or start-up funding up to 50 per cent. However, must be agreed with directly with the local country or region general manager or head of regional government affairsGSK must not seek a direct return on investment from the funding of a patient organisationAny information on GSK pipeline compounds must be factual and non-promotional and provided to patient organisations as part of a scientific dialogueIt is acceptable for GSK clinical trials or medical personnel to work with patient organisations to ensure optimal clinical trial recruitment, and to consult them on clinical trial design and protocolsGSK must not directly sponsor patient organisation representatives to attend medical congresses, conferences and other healthcare professional events. Exceptions include where the representative is invited to speak at the conference or where the medical congress has a specific workstream designed for patients. GSK may sponsor representatives to attend non-medical congressesGSK may pay a modest honorarium or speaker fee to the patient organisation that an advisory board member or speaker representsAny third party working for GSK on a given project must be fully transparent about this relationship when interacting with a patient group on the project

Back to top

Home Responsibility Public policy and patient advocacy Patient advocacy Transparency

Page 314 of 336




Corporate Responsibility Report 2008Understanding patientsTo help us better understand patient needs we have set up advisory boards in the US and Europe that include representatives from a wide range of patient groups.

The advisory boards have independent chairs, meet regularly and are attended by senior GSK managers. The boards enable the voice of patients to be heard at the highest levels of GSK. They also allow us to access the views of patient groups and we seek feedback on subjects such as clinical trials, pharmacogenetics, information provided to patients and ethical issues.

In all regions we invite speakers from patient groups to meet GSK employees, including scientists, researchers and marketers, to discuss issues affecting their members. As well as improving our understanding of patient needs, it shows GSK employees the difference their work can make to people �slives. Read about how our Focus on the Patient initiative is helping us to better understand patient needs and develop better medicines.

We also engage with patient groups through Patient Advocacy Leaders� Summits (PALS). These bring groups together to discuss health policy concerns, develop new skills and/or ways to expand their influence. PALS can also give patient groups the opportunity to learn about GSK and tell the company how it can better support their work. In 2008 we were involved in running a total of 33 summits: 14 in nine European countries, one in Japan and 18 throughout the US.

Discussions at the 2008 PALS focused on a broad range of issues, including:

Efforts to establish patient-centred healthcare (Japan)

Availability of medicines and the role of patients and patient organisations (Netherlands)

Clinical trials (Germany)

Healthcare as a political priority and healthcare funding impacts on patients (Estonia)

Healthcare system reform and patient rights (Czech Republic)

Healthcare financing and patient access to healthcare in an economic downturn (Latvia)

Patient input to the national strategy for cancer (Bulgaria)

Communications strategies for patient associations (France)

Importance of innovation, intervention and prevention in health care reform (US)

In 2008, GSK co-sponsored the European Patient Forum �s annual conference in Brussels with the pharmaceutical company Pfizer. This brought together approximately 100 patient groups and other stakeholders to exchange ideas about improving healthcare and the role of patient organisations.

We intend to hold a further 20 PALS summits in the US in 2009 and in Europe we will support a similar number of PALS as in 2008. We also plan to have several regional PALS meetings in our Asia Pacific and Emerging Markets regions.

Home Responsibility Public policy and patient advocacy Patient advocacyUnderstanding patients

Back to top�

Page 315 of 336




Corporate Responsibility Report 2008Developing industry standardsWe are taking a leadership approach in developing industry standards for engaging with patient groups.

In the US, we are working with the industry trade group PhRMA to develop guidelines for its members on working with patient groups which will be launched in May 2009. We also helped the National Health Council to develop guidelines for patient groups to follow when working with companies. Patient group members of the Council are required to follow the guidelines, which were launched in 2008.

Update August 2009

Since the publication of this report, our work with PhRMA to develop guidelines on working with patient groups has stopped. All companies did not agree on the need to develop industry wide guidelines, however PhRMA supports the National Health Council guidelines for patient groups when working with companies. GSK remains committed to developing industry standards for engaging with patient groups.

In Europe, we were closely involved in the development of the first EFPIA code of practice on relationships with patient organisations, which came into effect in July 2008. The code bears a close resemblance to GSK �s policies on working with patient groups, and a senior GSK manager chaired the EFPIA Patient Relations Network that originally developed the code.

The EFPIA code contains many of the requirements of GSK �s policies. It states that companies cannot promote their medicines to patient groups, there must be written agreements in place for all interactions with patient groups, and companies must list all patient groups they work with and describe the nature of any support.

We have been involved in training other companies to prepare to implement the code at the European level and locally in countries including Finland and Germany.

Home Responsibility Public policy and patient advocacy Patient advocacyDeveloping industry standards

Back to top

Page 316 of 336




Corporate Responsibility Report 2008Advocacy activity in 2008Here we describe some of the advocacy activities we undertook in 2008 in partnership with patient groups.

Global recruitment for lung cancer vaccine clinical trialWe partner with the Global Lung Cancer Coalition (GLCC), a body comprising 23 not-for-profit groups from around the world, that promotes understanding about lung cancer and advocates for patients � right to early detection, better treatment and supportive care. GLCC members are also committed to campaigning for more lung cancer research and an increase in enrolment of patients into clinical trials. As with many other new therapy trials, the GLCC network helped us in the recruitment of patients for the phase lll clinical trial of our therapeutic lung cancer vaccine. We raised awareness about the trial through GLCC members who disseminated information to lung cancer patients, calling for those who had recently undergone surgery to ask their doctors about entering the study. We hope that the vaccine, to be given to lung cancer patients after surgery, could help stop tumours returning and reduce the effect of the disease.

Chronic hepatitis B in Asia PacificIn 2008 we continued our campaign in Asia Pacific to raise awareness about chronic hepatitis B, increase the number of people being tested and diagnosed, and improve compliance with antiviral medication. Around 300 million people in the region live with the disease. GSK and a patient consortium developed a patient engagement programme and created resources to support healthcare professionals and encourage patients to adhere to their treatment regimes, including an SMS service that reminds patients about how to manage their condition. We piloted the programme and resources in Korea in 2008, and will roll them out across ten more countries by World Hepatitis Day in May 2009.

Raising awareness about breast cancer treatment times in CanadaThrough our partnership with the Canadian Breast Cancer Network (CBCN), GSK helped raise awareness about unacceptable treatment waiting times and differences in access to breast cancer care across Canada �s provinces. In 2008, the CBCN published a report that revealed waiting times of up to five years from the initial application by the manufacturer until patients could access a new breast cancer drug. The report provoked extensive national media coverage and a strong call to action for policy makers, politicians, concerned organisations and individuals to work together to address these issues.

Home Responsibility Public policy and patient advocacy Patient advocacy Advocacy in 2008

Back to top�

Page 317 of 336




Corporate Responsibility Report 2008Q&AsHow do you make sure that your lobbying activity doesn�t contradict or undermine your corporate responsibility work?Corporate responsibility is central to our business. We aim to ensure that all our lobbying activity reflects the values set out in this report as well as being sensitive to the views of our stakeholders. Employees involved in public policy must abide by our Employee Guide to Business Conduct which commits them to acting with honesty and integrity.

We have well-established public policy positions. These are developed through wide consultation and are approved by our Corporate Executive Team. Employees who lobby for GSK are closely involved in developing these positions. We believe transparency is key to building trust with our stakeholders and we disclose our public policy positions on our website.

Does GSK make political contributions through so-called �527� organisations?Yes, we support a number of �527� organisations such as the New Democratic Network. GSK has no influence over how �527� organisations use GSK contributions; however, our support enables the organisations to develop and advocate policy positions and us to participate in their functions and to debate and discuss important issues for GSK with other organisations, the public and policy makers.

Contributions to �527� organisations are not defined as political contributions and so are not subject to our policy to stop all corporate political contributions.

Isn�t your support for patient groups just another marketing tool?No. GSK neither promotes medicines to patient groups nor would ever ask a patient group to endorse a GSK medicine. We work with patient groups in a number of areas, including improving how clinical trials are run, disease awareness initiatives, and on the bigger agenda of ensuring that all new medicines are made available to patients.

When GSK provides funding, are you trying to �buy� favours from the patient organisation?No. We never ask for endorsement of any of our medicines or a return on investment for our support. We are careful that our support for an organisation does not compromise its independence and is based on trust and mutual respect, and complies with the highest standards of our code of conduct.

How do these groups maintain their independence if they receive significant funding from companies such as GSK?We encourage patient groups to diversify their funding from sources in both the public and the private sector. Patient groups should never become dependent on any one funder from either sector. Our guidelines state that we should provide no more than 25 per cent of a group �s overall income, except in exceptional

Home Responsibility Public policy and patient advocacy Q&As

Page 318 of 336




Corporate Responsibility Report 2008Our work with communitiesWe donate money, time, medicines and equipment to support communities around the world.

Our programmes are long term and focus on addressing healthcare challenges and increasing access to medicines. We also invest in improving education, especially science education, and provide some support for art and environment initiatives.

We believe contributing some of our profits to benefit communities is part of being a responsible company. Community investment also brings us long-term business benefits by improving our reputation, boosting employee morale and helping us build good relations with governments. We do not use community investment as a way of generating sales.

We invest in innovative projects to:

prevent disease

build the capacity of community organisations

promote education, particularly in science

We focus our community investment on areas relevant to our business and the skills of our people. This is where we can bring the most benefit to communities and GSK.

Most of our investment is made through non-profit organisations that are experts in healthcare and education. These organisations are best placed to understand local community needs and to target resources effectively. Donations are made at a company level and by individual sites.

HealthcareWe support major public health initiatives in the developing world. For example:

We are a founding member of the Global Alliance to Eliminate Lymphatic Filariasis (GAELF). We have committed to donating as many albendazole tablets as are needed to eliminate lymphatic filariasis (elephantiasis), a disabling parasitic disease that threatens 1.3 billion people � one-fifth of the world�spopulation - in over 80 countries

Our Positive Action programme works with communities to reduce stigma and improve capacity for HIV prevention and treatment

Our African Malaria Partnership supports Mobilising for Malaria, an advocacy initiative to generate political commitment and funding to combat malaria

PHASE � Personal Hygiene And Sanitation Education � is our hand-washing programme for children to prevent diarrhoea-related disease and improve school attendance

We donate essential antibiotics and other medicines for disaster relief to under-served communities around the world, while specific programmes support low-income, uninsured patients in the US

EducationWe support education programmes [link to Supporting science education] in the UK and the US to inspire young people about science, improve their understanding of science and encourage them to pursue a science-related career. Our programmes enable young people to make informed decisions about the

Home Responsibility Our work with communities

Page 319 of 336




science-related issues they meet in everyday life such as healthy eating, vaccinations and the value of medicines.

Measuring impactWe ask our partner organisations for our larger programmes to report annually on the progress of the projects supported by GSK to ensure that the money we give has the greatest possible impact. We review results with our partners and identify any changes required to achieve the programmes � objectives.

Page 320 of 336




Corporate Responsibility Report 2008Community investmentIn 2008, our global community investment was �124 million ($229 million) compared with (restated) �109($219 million) in 2007, an increase of 13 per cent. Just over half of this comprises product donations and this is the first year we have valued donations using cost (average cost of goods) rather than the wholesale acquisition price (WAC).

Our new approach to valuing donations is a more accurate reflection of the true cost to GSK and is therefore more transparent. We believe we are the first pharmaceutical company to adopt this practice. We will continue to also report the WAC value of our donations for benchmarking purposes.

We belong to the UK�s London Benchmarking Group (LBG) and the US Committee Encouraging Corporate Philanthropy (CECP). LBG guidelines report product donations at cost, whereas CECP guidelines report product donations at market value. For comparative purposes the total value of giving in 2008 using WAC for products would be �343 million ($634 million) compared with �282 million ($564 million) in 2007.

The giving figure is built up in the following way:

Method of giving (��million)

Breakdown of cash giving (%)

Our product donations are made through three main programmes:

Home Responsibility Our work with communities Community investment

Page 321 of 336




Our Patient Assistance Programmes to support low-income patients in the US, totalling �56 million (at cost) in�$%%&�

Humanitarian product donations to under-served communities in 118 countries, including people affected by the natural disasters in Burma and China, totalling �5m (at cost) in 2008

Donation of 266 million albendazole tablets for the lymphatic filariasis (LF) elimination programme. In 2008 we announced we would double our manufacturing capacity for albendazole tablets to 600 million tablets per year by 2010 from the current 300 million, to meet the growth of the LF programme, especially in India. As a result, our donations of albendazole tablets will increase significantly from 2009 onwards

We already publish data about our charitable grants made to patient groups in our European, Emerging Markets and Asia Pacific regions. We are further increasing transparency by publishing details of all our charitable grants over �10,000 ($20,000). Find out more about our grants.

GSK was one of 21 companies and the only manufacturing company to be awarded the new CommunityMark, following independent assessment, for outstanding community investment. The Mark, created by Business in the Community, is endorsed by the UK government and voluntary sector leaders. It was given for our work at local and national level in the UK as well as for our larger international programmes.

Page 322 of 336




Corporate Responsibility Report 2008Preventing diseaseInfectious diseases kill millions of people in the developing world each year.

They cause misery, cost billions of dollars and slow economic growth. Preventing infection is more effective than treatment and can have significant social and economic benefits.

Our vaccines play a significant role in preventing disease.

GSK supports innovative community approaches to disease prevention that are tailored to local settings and needs. 2008 marked two significant milestones in our support for community disease prevention; it is ten years since we made a commitment to eliminate lymphatic filariasis (LF) worldwide and since we launched our hand-washing programme PHASE, to prevent diarrhoea-related disease.

We also support a wide range of local programmes to help prevent disease in the communities where we operate.

Home Responsibility Our work with communities Preventing disease

Page 323 of 336




Corporate Responsibility Report 2008Eliminating lymphatic filariasis (LF)We have committed to donating as many tablets of albendazole, our anti-parasitic drug, as are needed to eliminate LF.

LF is a disfiguring disease prevalent in tropical and sub-tropical countries. Transmitted by mosquitoes, it can lead to severe swelling of the arms, legs, breasts and genitals and thickening of the skin. LF is one of the world �s leading causes of permanent disability, with 1.3 billion people in over 80 countries (approximately one-fifth of the world�s population) at risk of infection.

In 2008, GSK donated 266 million albendazole treatments to 30 countries. This included 130 million tablets to India, the country with the largest LF burden. The economic cost of LF in India is estimated to exceed US$840 million due to treatment costs and reduced working time.

Since the programme began we have donated over one billion tablets and over 180 million people have been treated at least once with albendazole. We estimate that to the end of 2007 66 million babies born in the treated regions have been spared the risk of contracting LF. A study published in the journal Public Library of Science on Neglected Tropical Diseases confirmed the progress already made towards eliminating LF.

This year we decided to double our annual manufacturing capacity for albendazole tablets to 600 million tablets per year by 2010 by opening of a new production line in Nashik, western India.

An additional benefit of the albendazole tablets given for the LF programme is that they also treat intestinal worms. These parasites particularly affect children, causing anaemia and malnutrition, and stunting growth. We estimate that since the beginning of the LF programme, over 170 million albendazole treatments have been administered to children and over 140 million to women of child-bearing age. This will have had a positive impact on the overall health of those infected with intestinal worms.

Each country aiming to eliminate LF must treat all at-risk people once a year for at least five years. So far, Egypt, several Pacific Island countries, Sri Lanka and Zanzibar have completed five annual mass drug administrations (MDAs). These countries are monitoring their populations to evaluate the impact of the programme on the disease. Assessments conducted in Egypt and Vanuatu, a Pacific Island nation, showed that LF has been eliminated in most areas of these countries.

Programmes in Tanzania, Madagascar and Burkina Faso have also reported an unexpected benefit of the MDAs, beyond reducing infection rates. In these countries, some patients already infected with LF are describing an alleviation of symptoms after the MDAs, including reduced leg swelling and a reduction in frequency and length of acute attacks (spells of feverishness and loss of energy). Acute attacks are the most incapacitating symptom of LF.

Read more about our approach to LF and the patients who are living with the disease.

Home Responsibility Our work with communities Preventing diseaseEliminating lymphatic filariasis

Page 324 of 336




Corporate Responsibility Report 2008Personal Hygiene And Sanitation Education (PHASE)Every year more than two million people die of diarrhoea-related disease, mostly children in developing countries. These deaths can often be easily prevented through better hand-washing and sanitation.

PHASE is a school-based programme that helps to reduce diarrhoea-related disease by encouraging school children to wash their hands. We established PHASE in 1998 and since then we have invested over �4million ($7 million) in the programme.

PHASE is run in partnership with AMREF, Save the Children and Earth Institute at Columbia University, as well as Ministries of Health and Education in the countries where the programme operates.

The programme has had impressive results. In Bangladesh, for example, in partnership with Save the Children, we introduced PHASE to 127 schools in one of the country �s poorest areas, where it is helping to improve the lives of 20,000 young children and their families. In the three-year period of the programme�sfunding:

Schools with hand-washing facilities increased from 5 per cent to 97 per cent, leading to an increase in hand washing with soap by schoolchildren from 40 per cent to 75 per centMore latrines were made available in schools and a further 1,200 latrines constructed in children �s homes, resulting in a marked decrease in open defecation from 75 per cent of the population to 13 per centWith healthier children, school attendance rates increased from 53 per cent to 80 per cent over the period 2006 to July 2008

The success of PHASE in Nasirnagar (Bangladesh) led to the decision to expand the programme to include all 950 schools in the Brahmanbaria district. Save the Children is now working with health and education ministers to prepare them for the scale-up.

In 2008, we committed funding of �320,000 over three years to extend the programme into the slum areas of Mumbai in India with our partner Pratham. PHASE now operates in 13 countries and has reached over 500,000 children. Our aim is for the programme to reach over one million children by next year.

Supporting the Millennium Development GoalsIn 2000 world leaders agreed the Millennium Development Goals (MDGs) to meet the needs of the world �spoorest people. The MDGs include targets to halve extreme poverty and hunger by 2015, and improve education, health, gender equality and environmental sustainability.

We have introduced PHASE to two Millennium Villages in Malawi and Senegal. Millennium Villages are research projects in African communities designed to find practical ways to meet the MDGs

Global Hand-Washing DayThe first Global Hand-Washing Day was held during 2008. This was marked by a week of activities encouraging millions of children and adults around the world to wash their hands, with the aim of improving hygiene and health. PHASE partners arranged a range of activities to promote hand-washing which reached around 300,000 people.

Read more about PHASE and the Global Hand-Washing Day.

Home Responsibility Our work with communities Preventing diseasePersonal Hygiene and Sanitation Education

Page 325 of 336




Corporate Responsibility Report 2008Local programmesWe support a wide range of programmes to help prevent disease in the communities where we operate. We fund these programmes at corporate and local levels. Below are just a few local programme examples.

Australia - helping Aborigines tackle diabetes

Indigenous Australians have poorer heath and a life expectancy of about 20 years less than the rest of the Australian population. This is due to the rapid increase in so-called �lifestyle� diseases, including type 2 diabetes, and could wipe out indigenous populations in 20 years.

GSK is working with the Unity of First People of Australia in the far north of Western Australia on their Diabetes Management and Care Program. The programme aims to arrest the rising incidence of diabetes in Aboriginal communities by encouraging the local people to take on the responsibility for their community �shealth, because health providers can only do so much without their active support.

UK � improving sexual health services for disabled people

We have donated over �520,000 over three years to Leonard Cheshire Disability to fund a project to give young disabled people better access to sexual health services. The project addresses knowledge and understanding gaps relating to disabled people �s sexual health issues. Over the three-year period, the organisation will run focus groups and workshops to identify key issues and will develop a range of materials to support sexual health workers who deal with disabled people.

UK - promoting sport for children

Through our Consumer Healthcare business we support Access Sport, an organisation that encourages young people in the UK to keep fit and participate in sport. In 2008, Access Sport held three �Sports Jam �events, in Bristol, Bath and London, where more than 3,500 children took part in sporting activities. We provided funding and our employees volunteered their time and held fundraising events. For example, 90 employees raised money by cycling from Land�s End to John O �Groats. In future GSK staff will also support Access Sport by volunteering at their local sports clubs during our annual employee volunteering day.

Preventing childhood obesity in the US

In the US we support the Zone Health initiative which helps schools strengthen their policies and programmes on nutrition and physical activity. It aims to improve the health of more than 200,000 children by 2010. Following a successful pilot, Zone Health is being expanded and GSK has announced support for the FitU programme in the Washington DC area, which will benefit more than 600 young people over three years.

Home Responsibility Our work with communities Preventing disease Local programmes

Page 326 of 336




Corporate Responsibility Report 2008Building community capacityLack of healthcare infrastructure � including clinics and trained healthcare professionals � andcultural attitudes are significant barriers to treatment in many developing countries.

Our global programmes such as Positive Action is working with communities affected by HIV and AIDS, and our African Malaria Partnership is improving prevention and access to malaria treatment.

We support local initiatives that help overcome stigma, build the capacity of communities to provide healthcare and combat disease.

We also provide humanitarian relief in times of emergency and natural disasters.

Home Responsibility Our work with communities Building community capacity

Page 327 of 336




Corporate Responsibility Report 2008Combating HIV/AIDS - Positive Action Positive Action works with community organisations to build capacity to counter the ignorance and stigma surrounding HIV through outreach, education and advocacy. Since it was established in 1992, it has provided over $70 million, funding projects in 63 countries across Africa, Asia, Latin America and Eastern Europe.

Through Positive Action, GSK has pioneered support for vulnerable communities, including men who have sex with men, intravenous drug users, sex workers, migrants, young people, orphans and vulnerable children and marginilised poor rural women - groups who have limited human rights or public voice and are thus excluded from playing a role in developing mainstream programming. It is essential to work with these groups if we expect to make a difference to this epidemic.

During 2008, we supported 18 Positive Action programmes in 21 countries. Key projects include:

Fighting stigma and discrimination in Mexico among vulnerable sectors of the populationBringing HIV education to vulnerable women in India through self-help groupsHelping communities in Asia understand and prepare for treatment programmesImproving access to treatment in Kenya by promoting greater understanding and involvement of communities

Update August 2009

In July 2009 we announced the creation of a new Positive Action for Children Fund. The Fund will make �50 million ($80 million) available over ten years to help prevent mother-to-child transmission of HIV and to support orphans and vulnerable children.

Positive Action programmes involve grass roots organisations that are able to continue to support their communities after the projects have come to an end.

This year we were the principal sponsor of the Global Village (the community space) at the International AIDS2008 conference held in Mexico City. We also hosted community forums to allow delegates to share experience of their fight against HIV/AIDS.

Read more about Positive Action.

Home Responsibility Our work with communities Building community capacityCombating HIV/AIDS � Positive Action

Page 328 of 336




Corporate Responsibility Report 2008Combating malaria � Africa Malaria Partnership Every year up to 500 million people are affected by malaria and over one million die from it, mostly young children in Africa. But the disease can be prevented by controlling the breeding of mosquitoes and using low-cost measures such as insecticide-treated nets. Malaria can be cured if treated promptly with effective medicines.

We established the African Malaria Partnership in 2001 to improve the prevention and access to treatment of malaria in sub-Saharan Africa. Since then we have invested over $3 million in initiatives to combat the disease.

2008 was the final year of our three-year grant to support Mobilising for Malaria, an advocacy initiative to generate greater awareness, political commitment and sustained funding for malaria in Europe and Africa. National Coalitions Against Malaria have now been launched in the UK, Belgium, France, Ethiopia and Cameroon bringing together advocates and activists from the public sector, NGOs, the media, the private sector and the political, academic and scientific communities.

Part of this initiative was the award of innovation grants to civil society organisations in Africa to boost advocacy efforts and inspire African civil society organisations and media to become leaders in the fight against malaria in their own countries. Grants were awarded to civil organisations in Nigeria, Tanzania, Ghana, Mozambique, Democratic Republic of Congo and Burkina Faso.

We supported a journalist competition run by the Guardian, a British newspaper, to raise awareness of issues faced by people with malaria and LF. Their global web site attracted 20,000 unique visitors and the winning stories were published in two dedicated supplements.

Read more about our malaria programmes.

Home Responsibility Our work with communities Building community capacityCombating malaria � Africa Malaria Partnership

Page 329 of 336




Corporate Responsibility Report 2008Local programmesWe support a wide range of programmes to build healthcare capacity in the communities where we operate. We fund these programmes at corporate and local levels. Below are just a few local programme examples.

Training midwives in Vietnam We support a project to train birth attendants to bring maternal healthcare services to rural villages in Vietnam. The project aims to reduce childbirth complications and decrease newborn fatality from the unacceptably high level of 6 per cent. The trainees are housed in a residential training centre built by GSK at Tu Du Hospital, Ho Chi Minh City. Supported by hospital staff, they spend four months gaining practicalknowledge of maternal and child healthcare.

During the first phase of the project, between 2004 and 2007, over 520 midwives � representing 38 of Vietnam �s 54 ethnic groups � have graduated with a government-recognised qualification. The midwives return to their villages equipped with a medical pack. Some are also provided with a motor scooter to assist access to remote areas.

Phase two of the project was launched in 2008. This involves hospital staff visiting villages to provide additional training to the midwives and to provide basic pregnancy and reproductive health education for community members.

Palliative care for children in RomaniaOver the last three years we have been working in partnership with the Hospice Casa Sperentei in Romania on the �Beacon of Hope� project to improve the level of care available to terminally ill children in the Balkans.Huge progress has been achieved, helping to change attitudes towards dying patients in the region.

The project has received acclaim from the Romanian government, which began a partnership with the hospice in 2007 with a view to creating a national plan for palliative care. Key achievements include the establishment of a children �s palliative care unit in Brasov, a mobile nursing team and a network of care "+� ��+��+��+,��1� project has developed a regional centre of excellence for the whole ofsouth-eastern Europe that provides palliative care training for health workers and volunteers. As a result, children �s palliative care services have been set up in neighbouring Moldova.

New fund for Children�s Hospital of PhiladelphiaIn October 2008 we announced a $1 million donation to the Children�s Hospital of Philadelphia to help young people with cancer in the US. The hospital runs one of the world�s largest paediatric cancer programmes. Our contribution, together with a matched donation from the hospital, will form the GlaxoSmithKline Hope for Families Fund. The Fund is a permanent endowment to enable children and young adults suffering from relapsed and hard-to-cure cancers access to innovative therapies. It will help cover the travel and accommodation costs of patients and their families, who often must stay at or near the hospital for extended periods.

Healthcare for the homeless in PittsburghGSK supports Pittsburgh Mercy Foundation �s Operation Safety Net �Street Medicine � outreach programmethat enables Pittsburgh�s homeless to access free healthcare. The programme includes a mobile medical unit, a drop-in clinic and teams of clinicians and care workers who walk the streets offering medical examinations and treatment to homeless people.

Rewarding community healthcare organisation in the UK

Home Responsibility Our work with communities Building community capacityLocal programmes

Page 330 of 336




Each year the GSK IMPACT Awards recognise voluntary organisations that have significantly improved the health of their local communities. Ten winning charities receive �25,000 each and the overall winner is awarded an extra �10,000.

In 2008 the UK Impact Awards programme introduced an initiative for the managers of the winningorganisations to be trained in leadership, networking and fundraising skills. This will help strengthen small charities that are often unable to afford this vital skills training.

The GSK IMPACT Awards also run in Philadelphia in the US.

Read more about the GSK IMPACT Awards and the winning organisations.

Page 331 of 336




Corporate Responsibility Report 2008Responding to disasters around the worldGSK provides humanitarian assistance in the form of cash and product donations in times of emergency and natural disasters. In 2008, as part of our ongoing programme, we provided humanitarian relief to many areas, including China, Burma and Zimbabwe.

Following the cyclone in Burma we worked with AmeriCares, one of our partners specialising in rapid-response delivery, to supply GSK-donated medicines. We also made a donation of �50,000 ($93,000) to Save the Children, a charity that has an established presence in Burma. Our contribution supported recovery efforts, including the provision of shelter, child protection, food and nutrition and emergency health services for over 100,000 children and their families.

The earthquake which hit Sichuan Province in China in May left over 70,000 dead and 15 million people displaced or homeless. GSK Hong Kong/China gave a cash donation of 10 million Yuan, approximately $1.4 million, to the China Red Cross, and donated supplies of basic medicines.

We provided funds to the British Red Cross for a Mass Sanitation Module to provide emergency sanitation facilities and hygiene education for up to 20,000 people during times of crisis. This helps to avoid outbreaks of disease and was deployed in December 2008 in Zimbabwe to help stem the cholera outbreak.

We continued our support for communities affected by the 2004 Indian Ocean tsunami, which caused huge damage to coastal areas across South Asia:

In Sri Lanka, we are helping to establish mobile clinics that increase access to quality healthcare for isolated communities affected by the tsunami and conflict in the country. In 2008, 47 mobile clinics were set up in 13 different locations, providing the only reliable healthcare services in these areas. The clinics treated nearly 10,500 patients and in total gave healthcare education messages to 12,000 patients and the people accompanying themWe are working with Leonard Cheshire Disability to create an inclusive, barrier-free and rights-basedsociety for people with disabilities who were affected by the 2004 tsunami in Galle, Sri Lanka. A new resource centre will be established to support people with disabilities by providing rehabilitation services, mainstream education and livelihood opportunities.We support long-term relief efforts in affected areas of Chennai, India, by providing nursing training to young women from poor villages. As well boosting healthcare services in the area, the training enables the women to support themselves financially by becoming nursing assistants. Between 2007 and 2009 420 women will be trained.In Thailand we are helping to boost the economies of six coastal villages where the local fishing industry was destroyed by the tsunami. With the Raks Thai Foundation we support initiatives that provide business loans and organise youth activities and efforts to improve the local environment. We also gave funding to help NGO Francois Xavier Bagnoud (FXB) to introduce the concept of a �model village�. This is a low-cost,sustainable, community-based programme that has been successful in helping families to achieve self-sufficiency

Home Responsibility Our work with communities Building community capacityResponding to disasters around the world

Back to top�

Page 332 of 336




Corporate Responsibility Report 2008Supporting science educationIn the UK and US, the numbers of young people choosing science subjects is falling and many students lack proficiency in either reading or mathematics.

As a result, both countries face a significant skills shortage.

The success of our business relies on us being able to recruit talented individuals, particularly those with science qualifications. We also want young people to make sound decisions about the science-relatedissues they meet in everyday life.

Our education programmes help make science more relevant to young people in the UK and US, stimulating their interest in science, and supports the training and development of science teachers.

UKProject ENTHUSEHalf of secondary school science teachers in the UK have had no subject training within the past five years. Project ENTHUSE was launched in 2008 to improve continuing professional development of scienceteachers and to provide them with the latest techniques to rekindle interest in science.

Teachers, assistants and technicians can apply for an ENTHUSE Award to help them study at the National Science Learning Centre at the University of York. The award will cover course fees, the cost of covering teachers � roles while they are on the course, and travel and accommodation for 2,200 teachers each year. The schools will also receive a small amount of money to help implement ideas back in the classroom.

We have committed �1 million to this initiative helping to create a �30 million fund with support from the UK government, the Wellcome Trust and eight other industry partners.

CREST Star InvestigatorsAfter-school clubs help broaden the interests and experiences of young people, but these often focus on sports or arts rather than science. CREST Star Investigators, developed by the British Association for the Advancement of Science and funded by GSK, aims to redress this balance and engage 5 to 12 year olds in science-based activities.

The UK-wide programme offers activity packs to schools and other organisations such as the Brownies and Cubs for use in after-school clubs. The activities encourage children to solve scientific problems through exciting practical investigations. The pack contains activities at three different difficulty levels, and children are awarded a certificate when they complete each stage.

So far almost 3,000 packs have been distributed to nearly 1,500 schools. By 2010, we aim to have 5,000 schools and 55,000 children taking part.

USInstitute for a Competitive Workforce (ICW)Building on GSK�s leadership at state and local levels related to reform and improvement of public schools, GSK led the effort to create the ICW on a national level. The result has been a national movement for business/education partnerships focused on improved academic achievement in our public school system in order to help ensure a qualified workforce for American businesses in the future.

Science in the SummerWe support Science in the Summer, a free education programme designed to get young people in

Home Responsibility Our work with communities Supporting science education

Page 333 of 336




Pittsburgh, Pennsylvania, Greater Philadelphia and North Carolina interested in science. Classes held inlocal libraries give children the chance to take part in hands-on experiments and take courses ranging from genetics to oceanography. The programme began in 1986, and in 2008 GSK invested $575,000 across 162 sites where over 6,000 children participated in the programme.

North Carolina New Schools Project GSK partners with the North Carolina New Schools Project, an initiative that aims to transform teaching and learning so that high school students graduate ready for college and the workplace. GSK is helping to fund the development of science and technology programmes at ten of North Carolina �s low-performing high schools. The initiative aims to improve the schools� test results and graduation rates. GSK also funds a review of state curricula so that the benefits are shared more widely.

Page 334 of 336




Corporate Responsibility Report 2008Our plansVolunteeringFrom 2009, we will expand our volunteering programme so that every GSK employee can spend at least one day a year helping in their community. Employees will select local organisations to support and will undertake a variety of work for them, ranging from manual jobs to fund-raising. This will include supporting employees that wish to visit schools to encourage science education.

We will also be launching an international assignment programme to enable a select number of employees to use their professional skills to support our non-profit partners for extended periods.

Positive Action We have agreed to extend three of our larger HIV programmes (Zingatia Maisha in Kenya, Vida Digna in Mexico and Reach India) for an additional year to ensure their sustainability.

We will be working with the Ubuntu Education Fund in South Africa to expand a programme called �LivingPositively �. This programme will work with men and older boys in Port Elizabeth township to challenge gender roles that exacerbate HIV infection and exclude men from HIV services.

We will be working with AIDS Action Europe to provide networking for HIV/AIDS NGOs across Eastern Europe and Central Asia for improved HIV policy, advocacy and programming and support for those facing the HIV crisis.

We will be working with the American Foundation for AIDS Research (amfAR) to expand its initiative to provide prevention, care and support services for men who have sex with men in Asia Pacific. We will also work with AIDS patient groups in the Philippines to increase members understanding of health issues.

PHASEOur partner Pratham will be implementing the PHASE programme in the slum areas of Mumbai, India. We will also extend PHASE to new districts in Uganda and advocate for the incorporation of PHASE into national policy, enabling sustainability and replication of the project nationwide.

LFWe are increasing our manufacturing capacity for albendazole tablets to 600 million tablets per year by 2010. This will enable us to increase fourfold the number of tablets we donated in 2007.

USWe are continuing to provide leadership and support to the Children �s Health Fund (CHF) Referral Management Initiative to increase access to specialist healthcare for homeless and uninsured American families. We are also supporting a pilot telemedicine project to help patients access specialist care. CHF�snew Memphis Regional Children �s Health Project will serve as the pilot site to link approximately 400 rural patients with specialists at Memphis hospital, using state-of-the-art videoconferencing technology.

Europe, Emerging Markets and Asia Pacific regionsSeveral new programmes are being implemented. For example

In Greece we are helping to introduce the concept of home-based nursing services for children living with cancer

Home Responsibility Our work with communities Our plans

Page 335 of 336




In the Netherlands, we are supporting a national programme to promote healthy behaviours among young people, helping them to make informed decisions about what they eat and to encourage regular physical activity

We will also seek new partnerships to improve community healthcare through social venture and enterprise projects

Preparing for when the funding stops

Most of our programmes run over a number of years, recognising that it takes time to build change. But from the start we plan for what will happen at the end of our funding.

We work hard with community organisations to bring results over the life of a project (usually around three years) and to help organisations win funding from other sources to continue their work.

From the start we require our partners to work to a budget to make sure funding is spent effectively and produces the right results. We also ask our partners to demonstrate achievements by producing an annual progress report. These reports show evidence of success and are a crucial part of attracting new donors.

Page 336 of 336




Get Email Updates Contact Us

Home��Briefing Room��

THE WHITE HOUSEOffice of the Press Secretary

_________________________________________________________________________For Immediate Release September 9, 2009

REMARKS BY THE PRESIDENTTO A JOINT SESSION OF CONGRESS

ON HEALTH CAREU.S. Capitol

Washington, D.C.

8:16 P.M. EDT

THE PRESIDENT: Madam Speaker, Vice President Biden, members of Congress, and the American people:

When I spoke here last winter, this nation was facing the worst economic crisis since the Great Depression. Wewere losing an average of 700,000 jobs per month. Credit was frozen. And our financial system was on the vergeof collapse.

As any American who is still looking for work or a way to pay their bills will tell you, we are by no means out of thewoods. A full and vibrant recovery is still many months away. And I will not let up until those Americans who seekjobs can find them -- (applause) -- until those businesses that seek capital and credit can thrive; until all responsiblehomeowners can stay in their homes. That is our ultimate goal. But thanks to the bold and decisive action we'vetaken since January, I can stand here with confidence and say that we have pulled this economy back from thebrink. (Applause.)

I want to thank the members of this body for your efforts and your support in these last several months, andespecially those who've taken the difficult votes that have put us on a path to recovery. I also want to thank theAmerican people for their patience and resolve during this trying time for our nation.

But we did not come here just to clean up crises. We came here to build a future. (Applause.) So tonight, I returnto speak to all of you about an issue that is central to that future -- and that is the issue of health care.

I am not the first President to take up this cause, but I am determined to be the last. (Applause.) It has now beennearly a century since Theodore Roosevelt first called for health care reform. And ever since, nearly everyPresident and Congress, whether Democrat or Republican, has attempted to meet this challenge in some way. Abill for comprehensive health reform was first introduced by John Dingell Sr. in 1943. Sixty-five years later, his soncontinues to introduce that same bill at the beginning of each session. (Applause.)

Our collective failure to meet this challenge -- year after year, decade after decade -- has led us to the breakingpoint. Everyone understands the extraordinary hardships that are placed on the uninsured, who live every day justone accident or illness away from bankruptcy. These are not primarily people on welfare. These are middle-classAmericans. Some can't get insurance on the job. Others are self-employed, and can't afford it, since buyinginsurance on your own costs you three times as much as the coverage you get from your employer. Many otherAmericans who are willing and able to pay are still denied insurance due to previous illnesses or conditions thatinsurance companies decide are too risky or too expensive to cover.

We are the only democracy -- the only advanced democracy on Earth -- the only wealthy nation -- that allows suchhardship for millions of its people. There are now more than 30 million American citizens who cannot get coverage. In just a two-year period, one in every three Americans goes without health care coverage at some point. And everyday, 14,000 Americans lose their coverage. In other words, it can happen to anyone.

But the problem that plagues the health care system is not just a problem for the uninsured. Those who do haveinsurance have never had less security and stability than they do today. More and more Americans worry that ifyou move, lose your job, or change your job, you'll lose your health insurance too. More and more Americans paytheir premiums, only to discover that their insurance company has dropped their coverage when they get sick, orwon't pay the full cost of care. It happens every day.

Facebook

Twitter

Flickr

MySpace

YouTube

Vimeo

iTunes

LinkedIn

Remarks by the President to a Joint Session of Congress on Health Care | ... http://www.whitehouse.gov/the_press_office/remarks-by-the-president-to...

1 of 7 10/24/2009 4:48 PM

��!��!�� #��+�!�\^�� \��+��` |��|�!�|^�� |��|�|~��| � ��|��|��#�� |��|!��!|��+

Appendix B: President Obama Healthcare Speech


One man from Illinois lost his coverage in the middle of chemotherapy because his insurer found that he hadn'treported gallstones that he didn't even know about. They delayed his treatment, and he died because of it. Anotherwoman from Texas was about to get a double mastectomy when her insurance company canceled her policybecause she forgot to declare a case of acne. By the time she had her insurance reinstated, her breast cancer hadmore than doubled in size. That is heart-breaking, it is wrong, and no one should be treated that way in the UnitedStates of America. (Applause.)

Then there's the problem of rising cost. We spend one and a half times more per person on health care than anyother country, but we aren't any healthier for it. This is one of the reasons that insurance premiums have gone upthree times faster than wages. It's why so many employers -- especially small businesses -- are forcing theiremployees to pay more for insurance, or are dropping their coverage entirely. It's why so many aspiringentrepreneurs cannot afford to open a business in the first place, and why American businesses that competeinternationally -- like our automakers -- are at a huge disadvantage. And it's why those of us with health insuranceare also paying a hidden and growing tax for those without it -- about $1,000 per year that pays for somebody else'semergency room and charitable care.

Finally, our health care system is placing an unsustainable burden on taxpayers. When health care costs grow atthe rate they have, it puts greater pressure on programs like Medicare and Medicaid. If we do nothing to slow theseskyrocketing costs, we will eventually be spending more on Medicare and Medicaid than every other governmentprogram combined. Put simply, our health care problem is our deficit problem. Nothing else even comes close. Nothing else. (Applause.)

Now, these are the facts. Nobody disputes them. We know we must reform this system. The question is how.

There are those on the left who believe that the only way to fix the system is through a single-payer system likeCanada's -- (applause) -- where we would severely restrict the private insurance market and have the governmentprovide coverage for everybody. On the right, there are those who argue that we should end employer-basedsystems and leave individuals to buy health insurance on their own.

I've said -- I have to say that there are arguments to be made for both these approaches. But either one wouldrepresent a radical shift that would disrupt the health care most people currently have. Since health care representsone-sixth of our economy, I believe it makes more sense to build on what works and fix what doesn't, rather than tryto build an entirely new system from scratch. (Applause.) And that is precisely what those of you in Congress havetried to do over the past several months.

During that time, we've seen Washington at its best and at its worst.

We've seen many in this chamber work tirelessly for the better part of this year to offer thoughtful ideas about how toachieve reform. Of the five committees asked to develop bills, four have completed their work, and the SenateFinance Committee announced today that it will move forward next week. That has never happened before. Ouroverall efforts have been supported by an unprecedented coalition of doctors and nurses; hospitals, seniors' groups,and even drug companies -- many of whom opposed reform in the past. And there is agreement in this chamber onabout 80 percent of what needs to be done, putting us closer to the goal of reform than we have ever been.

But what we've also seen in these last months is the same partisan spectacle that only hardens the disdain manyAmericans have towards their own government. Instead of honest debate, we've seen scare tactics. Some havedug into unyielding ideological camps that offer no hope of compromise. Too many have used this as anopportunity to score short-term political points, even if it robs the country of our opportunity to solve a long-termchallenge. And out of this blizzard of charges and counter-charges, confusion has reigned.

Well, the time for bickering is over. The time for games has passed. (Applause.) Now is the season for action. Now is when we must bring the best ideas of both parties together, and show the American people that we can stilldo what we were sent here to do. Now is the time to deliver on health care. Now is the time to deliver on healthcare.

The plan I'm announcing tonight would meet three basic goals. It will provide more security and stability to thosewho have health insurance. It will provide insurance for those who don't. And it will slow the growth of health carecosts for our families, our businesses, and our government. (Applause.) It's a plan that asks everyone to takeresponsibility for meeting this challenge -- not just government, not just insurance companies, but everybodyincluding employers and individuals. And it's a plan that incorporates ideas from senators and congressmen, fromDemocrats and Republicans -- and yes, from some of my opponents in both the primary and general election.

Here are the details that every American needs to know about this plan. First, if you are among the hundreds ofmillions of Americans who already have health insurance through your job, or Medicare, or Medicaid, or the VA,nothing in this plan will require you or your employer to change the coverage or the doctor you have. (Applause.) Let me repeat this: Nothing in our plan requires you to change what you have.

What this plan will do is make the insurance you have work better for you. Under this plan, it will be against the lawfor insurance companies to deny you coverage because of a preexisting condition. (Applause.) As soon as I signthis bill, it will be against the law for insurance companies to drop your coverage when you get sick or water it downwhen you need it the most. (Applause.) They will no longer be able to place some arbitrary cap on the amount of


2 of 7 10/24/2009 4:48 PM

��!��!�� #��+�!�\^�� \��+��` |��|�!�|^�� |��|�|~��| � ��|��|��#�� |��|!��!|��+

Appendix B: President Obama Healthcare Speech (cont.)


coverage you can receive in a given year or in a lifetime. (Applause.) We will place a limit on how much you can becharged for out-of-pocket expenses, because in the United States of America, no one should go broke because theyget sick. (Applause.) And insurance companies will be required to cover, with no extra charge, routine checkupsand preventive care, like mammograms and colonoscopies -- (applause) -- because there's no reason we shouldn'tbe catching diseases like breast cancer and colon cancer before they get worse. That makes sense, it savesmoney, and it saves lives. (Applause.)

Now, that's what Americans who have health insurance can expect from this plan -- more security and morestability.

Now, if you're one of the tens of millions of Americans who don't currently have health insurance, the second part ofthis plan will finally offer you quality, affordable choices. (Applause.) If you lose your job or you change your job,you'll be able to get coverage. If you strike out on your own and start a small business, you'll be able to getcoverage. We'll do this by creating a new insurance exchange -- a marketplace where individuals and smallbusinesses will be able to shop for health insurance at competitive prices. Insurance companies will have anincentive to participate in this exchange because it lets them compete for millions of new customers. As one biggroup, these customers will have greater leverage to bargain with the insurance companies for better prices andquality coverage. This is how large companies and government employees get affordable insurance. It's howeveryone in this Congress gets affordable insurance. And it's time to give every American the same opportunity thatwe give ourselves. (Applause.)

Now, for those individuals and small businesses who still can't afford the lower-priced insurance available in theexchange, we'll provide tax credits, the size of which will be based on your need. And all insurance companies thatwant access to this new marketplace will have to abide by the consumer protections I already mentioned. Thisexchange will take effect in four years, which will give us time to do it right. In the meantime, for those Americanswho can't get insurance today because they have preexisting medical conditions, we will immediately offer low-costcoverage that will protect you against financial ruin if you become seriously ill. (Applause.) This was a good ideawhen Senator John McCain proposed it in the campaign, it's a good idea now, and we should all embrace it. (Applause.)

Now, even if we provide these affordable options, there may be those -- especially the young and the healthy -- whostill want to take the risk and go without coverage. There may still be companies that refuse to do right by theirworkers by giving them coverage. The problem is, such irresponsible behavior costs all the rest of us money. Ifthere are affordable options and people still don't sign up for health insurance, it means we pay for these people'sexpensive emergency room visits. If some businesses don't provide workers health care, it forces the rest of us topick up the tab when their workers get sick, and gives those businesses an unfair advantage over their competitors. And unless everybody does their part, many of the insurance reforms we seek -- especially requiring insurancecompanies to cover preexisting conditions -- just can't be achieved.

And that's why under my plan, individuals will be required to carry basic health insurance -- just as most statesrequire you to carry auto insurance. (Applause.) Likewise -- likewise, businesses will be required to either offertheir workers health care, or chip in to help cover the cost of their workers. There will be a hardship waiver forthose individuals who still can't afford coverage, and 95 percent of all small businesses, because of their size andnarrow profit margin, would be exempt from these requirements. (Applause.) But we can't have large businessesand individuals who can afford coverage game the system by avoiding responsibility to themselves or theiremployees. Improving our health care system only works if everybody does their part.

And while there remain some significant details to be ironed out, I believe -- (laughter) -- I believe a broad consensusexists for the aspects of the plan I just outlined: consumer protections for those with insurance, an exchange thatallows individuals and small businesses to purchase affordable coverage, and a requirement that people who canafford insurance get insurance.

And I have no doubt that these reforms would greatly benefit Americans from all walks of life, as well as theeconomy as a whole. Still, given all the misinformation that's been spread over the past few months, I realize --(applause) -- I realize that many Americans have grown nervous about reform. So tonight I want to address some ofthe key controversies that are still out there.

Some of people's concerns have grown out of bogus claims spread by those whose only agenda is to kill reform atany cost. The best example is the claim made not just by radio and cable talk show hosts, but by prominentpoliticians, that we plan to set up panels of bureaucrats with the power to kill off senior citizens. Now, such a chargewould be laughable if it weren't so cynical and irresponsible. It is a lie, plain and simple. (Applause.)

There are also those who claim that our reform efforts would insure illegal immigrants. This, too, is false. Thereforms -- the reforms I'm proposing would not apply to those who are here illegally.

AUDIENCE MEMBER: You lie! (Boos.)

THE PRESIDENT: It's not true. And one more misunderstanding I want to clear up -- under our plan, no federaldollars will be used to fund abortions, and federal conscience laws will remain in place. (Applause.)

Now, my health care proposal has also been attacked by some who oppose reform as a "government takeover" of


3 of 7 10/24/2009 4:48 PM

��!��!�� #��+�!�\^�� \��+��` |��|�!�|^�� |��|�|~��| � ��|��|��#�� |��|!��!|��+



the entire health care system. As proof, critics point to a provision in our plan that allows the uninsured and smallbusinesses to choose a publicly sponsored insurance option, administered by the government just like Medicaid orMedicare. (Applause.)

So let me set the record straight here. My guiding principle is, and always has been, that consumers do better whenthere is choice and competition. That's how the market works. (Applause.) Unfortunately, in 34 states, 75 percentof the insurance market is controlled by five or fewer companies. In Alabama, almost 90 percent is controlled by justone company. And without competition, the price of insurance goes up and quality goes down. And it makes iteasier for insurance companies to treat their customers badly -- by cherry-picking the healthiest individuals andtrying to drop the sickest, by overcharging small businesses who have no leverage, and by jacking up rates.

Insurance executives don't do this because they're bad people; they do it because it's profitable. As one formerinsurance executive testified before Congress, insurance companies are not only encouraged to find reasons todrop the seriously ill, they are rewarded for it. All of this is in service of meeting what this former executive called"Wall Street's relentless profit expectations."

Now, I have no interest in putting insurance companies out of business. They provide a legitimate service, andemploy a lot of our friends and neighbors. I just want to hold them accountable. (Applause.) And the insurancereforms that I've already mentioned would do just that. But an additional step we can take to keep insurancecompanies honest is by making a not-for-profit public option available in the insurance exchange. (Applause.) Now,let me be clear. Let me be clear. It would only be an option for those who don't have insurance. No one would beforced to choose it, and it would not impact those of you who already have insurance. In fact, based onCongressional Budget Office estimates, we believe that less than 5 percent of Americans would sign up.

Despite all this, the insurance companies and their allies don't like this idea. They argue that these privatecompanies can't fairly compete with the government. And they'd be right if taxpayers were subsidizing this publicinsurance option. But they won't be. I've insisted that like any private insurance company, the public insuranceoption would have to be self-sufficient and rely on the premiums it collects. But by avoiding some of the overheadthat gets eaten up at private companies by profits and excessive administrative costs and executive salaries, it couldprovide a good deal for consumers, and would also keep pressure on private insurers to keep their policiesaffordable and treat their customers better, the same way public colleges and universities provide additional choiceand competition to students without in any way inhibiting a vibrant system of private colleges and universities. (Applause.)

Now, it is -- it's worth noting that a strong majority of Americans still favor a public insurance option of the sort I'veproposed tonight. But its impact shouldn't be exaggerated -- by the left or the right or the media. It is only one partof my plan, and shouldn't be used as a handy excuse for the usual Washington ideological battles. To myprogressive friends, I would remind you that for decades, the driving idea behind reform has been to end insurancecompany abuses and make coverage available for those without it. (Applause.) The public option -- the publicoption is only a means to that end -- and we should remain open to other ideas that accomplish our ultimate goal. And to my Republican friends, I say that rather than making wild claims about a government takeover of health care,we should work together to address any legitimate concerns you may have. (Applause.)

For example -- for example, some have suggested that the public option go into effect only in those markets whereinsurance companies are not providing affordable policies. Others have proposed a co-op or another non-profitentity to administer the plan. These are all constructive ideas worth exploring. But I will not back down on the basicprinciple that if Americans can't find affordable coverage, we will provide you with a choice. (Applause.) And I willmake sure that no government bureaucrat or insurance company bureaucrat gets between you and the care thatyou need. (Applause.)

Finally, let me discuss an issue that is a great concern to me, to members of this chamber, and to the public -- andthat's how we pay for this plan.

And here's what you need to know. First, I will not sign a plan that adds one dime to our deficits -- either now or inthe future. (Applause.) I will not sign it if it adds one dime to the deficit, now or in the future, period. And to provethat I'm serious, there will be a provision in this plan that requires us to come forward with more spending cuts if thesavings we promised don't materialize. (Applause.) Now, part of the reason I faced a trillion-dollar deficit when Iwalked in the door of the White House is because too many initiatives over the last decade were not paid for -- fromthe Iraq war to tax breaks for the wealthy. (Applause.) I will not make that same mistake with health care.

Second, we've estimated that most of this plan can be paid for by finding savings within the existing health caresystem, a system that is currently full of waste and abuse. Right now, too much of the hard-earned savings and taxdollars we spend on health care don't make us any healthier. That's not my judgment -- it's the judgment of medicalprofessionals across this country. And this is also true when it comes to Medicare and Medicaid.

In fact, I want to speak directly to seniors for a moment, because Medicare is another issue that's been subjected todemagoguery and distortion during the course of this debate.

More than four decades ago, this nation stood up for the principle that after a lifetime of hard work, our seniorsshould not be left to struggle with a pile of medical bills in their later years. That's how Medicare was born. And itremains a sacred trust that must be passed down from one generation to the next. (Applause.) And that is why not


4 of 7 10/24/2009 4:48 PM

��!��!�� #��+�!�\^�� \��+��` |��|�!�|^�� |��|�|~��| � ��|��|��#�� |��|!��!|��+



a dollar of the Medicare trust fund will be used to pay for this plan. (Applause.)

The only thing this plan would eliminate is the hundreds of billions of dollars in waste and fraud, as well asunwarranted subsidies in Medicare that go to insurance companies -- subsidies that do everything to pad theirprofits but don't improve the care of seniors. And we will also create an independent commission of doctors andmedical experts charged with identifying more waste in the years ahead. (Applause.)

Now, these steps will ensure that you -- America's seniors -- get the benefits you've been promised. They willensure that Medicare is there for future generations. And we can use some of the savings to fill the gap in coveragethat forces too many seniors to pay thousands of dollars a year out of their own pockets for prescription drugs. (Applause.) That's what this plan will do for you. So don't pay attention to those scary stories about how yourbenefits will be cut, especially since some of the same folks who are spreading these tall tales have fought againstMedicare in the past and just this year supported a budget that would essentially have turned Medicare into aprivatized voucher program. That will not happen on my watch. I will protect Medicare. (Applause.)

Now, because Medicare is such a big part of the health care system, making the program more efficient can helpusher in changes in the way we deliver health care that can reduce costs for everybody. We have long known thatsome places -- like the Intermountain Healthcare in Utah or the Geisinger Health System in rural Pennsylvania --offer high-quality care at costs below average. So the commission can help encourage the adoption of thesecommon-sense best practices by doctors and medical professionals throughout the system -- everything fromreducing hospital infection rates to encouraging better coordination between teams of doctors.

Reducing the waste and inefficiency in Medicare and Medicaid will pay for most of this plan. (Applause.) Now,much of the rest would be paid for with revenues from the very same drug and insurance companies that stand tobenefit from tens of millions of new customers. And this reform will charge insurance companies a fee for their mostexpensive policies, which will encourage them to provide greater value for the money -- an idea which has thesupport of Democratic and Republican experts. And according to these same experts, this modest change couldhelp hold down the cost of health care for all of us in the long run.

Now, finally, many in this chamber -- particularly on the Republican side of the aisle -- have long insisted thatreforming our medical malpractice laws can help bring down the cost of health care. (Applause.) Now -- there yougo. There you go. Now, I don't believe malpractice reform is a silver bullet, but I've talked to enough doctors toknow that defensive medicine may be contributing to unnecessary costs. (Applause.) So I'm proposing that wemove forward on a range of ideas about how to put patient safety first and let doctors focus on practicing medicine. (Applause.) I know that the Bush administration considered authorizing demonstration projects in individual states totest these ideas. I think it's a good idea, and I'm directing my Secretary of Health and Human Services to moveforward on this initiative today. (Applause.)

Now, add it all up, and the plan I'm proposing will cost around $900 billion over 10 years -- less than we have spenton the Iraq and Afghanistan wars, and less than the tax cuts for the wealthiest few Americans that Congress passedat the beginning of the previous administration. (Applause.) Now, most of these costs will be paid for with moneyalready being spent -- but spent badly -- in the existing health care system. The plan will not add to our deficit. Themiddle class will realize greater security, not higher taxes. And if we are able to slow the growth of health care costsby just one-tenth of 1 percent each year -- one-tenth of 1 percent -- it will actually reduce the deficit by $4 trillionover the long term.

Now, this is the plan I'm proposing. It's a plan that incorporates ideas from many of the people in this room tonight --Democrats and Republicans. And I will continue to seek common ground in the weeks ahead. If you come to mewith a serious set of proposals, I will be there to listen. My door is always open.

But know this: I will not waste time with those who have made the calculation that it's better politics to kill this planthan to improve it. (Applause.) I won't stand by while the special interests use the same old tactics to keep thingsexactly the way they are. If you misrepresent what's in this plan, we will call you out. (Applause.) And I will not --and I will not accept the status quo as a solution. Not this time. Not now.

Everyone in this room knows what will happen if we do nothing. Our deficit will grow. More families will gobankrupt. More businesses will close. More Americans will lose their coverage when they are sick and need it themost. And more will die as a result. We know these things to be true.

That is why we cannot fail. Because there are too many Americans counting on us to succeed -- the ones whosuffer silently, and the ones who shared their stories with us at town halls, in e-mails, and in letters.

I received one of those letters a few days ago. It was from our beloved friend and colleague, Ted Kennedy. He hadwritten it back in May, shortly after he was told that his illness was terminal. He asked that it be delivered upon hisdeath.

In it, he spoke about what a happy time his last months were, thanks to the love and support of family and friends,his wife, Vicki, his amazing children, who are all here tonight. And he expressed confidence that this would be theyear that health care reform -- "that great unfinished business of our society," he called it -- would finally pass. He


5 of 7 10/24/2009 4:48 PM

��!��!�� #��+�!�\^�� \��+��` |��|�!�|^�� |��|�|~��| � ��|��|��#�� |��|!��!|��+



repeated the truth that health care is decisive for our future prosperity, but he also reminded me that "it concernsmore than material things." "What we face," he wrote, "is above all a moral issue; at stake are not just the details ofpolicy, but fundamental principles of social justice and the character of our country."

I've thought about that phrase quite a bit in recent days -- the character of our country. One of the unique andwonderful things about America has always been our self-reliance, our rugged individualism, our fierce defense offreedom and our healthy skepticism of government. And figuring out the appropriate size and role of governmenthas always been a source of rigorous and, yes, sometimes angry debate. That's our history.

For some of Ted Kennedy's critics, his brand of liberalism represented an affront to American liberty. In their minds,his passion for universal health care was nothing more than a passion for big government.

But those of us who knew Teddy and worked with him here -- people of both parties -- know that what drove himwas something more. His friend Orrin Hatch -- he knows that. They worked together to provide children with healthinsurance. His friend John McCain knows that. They worked together on a Patient's Bill of Rights. His friendChuck Grassley knows that. They worked together to provide health care to children with disabilities.

On issues like these, Ted Kennedy's passion was born not of some rigid ideology, but of his own experience. It wasthe experience of having two children stricken with cancer. He never forgot the sheer terror and helplessness thatany parent feels when a child is badly sick. And he was able to imagine what it must be like for those withoutinsurance, what it would be like to have to say to a wife or a child or an aging parent, there is something that couldmake you better, but I just can't afford it.

That large-heartedness -- that concern and regard for the plight of others -- is not a partisan feeling. It's not aRepublican or a Democratic feeling. It, too, is part of the American character -- our ability to stand in other people'sshoes; a recognition that we are all in this together, and when fortune turns against one of us, others are there tolend a helping hand; a belief that in this country, hard work and responsibility should be rewarded by some measureof security and fair play; and an acknowledgment that sometimes government has to step in to help deliver on thatpromise.

This has always been the history of our progress. In 1935, when over half of our seniors could not supportthemselves and millions had seen their savings wiped away, there were those who argued that Social Securitywould lead to socialism, but the men and women of Congress stood fast, and we are all the better for it. In 1965,when some argued that Medicare represented a government takeover of health care, members of Congress --Democrats and Republicans -- did not back down. They joined together so that all of us could enter our goldenyears with some basic peace of mind.

You see, our predecessors understood that government could not, and should not, solve every problem. Theyunderstood that there are instances when the gains in security from government action are not worth the addedconstraints on our freedom. But they also understood that the danger of too much government is matched by theperils of too little; that without the leavening hand of wise policy, markets can crash, monopolies can stiflecompetition, the vulnerable can be exploited. And they knew that when any government measure, no matter howcarefully crafted or beneficial, is subject to scorn; when any efforts to help people in need are attacked asun-American; when facts and reason are thrown overboard and only timidity passes for wisdom, and we can nolonger even engage in a civil conversation with each other over the things that truly matter -- that at that point wedon't merely lose our capacity to solve big challenges. We lose something essential about ourselves.

That was true then. It remains true today. I understand how difficult this health care debate has been. I know thatmany in this country are deeply skeptical that government is looking out for them. I understand that the politicallysafe move would be to kick the can further down the road -- to defer reform one more year, or one more election, orone more term.

But that is not what the moment calls for. That's not what we came here to do. We did not come to fear the future. We came here to shape it. I still believe we can act even when it's hard. (Applause.) I still believe -- I still believethat we can act when it's hard. I still believe we can replace acrimony with civility, and gridlock with progress. I stillbelieve we can do great things, and that here and now we will meet history's test.

Because that's who we are. That is our calling. That is our character. Thank you, God bless you, and may Godbless the United States of America. (Applause.)

END 9:03 P.M. EDT

Home

The White HouseBlog

Photos & Videos

Photo GalleriesVideoLive StreamsPodcasts

Briefing Room

Your Weekly AddressSpeeches & RemarksPress BriefingsStatements & ReleasesPresidential ActionsSigned LegislationNominations &Appointments

Issues

Civil RightsDefenseDisabilitiesEconomyEducationEnergy & EnvironmentEthicsFamilyFiscal ResponsibilityForeign PolicyHealth CareHomeland SecurityImmigrationPovertyRuralSeniors & Social SecurityServiceTaxesTechnologyUrban PolicyVeteransWomenAdditional Issues

The Administration

President Barack ObamaVice President Joe BidenFirst Lady Michelle ObamaDr. Jill BidenThe CabinetWhite House StaffExecutive Office of thePresident

The White House

HistoryPresidentsFirst LadiesThe Oval OfficeThe Vice President'sResidence & OfficeEisenhower ExecutiveOffice BuildingCamp DavidAir Force OneWhite House FellowsWhite House InternshipsWhite House 101Tours & Events

Our Government

The Executive BranchThe Legislative BranchThe Judicial BranchThe ConstitutionFederal Agencies &CommissionsElections & VotingState & Local GovernmentResources

En Español Accessibility Copyright Information Privacy Policy ContactUSA.gov Jobs Subscribe to RSS Feeds


6 of 7 10/24/2009 4:48 PM

��!��!�� #��+�!�\^�� \��+��` |��|�!�|^�� |��|�|~��| � ��|��|��#�� |��|!��!|��+



United Nations' Universal Declaration of Human Rights, est. December 10, 1948�

On�December�10th,�1948,�the�newly�formed�United�Nations�adopted�a�universal�declaration�that�transcended�cultural�and�national�boundaries.�The�Universal�Declaration�of�Human�Rights�established�a�common�standard�for�human�achievement�for�all�peoples�and�all�nations;�rooted�in�the�values�of�freedom,�equality,�solidarity,�tolerance,�respect�and�shared�responsibility.�

Universal�Declaration�of�Human�Rights��

�

Preamble�

Whereas�recognition�of�the�inherent�dignity�and�of�the�equal�and�inalienable�rights�of�all�members�of�the�human�family�is�the�foundation�of�freedom,�justice�and�peace�in�the�world,��

Whereas�disregard�and�contempt�for�human�rights�have�resulted�in�barbarous�acts�which�have�outraged�the�conscience�of�mankind,�and�the�advent�of�a�world�in�which�human�beings�shall�enjoy�freedom�of�speech�and�belief�and�freedom�from�fear�and�want�has�been�proclaimed�as�the�highest�aspiration�of�the�common�people,��

Whereas�it�is�essential,�if�man�is�not�to�be�compelled�to�have�recourse,�as�a�last�resort,�to�rebellion�against�tyranny�and�oppression,�that�human�rights�should�be�protected�by�the�rule�of�law,��

Whereas�it�is�essential�to�promote�the�development�of�friendly�relations�between�nations,��

Whereas�the�peoples�of�the�United�Nations�have�in�the�Charter�reaffirmed�their�faith�in�fundamental�human�rights,�in�the�dignity�and�worth�of�the�human�person�and�in�the�equal�rights�of�men�and�women�and�have�determined�to�promote�social�progress�and�better�standards�of�life�in�larger�freedom,��

Whereas�Member�States�have�pledged�themselves�to�achieve,�in�cooperation�with�the�United�Nations,�the�promotion�of�universal�respect�for�and�observance�of�human�rights�and�fundamental�freedoms,��

Whereas�a�common�understanding�of�these�rights�and�freedoms�is�of�the�greatest�importance�for�the�full�realization�of�this�pledge,��

Now,�therefore,��

The�General�Assembly,��

Proclaims�this�Universal�Declaration�of�Human�Rights�as�a�common�standard�of�achievement�for�all�peoples�and�all�nations,�to�the�end�that�every�individual�and�every�organ�of�society,�keeping�this�Declaration�constantly�in�mind,�shall�strive�by�teaching�and�education�to�promote�respect�for�these�rights�and�freedoms�and�by�progressive�measures,�national�and�international,�to�secure�their�universal�and�effective�recognition�and�observance,�both�among�the�peoples�of�Member�States�themselves�and�among�the�peoples�of�territories�under�their�jurisdiction.��

Article�1.��All�human�beings�are�born�free�and�equal�in�dignity�and�rights.�They�are�endowed�with�reason�and�conscience�and�should�act�towards�one�another�in�a�spirit�of�brotherhood.��

Appendix C: Every Human Has Rights Declaration


Source: Retrieved September 14, 2009, from www.everyhumanhasrights.org/universal-declaration/read-it

Article�2.��Everyone�is�entitled�to�all�the�rights�and�freedoms�set�forth�in�this�Declaration,�without�distinction�of�any�kind,�such�as�race,�colour,�sex,�language,�religion,�political�or�other�opinion,�national�or�social�origin,�property,�birth�or�other�status.��

Furthermore,�no�distinction�shall�be�made�on�the�basis�of�the�political,�jurisdictional�or�international�status�of�the�country�or�territory�to�which�a�person�belongs,�whether�it�be�independent,�trust,�non�self�governing�or�under�any�other�limitation�of�sovereignty.��

Article�3.��Everyone�has�the�right�to�life,�liberty�and�security�of�person.��

Article�4.��No�one�shall�be�held�in�slavery�or�servitude;�slavery�and�the�slave�trade�shall�be�prohibited�in�all�their�forms.��

Article�5.�No�one�shall�be�subjected�to�torture�or�to�cruel,�inhuman�or�degrading�treatment�or�punishment.��

Article�6.��Everyone�has�the�right�to�recognition�everywhere�as�a�person�before�the�law.��

Article�7.��All�are�equal�before�the�law�and�are�entitled�without�any�discrimination�to�equal�protection�of�the�law.�All�are�entitled�to�equal�protection�against�any�discrimination�in�violation�of�this�Declaration�and�against�any�incitement�to�such�discrimination.��

Article�8.��Everyone�has�the�right�to�an�effective�remedy�by�the�competent�national�tribunals�for�acts�violating�the�fundamental�rights�granted�him�by�the�constitution�or�by�law.��

Article�9.��No�one�shall�be�subjected�to�arbitrary�arrest,�detention�or�exile.��

Article�10.��Everyone�is�entitled�in�full�equality�to�a�fair�and�public�hearing�by�an�independent�and�impartial�tribunal,�in�the�determination�of�his�rights�and�obligations�and�of�any�criminal�charge�against�him.��

Article�11.��1.�Everyone�charged�with�a�penal�offence�has�the�right�to�be�presumed�innocent�until�proved�guilty�according�to�law�in�a�public�trial�at�which�he�has�had�all�the�guarantees�necessary�for�his�defense.��

2.�No�one�shall�be�held�guilty�of�any�penal�offence�on�account�of�any�act�or�omission�which�did�not�constitute�a�penal�offence,�under�national�or�international�law,�at�the�time�when�it�was�committed.�Nor�shall�a�heavier�penalty�be�imposed�than�the�one�that�was�applicable�at�the�time�the�penal�offence�was�committed.��

Article�12.��No�one�shall�be�subjected�to�arbitrary�interference�with�his�privacy,�family,�home�or�correspondence,�nor�to�attacks�upon�his�honor�and�reputation.�Everyone�has�the�right�to�the�protection�of�the�law�against�such�interference�or�attacks.��

Article�13.��1.�Everyone�has�the�right�to�freedom�of�movement�and�residence�within�the�borders�of�each�State.��

2.�Everyone�has�the�right�to�leave�any�country,�including�his�own,�and�to�return�to�his�country.��

�

Article�14.��1.�Everyone�has�the�right�to�seek�and�to�enjoy�in�other�countries�asylum�from�persecution.��

2.�This�right�may�not�be�invoked�in�the�case�of�prosecutions�genuinely�arising�from�non�political�crimes�or�from�acts�contrary�to�the�purposes�and�principles�of�the�United�Nations.��

Appendix C: Every Human Has Rights Declaration (cont.)



Article�15.��1.�Everyone�has�the�right�to�a�nationality.��

2.�No�one�shall�be�arbitrarily�deprived�of�his�nationality�nor�denied�the�right�to�change�his�nationality.��

Article�16.��1.�Men�and�women�of�full�age,�without�any�limitation�due�to�race,�nationality�or�religion,�have�the�right�to�marry�and�to�found�a�family.�They�are�entitled�to�equal�rights�as�to�marriage,�during�marriage�and�at�its�dissolution.��

2.�Marriage�shall�be�entered�into�only�with�the�free�and�full�consent�of�the�intending�spouses.��

3.�The�family�is�the�natural�and�fundamental�group�unit�of�society�and�is�entitled�to�protection�by�society�and�the�State.��

Article�17.��1.�Everyone�has�the�right�to�own�property�alone�as�well�as�in�association�with�others.��

2.�No�one�shall�be�arbitrarily�deprived�of�his�property.��

Article�18.��Everyone�has�the�right�to�freedom�of�thought,�conscience�and�religion;�this�right�includes�freedom�to�change�his�religion�or�belief,�and�freedom,�either�alone�or�in�community�with�others�and�in�public�or�private,�to�manifest�his�religion�or�belief�in�teaching,�practice,�worship�and�observance.��

Article�19.��Everyone�has�the�right�to�freedom�of�opinion�and�expression;�this�right�includes�freedom�to�hold�opinions�without�interference�and�to�seek,�receive�and�impart�information�and�ideas�through�any�media�and�regardless�of�frontiers.��

Article�20.��1.�Everyone�has�the�right�to�freedom�of�peaceful�assembly�and�association.��

2.�No�one�may�be�compelled�to�belong�to�an�association.��

Article�21.��1.�Everyone�has�the�right�to�take�part�in�the�government�of�his�country,�directly�or�through�freely�chosen�representatives.��

2.�Everyone�has�the�right�to�equal�access�to�public�service�in�his�country.��

3.�The�will�of�the�people�shall�be�the�basis�of�the�authority�of�government;�this�will�shall�be�expressed�in�periodic�and�genuine�elections�which�shall�be�by�universal�and�equal�suffrage�and�shall�be�held�by�secret�vote�or�by�equivalent�free�voting�procedures.��

Article�22.��Everyone,�as�a�member�of�society,�has�the�right�to�social�security�and�is�entitled�to�realization,�through�national�effort�and�international�co�operation�and�in�accordance�with�the�organization�and�resources�of�each�State,�of�the�economic,�social�and�cultural�rights�indispensable�for�his�dignity�and�the�free�development�of�his�personality.��

Article�23.��1.�Everyone�has�the�right�to�work,�to�free�choice�of�employment,�to�just�and�favorable�conditions�of�work�and�to�protection�against�unemployment.��

2.�Everyone,�without�any�discrimination,�has�the�right�to�equal�pay�for�equal�work.��

3.�Everyone�who�works�has�the�right�to�just�and�favorable�remuneration�ensuring�for�himself�and�his�family�an�existence�worthy�of�human�dignity,�and�supplemented,�if�necessary,�by�other�means�of�social�protection.��







4.�Everyone�has�the�right�to�form�and�to�join�trade�unions�for�the�protection�of�his�interests.��

Article�24.��Everyone�has�the�right�to�rest�and�leisure,�including�reasonable�limitation�of�working�hours�and�periodic�holidays�with�pay.��

Article�25.��1.�Everyone�has�the�right�to�a�standard�of�living�adequate�for�the�health�and�well�being�of�himself�and�of�his�family,�including�food,�clothing,�housing�and�medical�care�and�necessary�social�services,�and�the�right�to�security�in�the�event�of�unemployment,�sickness,�disability,�widowhood,�old�age�or�other�lack�of�livelihood�in�circumstances�beyond�his�control.��

2.�Motherhood�and�childhood�are�entitled�to�special�care�and�assistance.�All�children,�whether�born�in�or�out�of�wedlock,�shall�enjoy�the�same�social�protection.��

Article�26.��1.�Everyone�has�the�right�to�education.�Education�shall�be�free,�at�least�in�the�elementary�and�fundamental�stages.�Elementary�education�shall�be�compulsory.�Technical�and�professional�education�shall�be�made�generally�available�and�higher�education�shall�be�equally�accessible�to�all�on�the�basis�of�merit.��

2.�Education�shall�be�directed�to�the�full�development�of�the�human�personality�and�to�the�strengthening�of�respect�for�human�rights�and�fundamental�freedoms.�It�shall�promote�understanding,�tolerance�and�friendship�among�all�nations,�racial�or�religious�groups,�and�shall�further�the�activities�of�the�United�Nations�for�the�maintenance�of�peace.��

3.�Parents�have�a�prior�right�to�choose�the�kind�of�education�that�shall�be�given�to�their�children.��

Article�27.��1.�Everyone�has�the�right�freely�to�participate�in�the�cultural�life�of�the�community,�to�enjoy�the�arts�and�to�share�in�scientific�advancement�and�its�benefits.��

2.�Everyone�has�the�right�to�the�protection�of�the�moral�and�material�interests�resulting�from�any�scientific,�literary�or�artistic�production�of�which�he�is�the�author.��

Article�28.��Everyone�is�entitled�to�a�social�and�international�order�in�which�the�rights�and�freedoms�set�forth�in�this�Declaration�can�be�fully�realized.��

Article�29.��1.�Everyone�has�duties�to�the�community�in�which�alone�the�free�and�full�development�of�his�personality�is�possible.��

2.�In�the�exercise�of�his�rights�and�freedoms,�everyone�shall�be�subject�only�to�such�limitations�as�are�determined�by�law�solely�for�the�purpose�of�securing�due�recognition�and�respect�for�the�rights�and�freedoms�of�others�and�of�meeting�the�just�requirements�of�morality,�public�order�and�the�general�welfare�in�a�democratic�society.��

3.�These�rights�and�freedoms�may�in�no�case�be�exercised�contrary�to�the�purposes�and�principles�of�the�United�Nations.��

Article�30.��Nothing�in�this�Declaration�may�be�interpreted�as�implying�for�any�State,�group�or�person�any�right�to�engage�in�any�activity�or�to�perform�any�act�aimed�at�the�destruction�of�any�of�the�rights�and�freedoms�set�forth�herein.��

G L A X O S M I T H K L I N E B R I E F I N G S

Key Aspects of a Sustainable Healthcare System

Introduction

Governments across the world are looking for ways to bring into balance a number ofcompeting policy goals: economic growth; industrial development; attraction of foreign direct investment; advances in education, science and technology; overall budgetary control;complex and evolving healthcare needs. Balancing options is especially hard in the area of healthcare.

Market-based pricing for reimbursed pharmaceuticals, in which companies are free to set prices and there are no supply-side or demand-side controls, remains the industry’s preferred solution to meeting the needs of patients and society’s demand for better medical treatment. However, markets in Europe and the International region tend instead to be characterized by monopsonistic payer structures, over-regulation, poor resource allocation, slow access for new medicines, and a focus on cost rather than value.

Against this background, this paper outlines the elements which GSK believes mosteffectively deliver sustainable and efficient healthcare systems. Not all of these elements may be relevant or appropriate to every country. However, governments are urged to review some, if not all of them, as they consider how best to meet the challenge of establishing a healthcare policy that meets the needs of all key stakeholders, namely patients (who want rapid access to the best treatments), payers (who want to deliver good healthcare to their citizens and manage budgets) and the industry (which wants to secure a return oninvestment that will incentivise further innovation).

Key Elements

1. Healthcare priorities should be identified through improved and earlier dialogue

National healthcare systems and policies should ensure that the right capabilities are put in place for defining treatment priorities within each individual disease area and for identifying disease management targets.

Industry and government should discuss these health priorities and targets as part of a 10-20year strategic agenda and not just as part of cost containment measures over the next 6 months. This will enable the development of new medicines, to help ensure that unmet need is addressed, disease prioritisation is clear and patients get access to the medicines that will improve their lives.

Appendix D: Key Aspects of a Sustainable Healthcare System


Source: Retrieved October 24, 2009, from www.gsk.com/policies/GSK-and-key-aspects-of-a-sustainable-healthcare-system.pdf


Predictability is created by earlier and more in-depth interaction with healthcare payers to discuss specific data that payers require in order to decide on the reimbursement of a product. At present, dialogue generally starts once a medicine has been approved and the data generated. It is often conducted in a manner that lacks predictability and coherence.

2. Healthcare funding should be adequate and sustainable

Resources should be allocated where quality is achieved and outcomes are maximised.Ways of achieving this include:

� improved prevention. Chronic diseases are among the most prevalent, costly andpreventable of all healthcare problems. By encouraging prevention, healthcare will be improved and huge healthcare spending avoided.

� driving out waste. Efficient practice (prevention, diagnosis, treatment, rehabilitation) will lead to savings for the healthcare system as a whole. With respect to pharmaceuticals, policies for proper usage of medicines in both qualitative and quantitative terms should be promoted and implemented, with a view to freeing up resources for use elsewhere in the system.

� integrating care of chronic diseases and viewing drug budgets in the context ofhealthcare overall. Silo-budgeting should be eliminated because a focus on medicines expenditure leads governments to seek a disproportionate contribution to costcontainment from pharmaceuticals.

� developing a greater awareness of the cost-effectiveness of innovative medicines. For example, an increase in medicines spending in the treatment of Alzheimer’s can lead to greater overall savings. Governments should identify and target savings and redirectexpenditure towards innovative drugs.

� recognising the importance and value of comprehensive vaccination programmes in the context of investing in cost-effective preventative care

� taking account of the existence and benefits of new technologies. The benefits can refer to their cost-efficiency in relation to hospital-based interventions or to advantages for patients in terms of convenience, improved quality of life etc. A focus on cost, rather than value, will not meet the budgetary goals of governments.

� strengthening/establishing primary care services and avoiding misuse and overuse of medical services; an ambulatory care system should be developed. This includes a GP referral system, the development of community care centres with focus on healthpromotion and disease prevention, and further development of the role of pharmacists.

� reassessing the organisation of hospitals and the number of acute hospital beds in light of current medical needs and available technologies; innovative therapies and medicines can reduce the length of stay or avoid hospitalisation and should therefore beencouraged.

� promoting appropriate use of over-the-counter/self medication products : Governments should encourage the appropriate use of self medication products as a means of relieving pressure on public healthcare systems (ie. physician appointments) and of freeing up financial resources for innovative products.

Appendix D: Key Aspects of a Sustainable Healthcare System (cont.)




New funding sources for healthcare should be considered:

Systems in which the government is the sole purchaser of medicines are likely to beunsustainable in the medium to long-term. Governments should look at new funding options, including;

� a greater role for private health insurance� increased patient co-payment, in a way that encourages compliance and cost-effective

use of medicines while ensuring that low-income and other vulnerable groups are not excluded or discouraged from seeking and receiving medical care. Any move to asituation where people are prepared or required to contribute more to healthcare costs will require a process of education and communication, especially in view of the fact that currently patients remain reticent to pay additional charges to their prescription. There is a clear risk that patients perceive that a medicine’s value is somehow questionable if the Government does not fully reimburse it.

� new or increased taxation on products and behaviours, like fast foods and smoking, which increase healthcare costs. Tax revenues from these sources should be dedicated to healthcare budgets.

An acceptance by citizens that they need to pay more for healthcare is critical. Shifting more costs onto consumers of healthcare will make them more demanding, hungrier forinformation and more sensitive to value. Together patients and doctors can work on adopting the most cost-effective treatments and thereby help to reduce the inefficient use ofhealthcare facilities.

3. Pricing and Reimbursement policies should reflect the true value of “innovation”.

Society is on the brink of a new era in which pharmaceutical research in genomics and pharmacogenetics will yield an entirely new class of medical interventions with respect to prevention, detection, treatment and cure. This will throw a radically new light on the concept of effectiveness (tailored medicine with much higher rates of success) and cost (tailored medicine instead of one-size fits all).

The nature of drug development, however, remains highly unpredictable. There is noguarantee that the first drug to market will be the best. Some new medicines will berevolutionary breakthroughs. Others will deliver incremental benefits over existing treatments,be it in efficacy, improved tolerability or improved mode of administration. Products thatdeliver incremental innovation provide alternatives for patients that do not respond well to the first product in class. They also create competition, thereby driving price and valueoptimisation and provide the path to more radical change

Where payers seek value for money, pharmaceutical companies require money for value.The reward society gives to an innovative medicine must reflect its added therapeutic value.Reward for innovation can come in different forms, not just a premium price - e.g.unrestricted access to the patient population defined as needing new therapy, therapeutic guidelines recognising a new therapy, and speed of access.





Products should not be punished for success – high volume, and high favourability with prescribers, should not make products the targets for cuts. Payers should not increase volumes for proven value only to reduce price.

Reimbursement systems should reward medicines by taking into account measures ofsuccess, (whether these are available at launch or during a product’s life-cycle) and that are in line with the way markets function ie. quality, health outcome evidence, physicians’prescribing etc.

Rather than being dominated by short-termism and ad-hoc measures, pricing andreimbursement systems must allow business planning for long-term supply of medicines and encourage R&D investment in medicines that count.

4. Tools for measuring “innovation” should be appropriate

The evaluation of a medicine’s value must deliver a reasonable balance between theinterests of payers (better management of budgets), patients (better access and outcomes), physicians (better outcomes), and industry (appropriate reward for innovation).

Health technology assessment (HTA) is one of the tools, when appropriately defined and applied, that can contribute to an assessment of clinical effectiveness and cost-effectivenessof new medicines and new technologies (including medical devices). Certain key principles should underpin any HTA system.

� the process should be inclusive and involve early dialogue with industry around the aims and priorities of the process.

� there should be clarity and consensus on the criteria against which therapeutic progress(or value) can be measured throughout a product’s lifecycle. The measures of value can include: mortality and morbidity data, side-effects, tolerability, predictive surrogateparameters, pharmaceutical form, route of application, compliance, ease of use, impact on the healthcare service, disease severity, medical need, quality of life, and patient preferences.

� the evaluation process should be independent, transparent and scientifically robust.Where HTAs are focussed on delivering guidance, the evaluating body should be independent of the payer.

� evaluation systems should be clear and consistent with regards to methodology, criteria used and data required – this would include clear timeframes for the evaluation and for any decisions arising from it

� patients, physicians and the industry should be involved in the assessment process, to allow for a better evaluation of the balance between benefits, costs and risk.

� pharmaceutical companies should be able to submit health outcomes information to the relevant government bodies throughout a product’s lifecycle. This evidence should then receive appropriate attention and reward from payers. A ‘one size fits all’ approach to the timing of appraisals fails to take account of the complexity of conducting assessmentsand ignores differences in treatments and therapeutic areas.

� the HTA should be separate from the regulatory review for the grant of a marketing authorisation. Regulatory review must be based on objective and scientifically verifiable criteria of efficacy, safety and quality. HTA should not become a fourth hurdle inmarketing authorisation.





5. Increased access to information for patients should be actively encouraged

Citizens and patients should be at the centre of many key aspects of healthcare as well asmedicines policy – such as assessments of value, decisions on access, and allocation of funding. This can only work, however, if there is sufficient information available to them -patients should be given the ability to make choices, and should receive the information to choose wisely.

Industry should be involved in this initiative. Disease education and vaccines information campaigns are an example of how responsible, approved information from the industry to the public can fulfil a number of objectives: raising public awareness of the existence of a safe and effective vaccine; educating the public of the risks attached to non-vaccination; allowing important savings to be achieved for healthcare systems by preventing disease; andcontributing to the overall "wellness" of society.

6. Free pricing for non-reimbursed medicines should be allowed

When governments negotiate, they should only negotiate for the prices of what theypurchase or reimburse; sales outside the state system should be subject to the normal rules of market pricing.

7. Generics should play an appropriate part in treatment options

Appropriate use of generics can deliver savings in healthcare expenditure and free up resources to reward innovation. However, a more competitive market is required to enable generics to yield the savings they promise. It is estimated that if the OECD utilised generics at the same rate and prices as in the US, savings of $5-30bn annually could result. To this end:

� generics should be commoditised, reflecting the limited innovation and investment that goes into their development. Price differences between generics and branded medicines should be visible and sufficiently large to allow healthcare systems to fully benefit from savings created by the use of generics.

� generic substitution should be used by governments and other payers to free upresources to reward innovation. Provided that physicians can make exceptions onmedical grounds, a generics policy, including a system that encourages competitivegeneric prices, will free up resources that should be used to reward innovation.

8. Use of OTC products should be encouraged

Policies encouraging the use of over-the-counter medicines should be actively implemented where medicines provide a clear health benefit to patients and are sufficiently safe to warrant OTC status. These policies should include Government support for products with a long history of safe use being switched from prescription to non-prescription. The advertising and promotion of these products should also be liberalised.





9. Effective regulatory systems should be established

A well-regarded registration process for new pharmaceutical products that enables medicines to gain international credibility by passing stringent criteria on quality, safety and efficacy will encourage pharmaceutical companies to conduct clinical trials and launch innovativeproducts early. Key regulations should be conducive to the development and early adoption of innovative new drugs.

10. IP should be respected

A strong legal framework on intellectual property rights creates a desirable environment for research and development. Enactment and enforcement of international patent protection and registration data exclusivity to reward innovation and allow funding of R&D in an era of escalating technology development costs is a key factor.

September 2006




GlaxoSmithKline plcNotice of Annual General Meeting

2.30pm on Wednesday, 20th May 2009

This document is important and requires your immediate attention. If you are in any doubt as to what action you should take, you should consult your stockbroker, bank manager, solicitor, accountant or other professional advisor immediately. If you have sold or otherwise transferred all of your shares, please pass this document, together with the accompanying documents, to the purchaser or transferee, or to the person who arranged the sale or transfer so they can pass these documents to the person who now holds the shares.

Source: Retrieved October 25, 2009, from www.gsk.com/investors/agm/2009/agm-notice-2009.pdf

Appendix E: 2009 Notice of Annual GlaxoSmithKline Shareholder Meeting


24th March 2009To the holders of the company’s Ordinary shares and American Depositary Shares and, for information, to the holders of the SmithKline Beecham plc Floating Rate Unsecured Loan Stock.

Dear Shareholder,Annual General Meeting 2009I am pleased to enclose the Notice of Meeting for the ninth Annual General Meeting (the “AGM”) of GlaxoSmithKline plc together with the 2008 Annual Report and 2008 Summary. The AGM will be held at 2.30pm on Wednesday, 20th May 2009 at the Queen Elizabeth II Conference Centre, Broad Sanctuary, Westminster, London SW1P 3EE.If you will not be attending, you may appoint a proxy electronically via www.shareview.co.uk or www.sharevote.co.uk or if you hold your shares in CREST via the CREST system or by completing and returning the enclosed form of proxy. In each case, notice of your appointment of a proxy should reach the company’s registrars no later than 2.30pm on Monday, 18th May 2009.A resolution referring to the Financial Statements is included in the ordinary business of the AGM.Our Articles of Association require that certain of our current Directors retire by rotation. I therefore ask you to support the re-election of Mr Larry Culp, Sir Crispin Davis, Dr Moncef Slaoui and Mr Tom de Swaan who will each retire and offer themselves for re-election. Sir Ian Prosser and Dr Schmitz will also be retiring, but will not be seeking re-election. They are to retire from the Board at the end of the AGM. In addition, a resolution is proposed covering the formal election of a new Non-Executive Director, Mr James Murdoch, who has been appointed to the Board with effect from 20th May 2009.Resolutions are proposed in the special business of the AGM to approve the adoption of three new share-based remuneration plans: the GlaxoSmithKline 2009 Performance Share Plan, the GlaxoSmithKline 2009 Share Option Plan and the GlaxoSmithKline 2009 Deferred Annual Bonus Plan, as part of the new Remuneration Policy. Full details of how these plans will be implemented under the new policy can be found in the 2008 Annual Report. The key terms of the new plans are set out in the explanatory notes on pages 14 to 20 of the Notice of Meeting. In addition, resolutions are proposed to retain a notice period for general meetings other than an AGM of 14 days in preparation for the implementation of the EU Shareholder Rights Directive and, following the implementation of the Companies Act 2006, to omit from the published copies of the company’s 2009 Annual Report, the name of the individual who signs the Auditors’ reports on behalf of GSK’s Auditors. Explanatory notes for all the business of the AGM are given on pages 10 to 20 of this document.

RecommendationYour Board believes that the resolutions contained in the Notice of Meeting are in the best interests of the company and shareholders as a whole and recommends you to vote in favour of them, as your Directors intend to do in respect of their beneficial shareholdings.Yours sincerely,

Sir Christopher Gent Chairman GlaxoSmithKline plc 2

Registered in England & WalesNo. 3888792Registered office:980 Great West Road, BrentfordMiddlesex TW8 9GS




GlaxoSmithKlineNotice of MeetingNotice is hereby given that the ninth Annual General Meeting of GlaxoSmithKline plc will be held at the Queen Elizabeth II Conference Centre, Broad Sanctuary, Westminster, London SW1P 3EE on Wednesday, 20th May 2009 at 2.30pm to consider and, if thought fit, pass the following resolutions.

All resolutions will be proposed as ordinary resolutions, save for resolutions 12, 13 and 15 which will be proposed as special resolutions.

Ordinary Business1 To receive and adopt the Directors’ Report and the Financial Statements for the

year ended 31st December 2008.

2 To approve the Remuneration Report for the year ended 31st December 2008.

3 To elect Mr James Murdoch as a Director.

4 To re-elect Mr Larry Culp as a Director.

5 To re-elect Sir Crispin Davis as a Director.

6 To re-elect Dr Moncef Slaoui as a Director.

7 To re-elect Mr Tom de Swaan as a Director.

8 To authorise the Audit Committee to re-appoint PricewaterhouseCoopers LLP as Auditors to the company to hold office from the end of the Meeting to the end of the next Meeting at which accounts are laid before the company.

9 To authorise the Audit Committee to determine the remuneration of the Auditors.

Special Business10 Donations to political organisations & political expenditure (Ordinary

resolution)

THAT, in accordance with section 366 of the Companies Act 2006 (the “2006 Act”) the company is, and all companies that are at any time during the period for which this resolution has effect subsidiaries of the company are, authorised:

(a) to make political donations to political organisations other than political parties, as defined in section 363 of the 2006 Act, not exceeding £50,000 in total; and

(b) to incur political expenditure, as defined in section 365 of the 2006 Act, not exceeding £50,000 in total,

during the period beginning with the date of passing this resolution and ending at the end of the next Annual General Meeting of the company to be held in 2010 or, if earlier, on 30th June 2010.

11 Authority to allot shares (Ordinary resolution)

THAT the Directors be and are hereby generally and unconditionally authorised, in substitution for all subsisting authorities, to exercise all powers of the company to allot relevant securities (within the meaning of section 80 of the Companies Act 1985 (the “1985 Act”)):

(a) up to an aggregate nominal amount of £432,359,137; and

(b) comprising equity securities (as defined in the 1985 Act) up to a nominal amount of £864,692,333 (after deducting from such limit any relevant securities allotted under paragraph (a) above) in connection with an offer by way of a rights issue:

3




(i) to ordinary shareholders in proportion (as nearly as may be practicable) to their existing holdings; and

(ii) to holders of other equity securities as required by the rights of those securities or as the Board otherwise considers necessary,

and so that the Directors may make such exclusions or other arrangements as they consider expedient in relation to fractional entitlements, legal or practical problems under the laws of, or the requirements of any relevant regulatory body or stock exchange in, any territory, or any matter whatsoever,

which authorities shall expire at the end of the next Annual General Meeting of the company to be held in 2010 or, if earlier, on 30th June 2010 (unless previously revoked or varied by the company in general meeting) save that under each authority the company may, before such expiry, make an offer or agreement which would or might require relevant securities to be allotted after such expiry and the Directors may allot relevant securities in pursuance of such an offer or agreement as if the relevant authority conferred hereby had not expired.

12 Disapplication of pre-emption rights (Special resolution)

THAT the Directors be and are hereby empowered pursuant to section 95 of the 1985 Act to allot equity securities (within the meaning of section 94 of the 1985 Act) for cash pursuant to the authority conferred on the Directors by Resolution 11 and/or where such allotment constitutes an allotment of equity securities by virtue of section 94(3A) of the 1985 Act as if section 89(1) of the 1985 Act did not apply to such allotment, provided that this power shall be limited:

(a) to the allotment of equity securities in connection with an offer or issue of equity securities (but in the case of the authority granted under paragraph (b) of Resolution 11, by way of a rights issue only):

(i) to ordinary shareholders in proportion (as nearly as may be practicable) to their existing holdings; and

(ii) to holders of other equity securities, as required by the rights of those securities or as the Board otherwise considers necessary,

but so that the Directors may make such exclusions or other arrangements as they consider expedient in relation to fractional entitlements, legal or practical problems under the laws of, or the requirements of any relevant regulatory body or stock exchange, in any territory, or any matter whatsoever; and

(b) in the case of the authority granted under paragraph (a) of Resolution 11, to the allotment (otherwise than pursuant to sub-paragraph (a) above) of equity securities up to an aggregate nominal amount of £64,854,519,

and shall expire at the end of the next Annual General Meeting of the company to be held in 2010 or, if earlier, on 30th June 2010, save that the company may before such expiry make an offer or agreement which would or might require equity securities to be allotted after such expiry and the Directors may allot equity securities in pursuance of such an offer or agreement as if the power conferred hereby had not expired.

13 Purchase of own shares by the company (Special resolution)

THAT the company be and is hereby generally and unconditionally authorised for the purposes of section 166 of the 1985 Act to make market purchases (within the meaning of section 163 of the 1985 Act) of its own Ordinary shares of 25p each provided that:

4

Notice of Meeting : continued




(a) the maximum number of Ordinary shares hereby authorised to be purchased is 518,836,153;

(b) the minimum price which may be paid for each Ordinary share is 25p;

(c) the maximum price which may be paid for each Ordinary share shall be the higher of (i) an amount equal to 105% of the average of the middle market quotations for the company’s Ordinary shares as derived from the London Stock Exchange Daily Official List for the five business days immediately preceding the day on which the Ordinary share is contracted to be purchased and (ii) the higher of the price of the last independent trade and the highest current independent bid on the London Stock Exchange Official List at the time the purchase is carried out; and

(d) the authority conferred by this resolution shall, unless renewed prior to such time, expire at the end of the next Annual General Meeting of the company to be held in 2010 or, if earlier, on 30th June 2010 (provided that the company may enter into a contract for the purchase of Ordinary shares before the expiry of this authority which would or might be completed wholly or partly after such expiry).

14 Exemption from statement of the name of the senior statutory auditor in published copies of the Auditors’ reports (Ordinary resolution)

THAT:

(a) in accordance with section 506 of the 2006 Act, the name of the person who signs the Auditors’ reports to the company’s members on the annual accounts and auditable reports of the company for the year ending 31st December 2009 as senior statutory auditor (as defined in section 504 of the 2006 Act) for and on behalf of the company’s Auditors, should not be stated in published copies of the reports (such publication being as defined in section 505 of the 2006 Act) and the copy of the reports to be delivered to the registrar of companies under Chapter 10 of Part 15 of the 2006 Act; and

(b) the company considers on reasonable grounds that statement of the name of the senior statutory auditor would create or be likely to create a serious risk that the senior statutory auditor, or any other person, would be subject to violence or intimidation.

15 Reduced notice of a general meeting other than an annual general meeting (Special resolution)

THAT a general meeting of the company other than an Annual General Meeting may be called on not less than 14 clear days’ notice.

16 Approval of the adoption of the GlaxoSmithKline 2009 Performance Share Plan (Ordinary resolution)

THAT the adoption of the GlaxoSmithKline 2009 Performance Share Plan (the “PSP”), the principal features of which are summarised in the explanatory notes to this Notice and the rules of which have been signed for the purposes of identification by the Chairman, be and is hereby approved and the Directors are hereby authorised to:

(a) do whatever may be necessary or expedient to carry the PSP into effect, including making such modifications to the PSP as they may consider appropriate to take account of the requirements of the UK Listing Authority and best practice; and

5




(b) establish further plans for the benefit of employees outside the UK, based on the PSP but modified to take account of local tax, exchange control or securities laws in overseas territories, provided that any shares made available under such plans are treated as counting against the limits on individual and overall participation contained in the PSP.

17 Approval of the adoption of the GlaxoSmithKline 2009 Share Option Plan (Ordinary resolution)

THAT the adoption of the GlaxoSmithKline 2009 Share Option Plan (the “SOP”), the principal features of which are summarised in the explanatory notes to this Notice and the rules of which have been signed for the purposes of identification by the Chairman, be and is hereby approved and the Directors are hereby authorised to:

(a) do whatever may be necessary or expedient to carry the SOP into effect, including making such modifications to the SOP as they may consider appropriate to take account of the requirements of the UK Listing Authority and best practice; and

(b) establish further plans for the benefit of employees outside the UK, based on the SOP but modified to take account of local tax, exchange control or securities laws in overseas territories, provided that any shares made available under such plans are treated as counting against the limits on individual and overall participation contained in the SOP.

18 Approval of the adoption of the GlaxoSmithKline 2009 Deferred Annual Bonus Plan (Ordinary resolution)

THAT the adoption of the GlaxoSmithKline 2009 Deferred Annual Bonus Plan (the “DABP”), the principal features of which are summarised in the explanatory notes to this Notice and the rules of which have been signed for the purposes of identification by the Chairman, be and is hereby approved and the Directors are hereby authorised to:

(a) do whatever may be necessary or expedient to carry the DABP into effect, including making such modifications to the DABP as they may consider appropriate to take account of the requirements of the UK Listing Authority and best practice; and

(b) establish further plans for the benefit of employees outside the UK, based on the DABP but modified to take account of local tax, exchange control or securities laws in overseas territories, provided that any shares made available under such plans are treated as counting against the limits on individual and overall participation contained in the DABP.

By Order of the BoardSimon Bicknell Registered Office:Company Secretary 980 Great West Road 24th March 2009 Brentford, Middlesex TW8 9GS Registered in England and Wales No. 3888792

6

Notice of Meeting : continued




Notes

(i) All resolutions at the Meeting will be decided by poll as required by the company’s Articles of Association.

(ii) A “Vote Withheld” option is provided on the proxy card accompanying this Notice of Meeting which is to enable a member (shareholder) to withhold their vote on any particular resolution. It should be noted that a vote withheld is not a vote in law and will not be counted in the calculation of the proportion of votes “For” or “Against” a resolution.

(iii) A member of the company is entitled to appoint one or more proxies to attend the Meeting, and to speak and vote on his behalf, provided that each proxy is appointed to exercise the rights attached to a different share or shares held by that member. A proxy need not be a member of the company.

To appoint a proxy you may:

(a) register the appointment of your proxy vote electronically using the internet by going to www.sharevote.co.uk and following the instructions provided. The proxy appointment must be received by the company’s registrars, Equiniti, by 2.30pm on Monday, 18th May 2009. Please note that any electronic communication sent to the company’s registrars in respect of the appointment of a proxy that is found to contain a computer virus will not be accepted; or

(b) use the proxy card enclosed with this Notice of Meeting which should be returned direct to Equiniti at the address below, so as to be received no later than 2.30pm on Monday, 18th May 2009; or

(c) if you hold your shares in uncertificated form, you should utilise the CREST electronic proxy appointment service by using the procedures described in the CREST Manual. CREST Personal Members or other CREST sponsored members, and those CREST members who have appointed a service provider(s), should refer to their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf. Further details of voting via CREST are also given on page 23 of this document.

If you do not have a proxy card and believe that you should have one, or if you require additional proxy cards, please contact Equiniti on the numbers given below.

The return of a completed proxy card, other instrument or any CREST Proxy Instruction (as described in the section entitled “Information on how to vote” below) will not prevent a member attending the Meeting and voting in person if he/she wishes to do so.

Equiniti can be contacted by post at:

Equiniti Limited FREEPOST SEA 10846 Aspect House Spencer Road Lancing West Sussex BN99 6ZL

or by telephone on 0871 384 2991* if calling from within the UK, or on +44 (0)121 415 7067 if calling from outside the UK.

*At the time of publication, calls to this number were charged at 8p per minute from a BT landline. The prices charged by BT and other telephony providers may change from time to time.

7




(iv) Holders of the company’s American Depositary Shares evidenced by American Depositary Receipts (“ADRs”) may exercise their votes through the Depositary, The Bank of New York Mellon. Such holders wishing to attend the Meeting should obtain prior authority by being nominated an “Appointed Proxy” by the Depositary, who can be contacted at:

BNY Mellon Shareowner Services P.O. Box 358516 Pittsburgh, PA 15252-8516 USA Tel: 1 877 353 1154 (US toll free) + 1 212 815 6825 (outside US)

(v) Participants in the company’s Corporate Sponsored Nominee service may exercise their votes through the company’s registrars, Equiniti, by using the form of direction enclosed with this Notice of Meeting, which should be returned direct to Equiniti at the address in Note (iii) above, so as to be received no later than 2.30pm on Saturday, 16th May 2009.

(vi) Any person to whom this Notice is sent who is a person nominated under section 146 of the 2006 Act to enjoy information rights (a “Nominated Person”) may, under an agreement between him/her and the member by whom he/she was nominated, have a right to be appointed (or to have someone else appointed) as a proxy for the Meeting. If a Nominated Person has no such proxy appointment right or does not wish to exercise it, he/she may, under any such agreement, have a right to give instructions to the member as to the exercise of voting rights.

(vii) The statement of the rights of members in relation to the appointment of proxies in paragraph (iii) above does not apply to Nominated Persons. The rights described in that paragraph can only be exercised by members of the company.

(viii) Copies of contracts of service or, where applicable, letters of appointment, between Directors and the company or any of its subsidiaries are available for inspection at the company’s registered office given above during normal business hours (Saturdays, Sundays and public holidays excepted) and at the place of the Meeting on Wednesday, 20th May 2009 from 1.30pm until the end of the Meeting.

(ix) The register of Directors’ interests in the shares of the company and its subsidiaries will also be available for inspection at the place of the Meeting on Wednesday, 20th May 2009 from 1.30pm until the end of the Meeting.

(x) The rules of the proposed GlaxoSmithKline 2009 Performance Share Plan, the GlaxoSmithKline 2009 Share Option Plan and the GlaxoSmithKline 2009 Deferred Annual Bonus Plan will be available for inspection at the company’s registered office given above and at One Bunhill Row, London, EC1Y 8YY during normal business hours (Saturdays, Sundays and public holidays excepted) from the date of this Notice until the conclusion of the Meeting and at the place of the Meeting on Wednesday, 20th May 2009 from 1.30pm until the end of the Meeting.

8

Notes : continued




(xi) Members must be entered on the company’s register of members on Monday, 18th May 2009, at 6.00pm (or, in the event of an adjournment, 6.00pm on the date which is two days before the time of the adjourned meeting), to be entitled to attend and vote at the Meeting. Members may cast votes only in respect of shares of which they were registered holders at such time, and changes to the register of members after the relevant deadline shall be disregarded in determining the rights of any person to attend and vote at the Meeting.

(xii) To facilitate voting by corporate representatives at the Meeting, arrangements will be put in place at the Meeting so that:

(a) if a corporate member has appointed the Chairman of the Meeting as its corporate representative with instructions to vote on a poll in accordance with the directions of all the other corporate representatives for that member at the Meeting, then on a poll those corporate representatives will give voting directions to the Chairman and the Chairman will vote (or withhold a vote) as corporate representative in accordance with those directions; and

(b) if more than one corporate representative for the same corporate member attends the Meeting but the corporate member has not appointed the Chairman of the Meeting as its corporate representative, a designated corporate representative will be nominated from those corporate representatives who attend, who will vote on a poll and the other corporate representatives will give voting directions to that designated corporate representative.

Corporate members are referred to the guidance issued by the Institute of Chartered Secretaries and Administrators on proxies and corporate representatives (www.icsa.org.uk) for further details of this procedure. The guidance includes a sample form of representation letter if the Chairman is being appointed as described in (a) above.

9




GlaxoSmithKlineExplanatory Notes to Business of the Annual General MeetingOrdinary BusinessEach resolution will be proposed as an ordinary resolution. This means that for each of the resolutions to be passed, more than half of the votes cast must be in favour of the resolution.

Resolution 1 – To receive and adopt the Directors’ Report and the Financial Statements for 2008For each financial year, the Directors must present the Directors’ Report, the audited Financial Statements and the independent Auditors’ reports to shareholders at a General Meeting.

Resolution 2 – To approve the 2008 Remuneration ReportIn accordance with the Directors’ Remuneration Report Regulations 2002, shareholders are invited to vote on the Remuneration Report, which may be found on pages 78 to 98 of the 2008 Annual Report.

Resolutions 3-7 – Election and Re-election of DirectorsThe company’s Articles of Association require any Director newly appointed by the Board to retire at the first Annual General Meeting (“AGM”) after appointment. You are therefore asked to elect as a Director, Mr James Murdoch, who has been appointed by the Board since last year’s AGM. The Board considers that his experience of global business, marketing and communications will bring a unique and alternative perspective to the Board and he will also be an excellent addition to the Board’s Corporate Responsibility Committee, an area where he has shown particular leadership at BSkyB and News Corporation. The Board has determined that he will be an independent Non-Executive Director in accordance with the Combined Code on Corporate Governance.

The Articles of Association also require certain of the current Directors to retire at each AGM dependent on their length of service and the period since their last re-election. All of the Directors are eligible to seek re-election by shareholders at the AGM, if they so wish. Mr Larry Culp, Sir Crispin Davis, Sir Ian Prosser, Dr Ronaldo Schmitz, Dr Moncef Slaoui and Mr Tom de Swaan are all retiring by rotation. Neither Sir Ian nor Dr Schmitz will seek re-election and will retire from the Board at the conclusion of the AGM. Mr Culp and Sir Crispin were elected to the Board in 2004. Dr Slaoui and Mr de Swaan were elected to the Board in 2006.

Mr Culp, Sir Crispin, Dr Slaoui and Mr de Swaan each offer themselves for re-election at the AGM. The Chairman is satisfied that each of them continues to perform effectively and demonstrates commitment to their role including commitment of time for Board and committee meetings and their other duties.

Mr Culp, Sir Crispin, and Mr de Swaan are all Non-Executive Directors and have letters of appointment rather than service contracts. Dr Slaoui has a service contract with a notice period of 12 months. The Non-Executive Directors’ letters of appointment and Executive Directors’ service contracts are available for inspection as specified in Note (viii) above.

Biographical details for each of the Directors standing for election or re-election to the Board at the Meeting are given in the company’s 2008 Annual Report. In addition, current biographical details for each Director are maintained on www.gsk.com.

Resolutions 8 and 9 – To authorise the Audit Committee to re-appoint PricewaterhouseCoopers LLP as Auditors to the company and to determine their remunerationAt every General Meeting at which accounts are presented to shareholders, the

10




company is required to appoint auditors to serve until the next such meeting. PricewaterhouseCoopers LLP have indicated that they are willing to continue as the company’s Auditors for another year. You are asked to re-appoint them and, following normal practice, to authorise the Audit Committee to determine their remuneration. Details of the company’s policy with regard to non-audit work and details of work undertaken by the Auditors and their remuneration are given in the company’s Annual Report which can be viewed on www.gsk.com.

Special BusinessWhere resolutions are passed as special resolutions, in order for those resolutions to be passed at least three-quarters of the votes cast must be in favour of the resolution.

Resolution 10 – Donations to political organisations & political expenditure (Ordinary resolution)The 2006 Act requires companies to obtain shareholder approval before they can make donations to EU political organisations or incur EU political expenditure. However, the company does not make and does not intend to make donations to political parties or independent election candidates, nor does it make any donations to EU political organisations or incur EU political expenditure. The definitions of political donations, political expenditure and political organisations used in the 2006 Act are very wide. In particular, the definition of political organisations may extend to bodies such as those concerned with policy review, law reform, the representation of the business community and special interest groups such as those concerned with the environment, which the company and its subsidiaries might wish to support. As a result, the definitions may cover legitimate business activities not in the ordinary sense considered to be political donations or political expenditure. Such activities are not designed to support any political party or independent election candidate or to influence public support for any political party or independent election candidate. The authority which the Board is requesting is a precautionary measure to ensure that the company and its subsidiaries do not inadvertently breach the 2006 Act.

No payments have ever been made under this authority, which is specific to political donations and political expenditure in relation to any and all EU member states. In addition, with effect from 1st January 2009, to ensure a consistent approach to political contributions across the GSK group, the company introduced a global policy to voluntarily stop all political contributions. In the past, GSK, in common with many companies and in full compliance with local laws, has made a number of political contributions in countries outside the EU, such as the US and Canada. Further details of the payments made in 2008 can be found in the 2008 Annual Report.

Resolution 11 – Authority to allot shares (Ordinary resolution)Paragraph (a) of this resolution gives the Directors authority to allot unissued share capital with a nominal value of up to £432,359,137 (representing 1,729,436,548 Ordinary shares of 25 pence each) which, as at 24th February 2009, being the last practicable date prior to the publication of this Notice, represented just less than one-third of the issued share capital of the company (excluding treasury shares).

In line with recent guidance issued by the Association of British Insurers, paragraph (b) of this resolution gives the Directors authority to allot Ordinary shares in connection with a rights issue in favour of ordinary shareholders with a nominal value of up to £864,692,333 (representing 3,458,769,332 Ordinary shares of 25 pence each), as reduced by the nominal amount of any shares issued under paragraph (a) of this resolution. This amount (before any reduction) represents just less than two-thirds of the issued ordinary share capital of the company (excluding treasury shares) as at 24th February 2009, being the last practicable date prior to publication of this Notice.

11




The authorities sought under paragraphs (a) and (b) of this resolution will expire at the earlier of 30th June 2010 (being the last date by which the company must hold an AGM in 2010) or the conclusion of the AGM of the company held in 2010.

The Directors have no present intention to exercise either of the authorities sought under this resolution, except, under paragraph (a), to fulfil the company’s obligations under its executive and employee share plans.

Resolution 12 – Disapplication of pre-emption rights (Special resolution)This resolution gives the Directors authority to allot Ordinary shares (including any Ordinary shares which the company has purchased and elected to hold as treasury shares) for cash without first offering them to existing shareholders in proportion to their existing shareholdings and is limited to allotments in connection with rights issues or other pre-emptive offers, or otherwise up to a maximum nominal amount of £64,854,519 (representing 259,418,076 Ordinary shares of 25 pence each) which, as at 24th February 2009, being the last practicable date prior to the publication of this Notice, represented just less than 5% of the company’s issued share capital (excluding treasury shares). In respect of this aggregate nominal amount, the Directors confirm their intention to follow the provisions of the Pre-Emption Group’s Statement of Principles regarding cumulative usage of authorities within a rolling three-year period where the Principles provide that usage in excess of 7.5% should not take place without prior consultation with shareholders.

This authority will expire at the earlier of 30th June 2010 or the conclusion of the AGM of the company in 2010. This authority is granted under section 95 of the 1985 Act and is a standard annual resolution for most UK companies listed on the London Stock Exchange.

Resolution 13 – Purchase of own shares by the company (Special resolution)This resolution seeks authority for the company to make market purchases of its own Ordinary shares. Purchases of the company’s own shares will be made only after considering the effects on earnings per share and the benefits for shareholders generally. The company does not expect to make any significant repurchases in 2009. You are asked to consent to the purchase by the company of up to a maximum of 518,836,153 Ordinary shares, which, as at 24th February 2009 being the last practicable date prior to the publication of this Notice, represented just less than 10% of the company’s issued share capital (excluding treasury shares). This authority will expire at the end of the next AGM or, if earlier, on 30th June 2010. The maximum price which may be paid for an Ordinary share will be the higher of (i) 105% of the average middle market quotations for the five business days preceding the purchase and (ii) the higher of the price of the last independent trade and the highest current independent bid at the time the purchase is carried out. The minimum price which may be paid for an Ordinary share is its nominal value of 25p. The company may either retain any of its own shares which it has purchased as treasury shares with a view to possible re-issue at a future date, or cancel them. The company would consider holding any of its own shares that it purchases pursuant to the authority conferred by this resolution as treasury shares. This would give the company the ability to re-issue treasury shares quickly and cost-effectively, and would provide the company with additional flexibility in the management of its capital base.

The total number of options over Ordinary shares outstanding as at 24th February 2009, being the last practicable date prior to the publication of this Notice, was approximately 319 million representing approximately 6.15% of the issued share capital (excluding treasury shares). If the authority to buy back shares under this resolution were exercised in full, the total number of options to subscribe for Ordinary shares outstanding as at 24th February

12

Explanatory Notes to Business of the Annual General Meeting : continued




2009 would, assuming no further Ordinary shares are issued, represent 6.83% of the issued share capital (excluding treasury shares). The total number of options as set out above includes options granted by the company and legacy companies, Glaxo Wellcome plc and SmithKline Beecham plc. The obligations of the company in respect of Ordinary shares issuable under options outstanding are partly hedged by Ordinary shares held by the Group’s employee share ownership trusts, details of which can be found in the 2008 Annual Report which is available on the company’s website at www.gsk.com.

The company’s current intention is to satisfy the exercise of outstanding options over approximately 90 million Ordinary shares, representing approximately 1.74% of the issued share capital of the company (excluding treasury shares), by the release of Ordinary shares from the Group’s employee share ownership trusts, which on 24th February 2009 held approximately 157 million Ordinary shares, and the remainder by the issue of new Ordinary shares.

Resolution 14 – Exemption from statement of the name of the senior statutory auditor in published copies of the Auditors’ reports (Ordinary resolution)For financial years beginning on or after 6th April 2008, every copy of the Auditors’ reports to the company’s shareholders on the Annual Report and other auditable reports that is or are published by or on behalf of the company must state, where the company’s Auditors are a firm, the name of the person who signed them in his or her own name as senior statutory auditor in relation to the audit, for and on behalf of the Auditors. However, the 2006 Act provides an exemption from this requirement if the company considers on reasonable grounds that statement of the individual’s name would create or be likely to create a serious risk that they or any other person would be subject to violence or intimidation. For many years, the company and its legacy companies, together with its employees, have been the focus of protests by various animal protection groups, some of which have engaged in aggressive, abusive and hostile acts. The Directors therefore believe that it is appropriate that the company should seek to utilise the confidentiality afforded to the senior statutory auditor of the company’s Auditors under the new legislation. This resolution therefore seeks shareholder approval for the Auditors’ reports for the financial year ending 31st December 2009 to omit the name of the senior statutory auditor. The company would give notice to the Secretary of State in the appropriate format if this resolution is passed.

Resolution 15 – Reduced notice of a general meeting other than an annual general meeting (Special resolution)This resolution seeks shareholder approval to continue to be able to call general meetings other than AGMs on not less than 14 days’ notice as currently permitted under the 2006 Act.

The UK Government is proposing to bring into force on 3rd August 2009 regulations to implement the EU Shareholder Rights Directive (the “Directive”) on the exercise of certain rights of shareholders in listed companies. The regulations implementing the Directive will require that listed companies provide 21 days’ notice of a general meeting. However, the UK Government will be taking advantage of an option within the Directive, which will allow companies to retain a 14 clear days’ notice period for calling a general meeting (other than an AGM, which must continue to be called on notice of at least 21 clear days) if two conditions are met. These are (a) that shareholders have, at the immediately preceding AGM or at a general meeting held since the immediately preceding AGM, passed a resolution to approve the holding of general meetings on not less than 14 clear days’ notice; and (b) that the company offers the facility for shareholders to vote by electronic means accessible to all shareholders.

13




The Government has indicated that companies can pass the type of resolution referred to at (a) above in advance of the regulations being finalised, in order to be able to continue, after August 2009, to take advantage of the shorter notice period once the regulations come into force, subject to meeting the requirements for electronic voting under the Directive. The Government has recommended that companies seeking to propose this resolution in advance of the regulations being finalised should consider doing so as a special resolution.

If approved, Resolution 15 will enable the company to retain maximum flexibility to seek shareholder approval for any future change or transaction that may require such approval. The approval will be effective until the company’s next AGM, when it is intended that a similar resolution will be proposed.

Resolutions 16, 17 and 18 – Approval of the adoption of the GlaxoSmithKline 2009 Performance Share Plan, the GlaxoSmithKline 2009 Share Option Plan and the GlaxoSmithKline 2009 Deferred Annual Bonus Plan (Ordinary resolutions)Shareholders are asked to approve the adoption of the rules of the GlaxoSmithKline 2009 Performance Share Plan, the GlaxoSmithKline 2009 Share Option Plan and the GlaxoSmithKline 2009 Deferred Annual Bonus Plan, (together, the “Plans”) to replace the company’s existing plans which expire in 2010. These plans have been designed to deliver the new Remuneration Policy which is set out in the company’s Annual Report. The principal terms of the Plans are set out on the next pages.

1 Common features

The following features are common to the Plans.

1.1 Operation

The company’s Remuneration Committee is responsible for granting awards to and operating the Plans with regard to Executive Directors and Corporate Executive Team members (together, the “Executives”). The Board, or a duly authorised committee of the Board (which may be the Remuneration Committee), is responsible for granting awards to and operating the Plans with regard to all other employees.

1.2 Eligibility

Employees and Executive Directors of the company and any subsidiaries of the company (as designated by the Directors) are eligible to participate in the Plans.

1.3 Timing of operation

Awards will normally be granted under the Plans within 42 days of the announcement of the company’s results for any period but may be granted at other times if the Remuneration Committee considers the circumstances to be exceptional. However, at all times the grant of awards will be subject to the terms of the Model Code for transactions in securities by Directors and the company’s share dealing code. Subject to shareholder approval, the first awards under the GlaxoSmithKline 2009 Performance Share Plan are expected to be granted shortly after the adoption of the Plans at the AGM.

1.4 Grant of awards

Awards may be satisfied with newly issued shares, treasury shares or shares purchased in the market in conjunction with an employee benefit trust established by the company.

At the discretion of the Remuneration Committee, awards may be granted subject to the participant agreeing to satisfy the employer’s social security liabilities arising on the award.

14





1.5 Dilution limits

In any 10 year period, not more than 10% of the issued ordinary share capital of the company may be issued or issuable under the Plans and all other employee share plans adopted by the company.

In addition, in any 10 year period, not more than 5% of the issued ordinary share capital of the company may be issued or issuable under the Plans and all other discretionary employee share plans adopted by the company.

These limits do not include awards and options which have lapsed or been surrendered.

So long as this is required under the guidelines of the Association of British Insurers’ Investment Committee, the company will include in this calculation any treasury shares used to satisfy awards and options granted under the Plans.

1.6 Variation in share capital

Awards may be adjusted at the discretion of the Remuneration Committee following any rights issue, special dividend, de-merger, consolidation, sub-division, reduction or other variation in the share capital of the company.

1.7 Issue of shares

Any shares issued under the Plans will rank equally with shares of the same class in issue on the date of allotment except in respect of rights arising by reference to a prior record date.

1.8 Amendments

The Remuneration Committee may amend the Plans as it considers appropriate. However, shareholder approval will be required to amend certain provisions to the advantage of participants. These provisions relate to: eligibility, individual and plan limits, adjustment of awards on a variation in the company’s share capital and the amendment powers. Shareholder approval is not required for changes that are minor in nature or for changes intended to benefit the administration of the Plans, or to comply with or take account of existing or proposed legislation or any changes in legislation or to secure favourable tax treatment for the company, members of its group or participants.

1.9 Other features

Awards granted under the Plans are not pensionable and are not generally transferable (except in the case of death).

1.10 Termination

The Plans may be terminated by the Remuneration Committee at any time. Awards may not be granted after the tenth anniversary of the approval of the Plans by shareholders.

1.11 Forfeiture

The Remuneration Committee may reduce grant levels or outstanding awards or options granted under the Plans that have not yet vested or been exercised (with the exception of Invested Shares granted under the Deferred Annual Bonus Plan), if it is determined that a participant has engaged in conduct which is contrary to the legitimate expectations of the company for an employee in the participant’s position.

15




2 GlaxoSmithKline 2009 Performance Share Plan

2.1 Outline

The Remuneration Committee may grant conditional share awards or nil-cost options to selected eligible employees (“Awards”).

2.2 Individual limits

The aggregate value (at the time of the grant) of shares subject to all Awards granted to a participant under this plan in any year will not exceed 6 times the participant’s base salary, except in exceptional circumstances. The value of the Awards to be granted to the Chief Executive Officer in 2009 will be 5 times his base salary. In applying the plan limit, no account will be taken of shares representing notional dividends on Awards or shares which have been awarded to ensure that a participant is not financially disadvantaged if he or she agrees to satisfy the employer’s social security liability in relation to his or her Award.

2.3 Performance condition

The Remuneration Committee will set performance conditions annually, which must normally be satisfied before an Award can vest. For Executives, the performance conditions will normally be measured over a period of at least three financial years. The Remuneration Committee may change a performance condition if there is a situation which causes it to consider that the changed performance condition would be a fairer measure of performance.

The performance conditions for Awards granted to Executives in 2009 will be based on relative Total Shareholder Return (“TSR”) over three financial years as to 30% of the Award, TSR over four financial years as to 30% of the Award and free cash flow targets as to 40% of the Award over three financial years. The performance period for Awards granted in 2009 will begin on 1st January 2009.

For the Awards made in 2009, TSR performance will be measured by comparing the TSR achieved by the company with that of a comparator group currently comprising the following 12 global pharmaceutical companies: Abbott Laboratories, AstraZeneca, Bristol-Myers Squibb, Eli Lilly, Johnson & Johnson, Merck, Novartis, Pfizer, Roche Holdings, Sanofi-Aventis, Schering-Plough and Wyeth. Awards will not vest if the company’s TSR performance is below median. If the company’s TSR performance is median, 30% of the Award will vest, with full vesting for upper quartile performance. Between these levels, Awards will vest proportionally.

If the free cash flow threshold is met, 25% of the Award will vest, with full vesting if the threshold is exceeded by the margin specified by the Remuneration Committee. Between these points, vesting will increase on a pro rata basis. If the threshold target is not met, no portion of the Award subject to free cash flow will vest. The free cash flow targets may be adjusted for material factors, which could distort free cash flow as a performance measure. These will typically include exchange rate movements and may include legal and major taxation settlements and special pension contributions, which could materially distort this calculation in either direction. The impact of any acquisition or divestment will be quantified and adjusted for at the time of the event.

It is the Remuneration Committee’s intention to disclose the targets for each Award in the announcement to the London Stock Exchange at the time the Award is made. For the Awards in 2009, the threshold free cash flow target will be £13.5 billion, with maximum vesting for £16 billion.

16





17

2.4 Acquisition of shares

A participant will normally only acquire the shares subject to Awards to the extent that the performance conditions have been satisfied and provided that the participant remains in employment. When shares are acquired, the participant may also receive additional shares (or an equal cash amount) which reflect reinvested dividends that would have been paid on the vested portion of the Award during the performance period.

2.5 Leaving employment

If an Executive leaves employment due to retirement or redundancy, Awards will normally vest on the original vesting date, subject to the satisfaction of the performance condition over the original period. Any Awards granted within 12 months of cessation will lapse on the date of cessation. The Committee may determine that any unvested Awards should lapse immediately, if the participant takes up employment with a competitor company during the performance period.

Alternatively, the Remuneration Committee may decide that on retirement or redundancy, Executives’ Awards will vest at the end of the financial year in which the cessation occurred or at another point that the Remuneration Committee decides at its discretion, normally taking account of performance to that point. In this case, the Committee may also adjust the number of shares which may be acquired to take account of the time the Executive was employed during the performance period.

If an Executive leaves employment due to death, ill-health, injury or disability, or the sale or transfer of the participant’s employing business, Awards will vest at the end of the financial year in which the cessation occurred or at another point that the Remuneration Committee decides at its discretion, normally taking into account performance to that time. The Committee may also adjust the number of shares which may be acquired to take account of the time the Executive was employed during the performance period.

Awards held by participants other than Executives who leave due to retirement or redundancy will normally vest at the end of the financial year in which the cessation occurred or at another point that the Remuneration Committee decides at its discretion, normally taking into account performance to that time. The Committee may also adjust the number of shares which may be acquired to take account of the time the participant was employed during the performance period.

Awards held by participants other than Executives who leave due to death, ill-health, injury or disability, or the sale or transfer of the participant’s employing business will vest at the end of the financial year in which the cessation occurred or at another point that the Remuneration Committee decides at its discretion, normally taking into account performance to that time. The Committee may also adjust the number of shares which may be acquired to take account of the time the participant was employed during the performance period.

If any participant (Executive or otherwise) leaves employment for any other reason, Awards will normally lapse.

2.6 Change of control, de-merger or other reorganisations

Generally, Awards will vest on a change of control taking into account performance to that point. Unless the Remuneration Committee decides otherwise, the number of shares which may be acquired will also be reduced to take account of the time the participant was employed during the performance period.




18


The Remuneration Committee has the discretion to allow or require rollover of Awards on a change of control or other corporate reorganisation. The new Awards will be subject to appropriate performance conditions. On a de-merger, if the Remuneration Committee so decides, Awards may be adjusted or allowed to vest.

3 GlaxoSmithKline 2009 Share Option Plan

3.1 Outline

Selected eligible employees may be granted market value options (“Options”) over the company’s shares or equity-settled Stock Appreciation Rights. The Option price will not be less than the market value of a share on the business day before the date of grant or the average market value over the three preceding business days.


Where a participant receives Options under the company’s 2009 Share Option Plan and Awards under the company’s 2009 Performance Share Plan in any year, it is currently intended that the expected value of Options granted to him or her in that year will not exceed 60% of the aggregate expected value of Options and Performance Share Plan Awards granted to him or her in that year. In applying this limit, no account will be taken of shares which have been awarded to ensure that a participant is not financially disadvantaged if he or she agrees to satisfy the employer’s social security liability in relation to the Options.

Where a participant is not granted Awards under the company’s 2009 Performance Share Plan, the annual Share Option Plan limit will be calculated on an equivalent basis to that which applies to the company’s 2009 Performance Share Plan.

It is the current intention that Options will not be granted to the Chief Executive Officer or Chief Financial Officer.


The Remuneration Committee may, and for Executives will, set a performance condition annually, and any such performance condition imposed must normally be satisfied before the exercise of an Option. The performance condition will normally be measured over a period of at least three financial years.

In line with previous option grants, the performance condition for any Options granted to Executives in 2009 is based on the company’s Earnings Per Share (“EPS”) relative to the Retail Prices Index (“RPI”). Options will not vest if compound EPS growth is less than RPI plus 3% per annum. If compound EPS growth is RPI plus 3% per annum Options will vest as to 30%, if it is RPI plus 4%, they will vest as to 65% and if it is RPI plus 5%, they will vest as to 85%. Full vesting will occur if compound EPS growth is at least RPI plus 6% per annum. In between these levels, Options will vest on a pro rata basis. The performance period for Options granted in 2009 to Executives will begin on 1st January 2009 and will be three financial years in respect of 50% of the award and four financial years in respect of the remaining 50% of the award.

3.4 Exercise of Options

Options will normally vest (become exercisable) no less than three years following the date of grant, subject to any performance condition being satisfied and to the participant remaining in employment.

In respect of the Options granted to Executives in 2009, subject to performance and remaining in employment, 50% of the Options will vest following the determination of the satisfaction of the performance condition over three financial years by the




19

Remuneration Committee and the remaining 50% following the determination of the performance condition over four financial years.

Options will normally lapse on the tenth anniversary of the grant date.


If an Executive leaves employment due to retirement or redundancy, Options will normally vest on the original vesting date, subject to the satisfaction of the performance condition over the original period. The Remuneration Committee may determine that any Options granted within 12 months of cessation will lapse on the date of cessation. The Committee may also determine that unvested Options will lapse immediately if the participant takes up employment with a competitor company prior to vesting.

Alternatively, the Remuneration Committee may decide on retirement or redundancy, that Options for Executives will vest at the end of the financial year in which the cessation occurred or at another point that the Remuneration Committee decides at its discretion, normally taking into account performance to that point.

If an Executive leaves employment due to death, ill-health, injury, disability or due to a sale or transfer of the participant’s employing business, Options will vest at the end of the financial year in which the cessation occurred or at another point that the Remuneration Committee decides at its discretion, normally taking into account performance to that point.

Options held by participants other than Executives who leave for any of the reasons described above will normally vest at the end of the financial year in which the cessation occurred or at such earlier point that the Remuneration Committee decides at its discretion.

In all leaver circumstances described above, vested Options may be exercised up to the later of 48 months from grant, 24 months from the cessation of employment and six months from the normal vesting date (apart from on death, in which case they will be exercisable for 12 months from the date of death). If not exercised within the specified period, the Options will lapse.

If any participant (Executive or otherwise) leaves employment for any other reason, unvested Options will normally lapse.


Generally, Options will vest on a change of control taking into account performance to that point, and the level of vesting may be adjusted if the Remuneration Committee considers it appropriate. Vested Options may be exercised for six weeks and if not exercised within this period, the Options will lapse.

The Remuneration Committee has the discretion to allow or require rollover of Options on a change of control or other corporate reorganisation. The new Options will be subject to equivalent performance conditions, if any. On a de-merger, if the Remuneration Committee so decides, Options may be adjusted or allowed to vest.

4 GlaxoSmithKline 2009 Deferred Annual Bonus Plan4.1 Outline

Selected eligible employees may be invited to invest an element of their pre-tax or net annual bonus in the company’s shares (“Invested Shares”). Participants will then be granted an award of matching shares (“Matching Shares”). Such awards may take the form of a conditional share award or a nil-cost option (or other forms with




an economically equivalent value). The receipt of Matching Shares is normally subject to the satisfaction of a performance condition, continued employment and the continued holding of the Invested Shares until the point when the Matching Shares vest. Executives who did not receive option grants in 2009 will be invited to invest up to 50% of their pre-tax or net annual bonus in the plan.


Matching Shares will be calculated on the basis of a maximum of one share for each share invested by the participant (determined on a pre-tax basis).


The Remuneration Committee will set a performance condition for the Matching Shares which must normally be satisfied before Matching Shares can vest.

The performance condition will be measured over a period of at least three financial years. The performance condition for Matching Shares granted in respect of the 2009 bonus will be based on TSR, and will be the same as the TSR performance condition for PSP Awards, as described on page 16 above. The TSR performance condition for all Matching Shares will be measured over three financial years.

4.4 Acquisition of shares

A participant will only acquire the Matching Shares if they vest, to the extent that the performance condition has been satisfied and provided that the participant remains in employment for that period. On release, the participant will also receive shares or a cash amount with a value equal to reinvested dividends that would have been paid on those shares during the performance period.

Invested Shares will be released at the end of the performance period.


Invested Shares will be released when a participant is no longer eligible to receive Matching Shares in respect of those Invested Shares, whatever the reason.

Matching Shares held by leavers will be treated as described on page 17 in relation to Awards granted under the company’s 2009 Performance Share Plan.


Invested Shares will be released on a change of control unless Matching Shares are exchanged as described below.

Generally, Matching Shares will vest on a change of control taking into account performance to that point. Unless the Remuneration Committee decides otherwise, the number of shares which may be acquired will also be reduced to take account of the time the Executive was employed during the performance period.

The Remuneration Committee has the discretion to allow or require rollover of Matching Shares on a change of control or other corporate reorganisation. The new Matching Shares will be subject to equivalent performance conditions, if any. On a de-merger, if the Remuneration Committee so decides, Matching Shares may be adjusted or allowed to vest. In this case, Invested Shares will not be released but will be exchanged for shares in the acquiring company.

20





Issued share capitalAll references to the company’s ‘issued share capital’ in the Explanatory Notes above are to the company’s issued share capital as at 24th February 2009, which was 5,188,361,535 Ordinary shares, excluding any Ordinary shares held as treasury shares. As at 24th February 2009, the company held 474,194,158 Ordinary shares as treasury shares, representing 9.14% of the company’s issued share capital (excluding treasury shares) as at that date. As at 24th February 2009, the total number of voting rights in the company was 5,188,361,535.

The following information is provided in respect of section 992 Companies Act 2006:

Share capital and controlAs at 31st December 2008, the company’s authorised share capital comprised £2,500,000,000, divided into 10,000,000,000 Ordinary shares of 25p each nominal value, representing 100% of the total authorised share capital. On 31st December 2008 there were 5,187,122,079 Ordinary shares in issue, excluding 474,194,158 treasury shares (which represented 9.14% of the total issued capital).

GSK’s shares are listed on the London Stock Exchange and are also quoted on the New York Stock Exchange in the form of American Depositary shares (“ADSs”). Each ADS represents two Ordinary shares.

The holders of Ordinary shares are entitled to receive dividends, when declared, the company’s report and accounts, to attend and speak at General Meetings of the company, to appoint proxies and to exercise voting rights.

There are no restrictions on transfer, or limitations on the holding of Ordinary shares and no requirements to obtain prior approval to any transfers. No Ordinary shares carry any special rights with regard to control of the company and there are no restrictions on voting rights. Major shareholders have the same voting rights per share as all other shareholders. There are no known arrangements under which financial rights are held by a person other than the holder of the shares and no known agreements or restrictions on share transfers or on voting rights.

Shares acquired through GSK share schemes and plans rank equally with the other shares in issue and have no special rights. The trustees of the company’s Employee Share Ownership Plan (“ESOP”) trusts have waived their rights to dividends on shares held by the ESOP trusts.

Change of controlThe company is not party to any significant agreements that would take effect, alter or terminate upon a change of control following a takeover bid.

The company does not have agreements with any Director or Officer that would provide compensation for loss of office or employment resulting from a takeover, except that provisions of the company’s share plans may cause options and awards granted under such plans to vest on a takeover.

Interests in voting rightsOther than as stated below, as far as the company is aware, there are no persons with significant direct or indirect holdings in the company. Information provided to the company pursuant to the Financial Services Authority’s (“FSA”) Disclosure and Transparency Rules (“DTRs”) is published on a Regulatory Information Service and on the company’s website.

21




At 24th February 2009, the company had received notifications in accordance with the FSA’s DTRs of the following notifiable interests, in the voting rights in the company’s issued share capital: No. of Percentage of issued shares capital (%)*Barclays PLC 186,518,653 3.59

* Percentage of Ordinary shares in issue, excluding treasury shares as at 24th February 2009.

The Bank of New York Mellon is the Depositary for the company’s ADRs, which are listed on the New York Stock Exchange. Ordinary shares representing the company’s ADR program, which are managed by the Depositary, are registered in the name of BNY (Nominees) Limited.

The company has not acquired or disposed of any interests in its own shares, other than in connection with the company’s share buy-back programme. Details of the shares purchased, cancelled and held in treasury are given in the Annual Report.

Directors and OfficersThe interests of Directors and Officers and their connected persons in the issued share capital of the company are given in the Annual Report.

The rules about the appointment and replacement of Directors are contained in the company’s Articles of Association. The company’s Articles must be approved by shareholders in accordance with the legislation in force from time to time.

The Articles provide that Directors may be appointed by an ordinary resolution of the members or by a resolution of the Directors, provided that, in the latter instance, a Director appointed in this way retires at the first AGM following his appointment.

The Articles also require that at every AGM certain of our current Directors retire by rotation, and detail the circumstances in which and how they may be re-elected. The company’s members may remove a Director by passing an ordinary resolution of which special notice has been given. A Director will automatically cease to be a Director if (i) he becomes bankrupt or compounds with his creditors generally, (ii) he is or has been suffering from mental ill health and the Board resolves that his office is vacated, (iii) he has missed Directors’ meetings for a continuous period of six months without permission and the Board resolves that he shall cease to be a Director, (iv) he is prohibited from being a Director by law, (v) he ceases to be a Director by virtue of UK companies legislation or is removed from office pursuant to the company’s Articles of Association, (vi) he resigns, (vii) he offers to resign and the Board accepts that offer, or (viii) his resignation is requested by all of the other Directors and all of the other Directors are not less than three in number.

The company’s Articles may be amended by a special resolution of the members.

The powers of the Directors are determined by UK legislation and the company’s Memorandum and Articles of Association, available on www.gsk.com. As provided in those Articles, the Directors may exercise all the company’s powers provided that the Articles or applicable legislation do not stipulate that any such powers must be exercised by the members. The Directors have been authorised to issue and allot Ordinary shares, and have authority to make market purchases of shares. Renewal of these authorities is sought from shareholders at each AGM. Any shares purchased may be cancelled or held as treasury shares.

22




GlaxoSmithKlineInformation on how to voteVoting using ShareviewIf you have a Shareview portfolio, you may register your vote electronically by visiting www.shareview.co.uk, logging into your account and following the instructions provided.

Voting using SharevoteYou may register your vote electronically by visiting www.sharevote.co.uk and following the instructions provided.

Voting using CREST’s electronic proxy appointment serviceIf you hold your shares in uncertificated form in CREST you may use the electronic proxy appointment service operated by CREST to appoint a proxy and register your vote. CREST members who wish to appoint a proxy or proxies by utilising the CREST electronic proxy appointment service may do so for the AGM to be held on Wednesday, 20th May 2009 and any adjournment(s) thereof by utilising the procedures described in the CREST Manual. CREST Personal Members or other CREST sponsored members, and those CREST members who have appointed a voting service provider(s), should refer to their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf.

In order for a proxy appointment or instruction made using the CREST service to be valid, the appropriate CREST message (a “CREST Proxy Instruction”) must be properly authenticated in accordance with Euroclear’s specifications and must contain the information required for such instructions, as described in the CREST Manual. The message, regardless of whether it constitutes the appointment of a proxy or an instruction to a previously appointed proxy, must be transmitted so as to be received by the issuer’s agent, Equiniti ID RA19 by 2.30pm on Monday, 18th May 2009 in order to be valid.

For this purpose, the time of receipt will be taken to be the time (as determined by the timestamp applied to the message by the CREST Applications Host) from which the issuer’s agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST. After this time any change of instructions to proxies appointed through CREST should be communicated to the appointee through other means.

CREST members and, where applicable, their CREST sponsors or voting service providers should note that Euroclear does not make available special procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply in relation to the input of CREST Proxy Instructions.

It is the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST Personal Member or sponsored member or has appointed (a) voting service provider(s), to procure that his CREST sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting service providers are referred, in particular, to those sections of the CREST Manual concerning practical limitations of the CREST system and timings.

The company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.

23




GlaxoSmithKline plc980 Great West RoadBrentfordMiddlesexTW8 9GS




GlaxoSmithKline

1 © Access to Medicine Foundation 2008

Company Profile

Ticker: GSK-LN GlaxoSmithKline UK

2007 Revenues: USD 44,640 million 32% of revenues are generated in Europe, 45% in the US and 23% in the rest of the world.

Product Pipeline For Neglected Diseases

TB: In collaboration with TB Alliance: Bacterial Topoisomerase (lead optimized), Pleuromutilins (lead optimized), inhA Inhibitors (lead identified), antimicrobial screening program (discovery). In collaboration with Aeras Global TB vaccine Foundation: vaccine (Mtb72F/AS02A) in phase 1. Malaria: In collaboration with MMV: 1. n-tert butyl isoquine GSK 369796 (preclinical) 2. 4(1H) pyridones back-ups (Preclinical) 3. Falcipains (Cysteine Protease) (lead optimized) 4. Fatty Avid Bionsynthesis (lead optimized) In collaboration with W Reed: Tafenoquine/etaquine (phase 3) The company itself: Antimicrobial Screening Program (discovery) + Vaccine with the Malaria Vaccine Initiative: RTS, S/AS02A ( phase 3) Chagas disease, human African trypanosomiasis and Leishmaniasis in collaboration with DNDi Leishmaniasis: the company itself: Sitamaquine (WR6026) (phase 2b) Dengue: Vaccine (phase2) in collaboration with Pediatric Dengue Vaccine Initiative

Existing Commercial Products:

HIV, Malaria, Respiratory, Central nervous system , Metabolic Oncology and emesis, Cardiovascular and urogenital, Skin disease, Arthritis, Gastrointestinal Vaccine: Cervical cancer, Chickenpox, Diphtheria, Hepatitis A and B, Influenza, Measles, Meningitis, Mumps, Polio, Rotavirus, Rubella, Tetanus, Typhoid, Whooping cough (Pertussis), Pneumonia, otitis media and bacterial meningitis

Company Rank 1 Company Score 4.53

Appendix F: Access to Medicine Index Report


Source: Retrieved September 14, 2009, from www.atmindex.org

GlaxoSmithKline


0 1 2 3 4 5

Philanthropy

Drug donations

Pricing

Capacity

Patenting

R&D

Influence

Management

Appendix F: Access to Medicine Index Report (cont.)



GlaxoSmithKline


A. Access to Medicines Management (20%)

Weight Indicators Scores

20% A1. Governance: The company has a governance system that includes direct board level responsibility and accountability for its ATMs strategy.

5

20%

A2. Policy and Disclosure: The company has a public global policy in place, in which it explains its rationale for ATMs, its contents and details its specific objectives.

5

25%

A3. Systems and Reporting: The company has a management system, including quantitative targets, to implement, monitor and report on its ATMs strategy.

5

25% A4. Stakeholder Input: The company has a mechanism for stakeholder engagement which inputs into ATMs management.

5

10% A5. The company has globally applicable ethical business practices and marketing policies that conform to appropriate standards.

5

Company Rank 1 Company Score 5

Comment GSK is a clear leader in access to medicines (ATMs). The group has a global ATMs policy that is governed through a clear management system, with accountability at the board level. GSK has a wide range of relevant ATMs programs including R&D investment into neglected diseases and the global disease burden, an equitable pricing policy, voluntary licensing, drug donations and philanthropic activities. GSK articulates the business case for ATMs mentioning "ethical, reputational and commercial reasons" for addressing the ATMs issue. In particular, GSK considers that addressing ATMs issues will help attract and retain highly skilled employees, maintain the intellectual property rights system, and secure long-term business opportunities in the developing world. GSK's reporting is very detailed. The company clearly states its long-term objectives and has defined a wide range of relevant key performance indicators to measure the impact of its activities and report on progress. GSK also relies on a third party to certify the accuracy of the information disclosed in the CSR report and that the ATMs section addresses the material aspects of ATMs as expected by GSK's stakeholders. Regarding stakeholder involvement, GSK maintains regular communication with relevant stakeholders on ATMs issues, and in particular in 2007 the discussions focused on R&D for neglected diseases, improving access to HIV drugs and improving access in middle-income countries. The "Tearing Down the Barriers" concept is a clear example of how stakeholders input into the company ATMs strategy (see equitable pricing for more details on this concept). GSK uses various means to communicate internally on ATMs. While the company has not come up with an indicator to measure the impact of its ATMs approach on employee morale, GSK recognizes its value. When interviewed by Innovest, the company mentioned that when traveling around the company the new CEO informally asked employees what they like about GSK and their first response was the commitment towards the developing world including R&D programs, pricing approaches, and community involvement.




GlaxoSmithKline


B. Public Policy Influence & Advocacy (10%)


5% B1. The company has a position on public policy advocacy and transparency.

5

20% B2. The company and subsidiaries disclose major public policy positions at regional, national and international levels related to the ATMs debate.

5

20%

B3. The company and subsidiaries actively advocate health reforms that foster ATMs and policies that would result in improvements in public health.

5

40%

B4. The company annually discloses which individuals, patient associations, political parties, trade associations and academic departments it supports with which it might advocate on public policy positions and practices; at a regional, national and international level.

4

15% B5. The company demonstrates a process of board approval of the approach to public policy advocacy, its transparency and reporting.

5


Comment GSK recognizes stakeholders’ concerns about lobbying by pharmaceutical companies and therefore issues a clear commitment towards transparency in public policy advocacy and lobbying. Like its peers, GSK lobbies policy makers and stakeholders to shape public health policy and ATMs. However, compared to its peers in the sector, GSK discloses information on advocacy activities undertaken by the company in 2007. It mentions examples like urging the G8 to continue making healthcare in the developing world a major agenda item, working with UK Department for International Development (DFID) on its Medicines Transparency Alliance (MeTA), providing evidence to the EU Parliament’s Committee on International Trade to encourage ratification of the WTO compulsory licensing for export protocol etc. GSK also states its position on major ATMs debates like the issuance of compulsory licenses by the Thai government or the intellectual property (IP) system in India. GSK recognizes that compulsory licenses are a legitimate option but calls for more dialogue with the Thai government before a license is issued. As for India, GSK thinks that developing an IP system similar to the European or American standards would help foster innovation to the benefit of patients and the Indian economy as a whole. GSK adds that it is working on an equitable pricing policy to help facilitate ATMs to those in need in India; however, the company maintains that poverty and a lack of healthcare infrastructure are the main barriers, not prices. Additionally, advocacy is a key component of several of the company's community programs, notably malaria and Lymphatic Filariasis (LF). Regarding industry associations, GSK is a member of several industry organizations, but the company states that it will not participate in advocacy activity, if it disagrees with industry positions. Commendably, GSK also mentions examples of positions it wants to pursue within the industry and in particular a code of good practices on relationships with patient organizations. GSK has set more stringent standards for itself with regards to patient organizations and was the first European company in 2007 to publish information on all its work with European patient groups including details of the funding received. In 2008, GSK extended the scope of disclosure to include international support.




GlaxoSmithKline


GSK also complies with legal requirements to report on lobbying expenses and it spent USD 8.24 million in federal lobbying activities in the US during 2007. Lastly, GSK has developed an Employee Guide to Business Conduct which commits employees to acting with honesty and integrity in their lobbying activities. A Corporate Executive Team reviews the company's advocacy activities.




GlaxoSmithKline


C. R&D that Reflects both the Global Disease Burden and Neglected Diseases (20%)


5% C1. The company has a policy on R&D investment that reflects both the global disease burden and neglected diseases.

5

30%

C2. The company provides evidence of in-house investment in R&D into new treatments for neglected diseases.

5

40%

C3. The company with in-house investment in R&D into new treatments for neglected diseases provides evidence of partnership with groups with developing-country health expertise, such as product development public-private partnerships, academic institutions and/or the World Health Organization.

5

25%

C4. The company shows temporal evidence that its research programs into both the global disease burden and neglected diseases consider research into existing medicines and formulations suitable for use in developing and least developed countries and for affected patient groups.

5


Comment GSK is a leader in R&D for neglected diseases. The company is involved in R&D for new treatments for malaria, TB, leishmaniasis, sleeping sickness and Chagas disease and is investing in vaccines for AIDS, TB, dengue fever and Malaria. A third of its vaccine pipeline is for diseases of the developing world. In 2008, GSK had 12 ongoing clinical programs, seven of which were focused on neglected diseases. The company has both in-house and collaborative R&D. GSK has a dedicated site called, The Diseases of the Developing World Drug Discovery Centre at Tres Cantos. The R&D center employs 105 scientists that are solely dedicated to the discovery of new medicines for neglected diseases with a special focus on malaria and TB. The TB Alliance supports 25 full-time scientists at Tres Cantos, while GSK contributes a matching number of staff and remaining overhead costs. The Medicines for Malaria Venture (MMV) is subsidizing 30 scientists at the Tres Cantos facility and also provides input from its expert scientific Advisory committee. A similar group exists in the vaccines organization based in Belgium. GSK does not expect to make profit on new treatments for neglected diseases and therefore works in partnerships to share the R&D costs and ensure affordable prices of new treatments for poor patients in the developing world. In the area of TB, GSK and the TB Alliance announced the renewal of their partnerships for drug discovery in 2008. GSK is also collaborating with the Aeras Global TB Vaccine Foundation to develop a candidate vaccine against TB. In the area of malaria, GSK is partnering with MMV on new treatments and is internally working on a candidate malaria vaccine for children, which is in phase 2 clinical trial in Africa. In the area of leishmaniasis, sleeping sickness and Chagas disease, GSK has recently entered into a partnership with DNDi. GSK is also funding the development of a new once-a-day oral treatment for visceral leishmaniasis. This example clearly reflects GSK's commitment to considering developing country context when researching on a new treatment. GSK emphasizes factors such as heat and humidity and easy to use to ensure appropriate use in the developing world. GSK has been working on a malaria vaccine for over 20 years and have invested over USD300 million to date. A pivotal Phase III trial is now planned, which, if successful, could result in submission to regulatory authorities in 2011.




GlaxoSmithKline


D. Patents & Licensing (10%) Weight Indicators Scores

60%

D1. The company demonstrates the existence of, and discloses the terms of, non-exclusive voluntary license agreements to increase ATMs in developing countries.

5

40%

D2. The company publicly commits itself to respecting the right of developing countries to use the provisions in the TRIPS agreement.

2


Comment Like its peers, GSK considers that intellectual property rights are essential to boost innovation and are not barriers to ATMs. Commendably, GSK demonstrates its willingness to use pathways to protect its discoveries while improving access to its HIV drugs. Since 2001, the company has entered into eight voluntary licenses with local companies in Africa. These practices are successful as licensees supplied 183 million tablets of their versions of Epivir and Combivir to Africa in 2007. This represents a more than 50% growth over 2006. GSK also granted a voluntary license to Simcere, a Chinese manufacturer, giving it the right to manufacture and sell zanamivir, an antiviral for the treatment of flu, in China, and to sell in a number of other countries including all 50 of the least-developed countries (LDCs). In August 2007, GSK also agreed to enable a Canadian company, Apotex, to manufacture a generic fixed-dose combination ARV, containing two molecules over which GSK has patent rights, for the treatment of HIV/AIDS in Rwanda. This practice is in line with WTO 31F agreement. GSK clearly states its position on TRIPS with regards to Thailand and India (see Public Policy Influence & Advocacy) and withdrew a patent application for Combivir in India. In 1997, GSK had applied for a patent for Combivir in India. In August 2006, this application was the subject of protests by the civil society in India, but GSK had instructed the patent application to be withdrawn in a number of countries, including India, prior to this date. However there are allegations that the company suggested that the UK government should intervene with Thailand about its compulsory licensing policy. It also certainly persuaded Peter Mandelson to write to Thailand several times about their compulsory licensing policies.




GlaxoSmithKline


E. Drug Manufacturing, Distribution and Capability Advancement (15%)


20%

E1. The company demonstrates efforts to manufacture drugs to the highest quality standards.

5

35% E2. The company enters into technology transfer agreements with local companies in developing and least developed countries.

3

15%

E3. The company undertakes external activities to support the monitoring of drugs that reflect both the global disease burden and neglected diseases including participation in public private partnerships.

3

20% E4. The company has mechanisms in place to help prevent product diversion and to address counterfeiting, in collaboration with states.

4

10%

E5. The company demonstrates efforts to provide ATMs to its employees and their relatives in developing and least developed countries.

4


Comment GSK recognizes the inadequate healthcare infrastructure in developing and least-developed countries. Specifically with regard to voluntary licensing, GSK is aware of limited infrastructure and carefully selects licensees with adequate manufacturing capabilities allowing them to ensure long-term supply of good-quality drugs. However, other policies stating safeguards or measures to prevent manufacturing faults associated with poor infrastructure are not disclosed. GSK considers that drug manufacturing is the responsibility of the licensee and the local drug regulatory authority. Relating to technology transfers GSK signed a technology transfer agreement with the Brazilian government institute, Fiocruz, to produce Rotarix for the domestic market and manufacture Rotarix for GSK under contract for export to other developing countries. A similar agreement exists in Brazil for GSK's oral polio vaccine, Haemophilus influenzae type b (Hib) vaccine and measles, mumps and rubella vaccine. Additionally GSK has a drug discovery and clinical development collaboration covering a wide range of therapeutic areas with Ranbaxy in India. GSK also supports the INDOX program where they are training clinicians from 12 Indian oncology centers through collaboration with the University of Oxford. Indian clinicians spend some time at Oxford within the oncology department at the Radcliffe Hospital to supplement their online learning to bring them up to good clinical practice. GSK supports this operation through UKIERI. GSK is also proactive in improving pharmacovigilance systems in the developing world. In 2006, GSK organized a meeting on pharmacovigilance with African clinicians, African regulatory representatives and WHO representatives to identify challenges and share best practice between HIV and malaria pharmacovigilance. The company has operations in the developing world and has a policy to offer HIV drugs to all HIV positive employees and their families in countries where treatment is not available through the local healthcare system. GSK has implemented a program on HIV in the workplace, Positive Action At Work. Finally GSK has developed relevant programs to prevent product diversion and counterfeiting in collaboration with states, pharmacists, wholesalers and other pharmaceutical companies.




GlaxoSmithKline


F. Equitable Pricing (15%) Weight Indicators Scores

20%

F1. The company can demonstrate efforts to register treatments that reflect both the global disease burden and neglected diseases in developing and least developed countries.

4

50%

F2. The company has a policy to facilitate ATMs in developing and least developed countries through pricing mechanisms which include reporting on scope, pricing levels and pricing reviews.

5

10% F3. The company demonstrates that its discount schemes place the minimum administrative burden on the beneficiary health system.

5

20% F4. The company has a policy for the very poorest in countries with no public healthcare provision.

5


Comment GSK is committed to registering its drugs worldwide, and there is no evidence that the company is involved in registration problems. Commendably, GSK strives to speed up the registration process in the developing world by using mechanisms such as the European Medicines Agency (EMEA), Article 58. In 2007, GSK had products listed in 17 out of 27 therapeutic areas on the WHO Essential Medicines List. GSK has implemented a sound equitable pricing policy for its ARVs, anti-malarials and its vaccines. The company offers not-for-profit prices (nfp) to NGOs and the public sector in all LDCs and all of SSA and to all fully funded CCM projects of the Global Fund and to The US President's Emergency Plan for AIDS Relief (PEPFAR) projects. In SSA, GSK offers nfp to private employers who provide healthcare benefits to their uninsured staff. For middle-income countries (MIC) the company states that it will negotiate on a case-by-case basis. Since 1997 and the creation of its equitable pricing policy, GSK has decreased the price of its ARVs five times. The most recent announcement in February 2008 represented a 21% decrease on average across GSK’s ARVs pipeline. This price drop is due to improvements and efficiencies in manufacturing and supply, and reductions in the costs of active ingredients. Commendably, GSK discloses the number of drugs shipped at nfp in the developing world. The number has been reduced in 2007 due to the increase of supply by GSK's licensees (see Patents & Licensing). With regard to vaccines, for over 20 years, GSK has made its vaccine portfolio available at preferential prices to developing countries, using a tiered pricing system. Prices are linked to gross national incomes as defined by the World Bank as well as the size of an order and length of a particular supply contract. For the developing world prices can be as little as a tenth of those for developed countries. In 2007, GSK shipped 1.1 billion vaccines, 78% went to the developing world in collaboration with the WHO, GAVI, UNICEF and Pan-American Health organization. Thanks to a large volume of sales and long-term contracts, GSK has been able to reduce the price of the dose. Most noticeably, GSK is working on a concept called "Tearing Down the Barriers" to develop pricing mechanisms for private and public sector markets in MIC. The company is working on pilot projects including "tiered-pricing models within as well as between countries; a system to gauge the relationship between price and volume for selected products in targeted middle-income countries; and differential branding strategies in targeted middle-income countries." GSK is also considering pricing mechanisms for treatments for diabetes, lung cancer, cardiovascular diseases and bacterial infections as part of "Tearing Down the Barriers". Finally GSK is heavily involved in the developed world. In 2007, more than 484,000 US patients received GSK medicines worth almost USD 388 million compared with USD 370 million in 2006. GSK has also introduced discount cards in Bulgaria and Lithuania to enable poor people with chronic diseases to obtain prescription medicines at a discount price.




GlaxoSmithKline


G. Drug Donations (6%) Weight Indicators Scores

60% G1. The company has a policy that fully conforms to the WHO’s Guidelines for Drug Donations.

5

40%

G2.The company discloses the absolute volume of its drug donations and, to the extent possible, the number of treatments approved for patient use per year.

5


Comment GSK is committed to the development of long-term, sustainable solutions to the challenges relating to the availability of its medicines. Drug donations do not form a central component of the company's policies to increase sustainable ATMs. GSK has a drug donation policy that is in line with the WHO’s guidelines on drug donations. It recognizes that donations are relevant in emergency situation and/or as part of an eradication program. Therefore in 2007, GSK donated medicines valued at GBP 16 million to support disaster and humanitarian relief in 107 countries. In addition to donations of antibiotics and other essential medicines, as part of its partnership with the WHO's Global Alliance to Eliminate Lymphatic Filariasis, GSK has donated almost 750 million albendazole treatments since 1998. Additionally, in 2007, GSK announced its intention to donate 50 million doses of its pre-pandemic H5N1 flu vaccine to the WHO stockpile. In the event of an outbreak these can be rapidly distributed to the world’s poorest countries.




GlaxoSmithKline


H. Philanthropic Activities (4%) Weight Indicators Scores

100% H. The company has philanthropic programs related to ATMs not covered by any of the other criteria.

3


Comment In 2007, GSK's philanthropic activity was valued at GBP 282 million compared with GBP 302 million in 2006. This is equivalent to 3.8% of the company's pre-tax profits (3.9% in 2006). Through its Global Community Partnerships program, GSK funds community-led initiatives in over 100 countries around the world. GSK has a wide range of philanthropic programs and partnerships with a focus on health and education programs for under-served communities, and maintains robust relationships with its partners to ensure the effectiveness and the sustainability of these programs. As mentioned in the Drug Donations section, GSK is collaborating with the WHO's Global Alliance to Eliminate Lymphatic Filariasis. In 2007, the company gave GBP 1 million to support alliance partners and has employees helping on advocacy, research and education. Through its Positive Action program founded in 1992, GSK is also working on education, capacity building and support to local organizations on HIV/AIDS in 19 countries. It is also involved in advocacy on malaria in Europe and Africa. Lastly, GSK invests significantly in diarrheal disease with programs such as PHASE – hygiene and sanitation education program now running in 12 countries. This program shows favorable results as diarrhea rates have decreased by 40% in participating schools since the introduction of PHASE to schools in Kenya.




Your email

Breaking News on Drug Discovery

NEWS HEADLINES ALL NEWS ARTICLES PRODUCT NEWS PRODUCT INNOVATIONS Search

NEWS HEADLINESEmerging targetsTools and techniquesResearch management

ALL NEWS ARTICLES

October 2009September 2009Previous months

NEWS HEADLINES > RESEARCH MANAGEMENT

Share Text size Print Email this page News by email

GSK to strip down throughoutsourcing and offshoringBy Kirsty Barnes, 26-Oct-2007

Related topics: Research management, Drug discovery

GlaxoSmithKline (GSK) is planning to strip itself down closer to the barebones of the business through further outsourcing and offshoring, withhopes of making itself into a lean, mean, pharma machine.

The pharma heavyweight announced a sweeping restructuring plan in the formof an 'Operational Excellence' programme, designed to achieve savings of up to£700m (€1bn) by 2010 - 40 per cent of which will come from cutting down onmanufacturing sites and simplifying production processes and activities toreduce over capacity.

The cornerstones of this new programme are "persistent focus across allfunctions; a reduction in complexity, to be achieved by standardisation,consolidation, outsourcing and offshoring; and the exploitation of globalopportunities, in regard to procurement, skills, labour cost and arbitrage,"indicated GSK's CEO Dr J.P. Garnier.

As with most pharm firms in today's tough business climate, GSK has alreadybeen embracing outsourcing and offshoring to a certain extent in order totighten its purse strings, however, as more parts of the business are seeing thefruits of this strategy, the firm is stepping up its resolve in this regard.

"Basically, we are good at standardising and outsourcing when it's not a coreactivity that we want to manage ourselves. The arbitrage that is now availablethrough the global world in which we live is a phenomenal opportunity and weare taking full advantage," said Garnier during an analyst call covering GSK'sthird quarter results.

"We are now in a position to basically accelerate what we've been doing allalong," he said, without going into much further detail.

Garnier highlighted the business areas the firm has already been eitheroffshoring or doling out to third parties: clinical trials; human resources; IT,data management and shared financial services; and back-office functions. Inaddition, the firm has established a commercial analytics centre in India,conducted a rationalisation of its manufacturing network, and now undertakesglobal procurement across all functions.

The company's selling, general and administrative (SG&A) costs as apercentage of turnover, were 35.0 per cent in 2001, and now nine months into2007 they sit nearly six percentage points lower at 29.4 per cent.

"This is an example of those savings," said Garnier. "Even in the years wherewe didn't have significant growth in revenues, for instance, the year we lostPaxil and Augmentin, we were still able improve the SG&A ratio every time, andI expect this to continue in the future".

In terms of manufacturing, GSK has big plans for slimming down an alreadyshrinking in-house capability over the next three years.

In 2000 GSK owned 108 manufacturing sites, by 2006 this had been cut by 28to 80 and the firm is anticipating similar cuts by 2010. Meanwhile, in 2001 only9 per cent of the firm's primary active pharmaceutical ingredient (API) costswere outsourced, now that figure has jumped to 41 per cent and continues toclimb.

"We think that over the next three years we will be able to make significantinroads, which means first of all, that the percentage of our primary cost isgoing to be different in three years in terms of outsourcing," said Garnier,adding that the company had in an internal target in place for this.

"But, the point is that outsourcing is going to grow, particularly, when you lookat the share of the multi-sourced business we are still manufacturing and wehave a number of products going generic, which are now fair game for potentialoutsourcing. So, that's what it's all about with manufacturing, a more efficientnetwork at the end of the day."

However, GSK is only willing to relinquish control of production when it feelsproducts are established enough to warrant outsiders picking up some of thework:

"What we want is to protect our new products… We don't want anybody to havecontrol over our new products - for commercial reasons, but also for ethicalreasons. We don't want people to make our oncology products because if theygo wrong [or] out of stock, we are killing people", said Garnier.

As such, he indicated that the company wants to retain manufacturing controlof all new products until they become multi-sourced. After that time, the firm isless bothered as to whether products are made in house or by third parties, butwith Garnier's caveat that "if we can buy it cheaper than we can make it then of

LATEST AUDIO & VIDEO NEWS

Video season's greetings from Decision NewsMedia

LATEST NEWS HEADLINES

Small molecules still leading the way into the clinicMore pharmas implicated in Iraq bribery probeNew drug target leaves lung cancer cells alone,lonely and dyingA drug cocktail to bust brain tumoursIDM Pharma will cut jobs after Sanofi scrapsmelanoma collaboration

Free e-mail alerts

Please indicate your area of interest andreceive free alerts directly to your inbox

Assays and screening

Cell culture & Equipment

Chromatography

Compounds and consumables

Contract services (outsourcing)

Drug discovery

Genomics / Proteomics

Informatics & IT

Lab equipment & consumables

Separation and purification

Liquid handling and sample preparation

Liquid handling and automation

Production technologies

Analysis and instrumentation

Your email

GSK to strip down through outsourcing and offshoring http://www.drugresearcher.com/Research-management/GSK-to-strip-dow...

1 of 2 10/25/2009 2:22 PM

Appendix G: GSK Public Relation Tactic 1


Source: Retrieved October 25, 2009, from www.drugresearcher.com/Research-management/GSK-to-strip-down-through-outsourcing-and-offshoring

course that's what we're going to do."

A GSK spokesperson told Outsourcing-Pharma.com that at this point, thecompany cannot comment on who or where the potential beneficiaries of itsoutsourced work may be: "It will be decided on a case-by-case basis."

What is known is that job cuts are planned. The majority of details have notbeen finalised regarding which sites would be axed, nor how many employeescould be affected, although the company has said that troubled Cidra, PuertoRico, plant would be the first to fall to its axe, with news on a number of UKplants fast on its heels.

In terms of the effect this will have on the company's margin, Garnier toldanalysts that "clearly there will be significant improvement in terms of the costsaving program," although he warned that they may not materialise straightaway.

There are site closures and so some of the benefits of the cost savingprogramme will come toward the end of the [three year] cycle.

Speaking on the company's ongoing plans to reduce infrastructure and improveefficiency, Garnier said that the firm now has a chance to expand these efforts alittle bit beyond the classic areas of selling, general and administrative (SG&A)and manufacturing to also include research and development (R&D) and sales.

In terms of R&D, the company has plans to increase the number of externalcollaborations it undertakes as well as embrace the budget option that is Asia.

Only earlier this week, in fact, the company announced a multi-million dollardeal with Tolerx to develop and commercialise otelixizumab, a humanisedanti-CD3 monoclonal antibody. Many other such preclinical collaborative dealsare already in place with an array of specialist firms.

Meanwhile, in July, GSK announced its intention to plant itself in China andestablish a new R&D center to be based in Shanghai, which will eventually havefull global responsibility to create medicines for neurodegenerative disorders,and also be well positioned to tap into the vast number of Chinese PhDgraduates.

The company is already quite active on the Indian pharma scene and now hasits eye scanning for opportunities in other emerging Asian regions.

"In terms of R&D, we have to talk first about where we are going to superinvest," said Garnier.

"We are building biologicals, first of all with some in-licensing but also with ourown molecules…Of course we will also accelerate our establishment of R&D inChina."

Garnier pointed out that the company is looking at up to 25 new launches overthe next three years, with products "that will come right on time…to replacewhat we are losing to the generics."

MORE NEWS ARTICLES ON THIS TOPIC

GSK's UK plant to lose out to outsourcing

China CRO attracts $30m US investment

Nycomed takes bulk of API production offshore

Pharma should keep outsourcing in mind

GSK reviews Montrose API plant

GSK buys Reliant for cardiovascular drugs

Kemwell forges consumer health partnership with GSK

GSK cut down by Avandia scare

GSK axe begins to fall

Copyright - Unless otherwise stated all contents of this web site are © 2000/2009 - Decision News Media SAS- All Rights Reserved - For permission to reproduce any contents of this web site, please email our Syndicationdepartment: Administration & Finance - Full details for the use of materials on this site can be found in theTerms & Conditions

Weekly / Daily Free Newsletter

In-PharmaTechnologist.com

Pharmaceutical TechnologyOutSourcing-Pharma.com

Outsourcing PharmaLabTechnologist.com

Laboratory Equipment

Free subscription now! Your email

ALL DECISION NEWS MEDIA SITESFood & Beverage: Food & Beverage Development - Europe | Food & Beverage Development - North America | Food Marketing and Retailing | Food Processing & Packaging | Food Safety &

Quality Control | Food and Beverage in Asia Pacific | Industrial Baking & Snacks | Beverage Technology & Markets | Confectionery & Biscuit Processing | Dairy Processing & Markets |Prepared Food and Meat Processing Nutrition: Supplements & Nutrition - Europe | Supplements & Nutrition - North America Pharmaceutical: Pharmaceutical Technology | Contract Research,

Manufacturing & Clinical Trials Cosmetics: Cosmetics Formulation & Packaging - North America | Cosmetics Formulation & Packaging - Europe

About us | Site map | All sites | Recommend this Site | Advertise | Contact the Editor | Terms & Conditions | Privacy Policy

© 2000/2009 - Decision News Media SAS - All right reserved.

GSK to strip down through outsourcing and offshoring http://www.drugresearcher.com/Research-management/GSK-to-strip-dow...

2 of 2 10/25/2009 2:22 PM

Source: Retrieved October 25, 2009, from www.drugresearcher.com/Research-management/GSK-to-strip-down-through-outsourcing-and-offshoring

Appendix G: GSK Public Relation Tactic 1 (cont.)


CR Report 2004CEO/ChairmanstatementEmployment practicesHuman rightsAccess to medicines

Leadership andadvocacyCommunity investmentEngagement withstakeholdersStandards of ethicalconductResearch and innovationProducts and customersCaring for theenvironmentManaging CRSummary of indicatorsAbout this reportGRI indexCase studiesDownloadsFeedback

Home Responsibility CR Report 2004 Access to medicines Preferential pricingPreferential pricing

Preferential pricingThere are many barriers to healthcare in developing countries. Most significantly,poverty, and a lack of political will, have led to a lack of medical infrastructure -hospitals, clinics and medical professionals - that prevents poor people accessingthe healthcare they need.

The affordability of medicines is also important and there are two elements to this.First is the ability of governments or patients to pay for medicines. Solving thisproblem will require developed country governments and inter-governmentalagencies to make significant additional financial resources available to developingcountries.

The second element is the price at which medicines are sold, an area GSK canhelp to address. We are making key medicines available to developing countries atmore affordable prices and in sufficient quantities for as long as they are required.This is a major commitment that we call ‘preferential pricing’.

All our AIDS and malaria treatments are available at not-for-profit prices to publicsector customers and not-for-profit organisations in over 100 developing countries,including all the countries covered by the US President’s emergency plan for AIDSRelief (PEPFAR). Our prices are sustainable - we do not make a profit on them, butwe do cover our manufacturing and distribution costs. Therefore we can sustainsupply of these products for as long as they are needed.

We aim to reduce not-for-profit prices for our ARVs and anti-malarial medicineswhenever improvements in manufacturing, or economies of scale, allow. Forexample, Combivir, one of our key ARVs, is now available at $0.65 a day,compared with $1.70 in April 2003. This equates to around $237 per patient peryear and includes delivery costs, which compares favourably with generic tablets.The February 2005 pricing report by Medecins Sans Frontieres shows that theaverage cost of generic equivalents is $0.75 a day and the lowest priced genericequivalent costs $0.55 a day.

In addition, we negotiate public sector prices with middle-income developingcountries on a case-by-case basis. These combine a viable and sustainablecommercial return for GSK with increased affordability for the healthcare systemsconcerned.

GSK vaccines are also available at preferential prices. Here we work withmultinational organisations such as UNICEF, the World Health Organisation and thePan American Health Organisation, governments and non-governmentalorganisations, to provide appropriate and affordable vaccines for the developingworld.

Progress in 2004

In 2004 we shipped 32.7 million preferentially-priced Combivir tablets to thedeveloping world, with over 80% of these going to Africa. This is nearly threetimes the 11 million tablets shipped in 2003. We do not routinely collect data forour other preferentially-priced medicines but a similar increase has beenexperienced for Epivir, another of our ARVs. Overall shipments are still lowgiven the scale of the AIDS epidemic in Africa but the growth is encouraging.More doctors, hospitals and clinics are needed to treat more patients andensure better take up of preferentially priced medicines.

Shipments of preferentially priced Combivir excluding diverted stock

Quick links

Shipments of preferentiallypriced Combivir excludingdiverted stockSupply arrangements by typeof customer

Learn more about

Preferential pricingUS President’s emergencyplan for AIDS relief(PEPFAR)

Background information

View further informationabout how we calculate ourinjury and illness rates

Downloads

Download this section (PDF131Kb)

This section contains informationin several formats:

To download PDF files you willneed Adobe Reader. If you do nothave it installed, it is available freefrom the Adobe website. PDF linkson this site open in a new window.

For audio-visual content you canuse either Windows Media Playeror Real Player, which can beinstalled free from their respectivewebsites.

Developing world

Developed world

Research & developmentPreferential pricing

Voluntary licensing andpartnerships

Eligibility for not-for-profitprices

Search GSK.com

GlaxoSmithKline: CR Report 2004 - Preferential pricing http://www.gsk.com/responsibility/cr_report_2004/am_dc_preferential_p...

1 of 3 10/25/2009 2:25 PM

Appendix H: GSK Public Relation Tactic 2


Source: Retrieved October 25, 2009, from www.gsk.com/responsibility/cr_report_2004/am_dc_preferential_pricing.htm

2001 2002 2003 2004

(millions of tablets)

3.5 6 11 32

It is difficult to estimate the number of patients treated as a result of ourpreferential pricing agreements, since GSK does not control healthcareprovision. A report from the UN-led Accelerating access initiative (AAI),suggests that by September 2004 more than 333,000 patients in developingcountries were receiving ARV treatments supplied by the seven pharmaceuticalcompanies in the AAI. This includes 157,500 patients in Africa, a 50%increase since September 2003. For more on GSK’s work with the AAI seeAccelerating Access Initiative.At the end of 2004 we had 208 arrangements to supply preferentially-pricedARVs in 57 countries. This includes 30 agreements with private employers.We added new supply agreements with a number of middle-income countriesduring 2004. These include an agreement with the Chinese Ministry of Healthfor preferentially priced Epivir tablets to support China’s national HIV treatmentprogramme, and a number of arrangements in Central and Eastern Europe.We are also introducing discount cards for senior citizens in several middle-income countries, see Developed world.

Supply arrangements by type of customer

Supply arrangements by type of customer

2000 2001 2002q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3

AAI 2 4 10 13 17

Govt non 4

AAI 12

NGOs

Public 5

hospitals 8 13 19 31

Employers 2 13

2003 2004q4 q1 q2 q3 q4 q1 q2 q3

AAI 2 4 10 13 17

Govt non 4


2 of 3 10/25/2009 2:25 PM

Appendix H: GSK Public Relation Tactic 2 (cont.)



AAI 12

NGOs

Public 5

hospitals 8 13 19 31

Employers 2 13

Product diversion, where not-for-profit medicines are illegally shipped back forsale in wealthier countries, undermines our ability to provide not-for-profitprices and denies treatment to the intended patients in poorer countries. Wecan only afford to supply products at low prices in the world’s poorest countriesif we can still make an adequate return on them in wealthier markets. We haveintroduced different packaging and tablet colours for many of our not-for-profitmedicines to help prevent product diversion. Special tri-lingual ‘access packs’are now approved for Combivir, Epivir and Trizivir in over 50 countries, and weare now receiving regulatory approvals for the red Epivir and Combivir tablets.GSK has nine ARVs registered under the EU’s Anti-Diversion Regulation. Weare the only company to have registered products under this Regulation.We have set up five pilot projects in collaboration with NGOs in Tanzania,Uganda, Nigeria, Zambia and Malawi to assess the impact of extendingpreferential pricing to a wider range of products. Initial results show that lack ofhealthcare capacity and infrastructure are major barriers. When capacity (forexample the number of healthcare professionals) or funding is improved thereis an increase in take up of preferentially-priced medicines. For example two ofthe pilot sites have received funding from the US President’s Emergency Planfor AIDS Relief for the treatment of opportunistic infections. This has led to anincrease in orders for antibiotics. A report on the findings from the pilots will beprepared at the end of 2005.

Back to top

GSK in focus | Your health | Reports and publications | GSK worldwide | Contactus | Site mapTerms and conditions | Accessibility | Your privacy | Procurement | Flu InformationSource for GSK employees

Updated 30 January 2006© 2001 - 2009 GlaxoSmithKline plc. All rights reserved.Registered in England and Wales No. 3888792.Registered office: 980 Great West Road, Brentford, Middlesex, TW8 9GS,United Kingdom.


3 of 3 10/25/2009 2:25 PM

Appendix H: GSK Public Relation Tactic 2 (cont.)



CR Report 2005Summary and highlightsCEO/ChairmanstatementAbout this reportManaging CRAccess to medicines

ResearchEthical conductEmployeesHuman rightsEnvironmentCommunity investmentData summaryCase studiesPDF downloadsReport indexFeedback

Home Responsibility CR Report 2005 Access to medicines Developed world

Developed worldAccess to medicines is not just an issue for the developing world. Even indeveloped countries some patients cannot afford the medicines they need. This is aparticular problem in the US where many people do not have health insurance.GSK has developed Patient Assistance Programs and discount cards in the US tohelp patients without insurance.

We are also introducing discount cards in several middle-income countries toenable qualifying patients to obtain prescription medicines at a discount price.

Programmes in the USPatient Assistance Programs provide prescription medicines to low-income,uninsured patients free or at minimal cost. GSK operates several programmes,including Commitment to Access which covers cancer treatments and Bridges toAccess which covers other medicines for outpatients. Patients are registeredthrough one phone call from a patient advocate and receive medicine at their localpharmacy or by mail order. In 2005, 565,000 patients received GSK medicinesworth $463.8 million through these programmes, compared with $372.5 million in2004. The value of the medicines is calculated using the wholesale acquisition cost(WAC).

GSK was the first pharmaceutical company in the US to offer a card providingsavings on medicines to low-income senior citizens and disabled people. Known asthe Orange Card this enabled these people to buy GSK outpatient prescriptionmedicines at a discount of up to 40%. In 2005, 205,672 Orange Card holdersreceived 49,084 prescriptions, saving $5 million (based on WAC).

In 2002, GSK and six other pharmaceutical companies established the Together Rxcard which provided discounts on over 155 prescription medicines for low-incomesenior citizens who are eligible for Medicare. In 2005, 347,835 people received463,901 GSK prescriptions through this programme, saving $7.5 million (based onWAC).

Our access programmes in the US will change significantly in 2006 with the launchof a new Medicare prescription drug coverage programme. The Orange Card andTogether Rx programmes finished on 31 December 2005 as those patients arenow eligible for the new Medicare programme. We will report on the roll-out ofthese changes next year.

In January 2005, GSK and nine other pharmaceutical companies created a newcard to improve access to medicines for other uninsured Americans, not justseniors. The Together Rx Access card provides savings of 25-40% on more than275 medicines. Approximately 36 million people, around 80% of uninsured peoplein the US, are eligible to enrol. The participating companies enrolled 353,113people in 2005, who received 647,227 prescriptions worth $10.1 million (based onWAC). GSK assisted 10,947 of these patients, with 31,617 prescriptions, worth$2.9 million.

Orange Cards in middle income countriesIn 2004 GSK introduced Orange Cards providing discounts on certain GSKprescription medicines for eligible patients in Bulgaria, Lithuania and Ukraine. Thenature of the discounts varies between countries, depending on the needs of thepatient and the way in which the healthcare system operates.

Our Orange Card in the Ukraine gives all asthma and chronic obstructivepulmonary disease patients who are under 25 or over 50, an average discount of19% on GSK’s Seretide asthma medicine. Asthma patients of any age who sufferdisabilities or who are affected by the Chernobyl nuclear disaster are also eligible.

Download

Download this section PDF(0.3Mb)

This section contains informationin several formats:

To download PDF files you willneed Adobe Reader. If you do nothave it installed, it is available freefrom the Adobe website. PDF linkson this site open in a new window.

For audio-visual content you canuse either Windows Media Playeror Real Player, which can beinstalled free from their respectivewebsites.

Developing worldDeveloped world

Developed world - CR Report 2005 - GlaxoSmithKline http://www.gsk.com/responsibility/cr_report_2005/access-to-medicines/...

1 of 2 10/25/2009 2:47 PM

Appendix I: GSK Public Relation Tactic 3


Source: Retrieved October 25, 2009, from www.gsk.com/responsibility/cr_report_2005/access-to-medicines/developed-countries.htm

Eligibility is assessed by the patient’s doctor and patients can receive the medicineat participating pharmacies. A hotline number has been set up to help patients findtheir nearest pharmacy. In 2005, 3,500 patients enrolled and received discountsworth $176,000.

In Lithuania, our Orange Card gives senior citizens an average discount of 40% onthe patient co-payment on all GSK prescription medicines. So far more than 12,000patients have applied for an Orange Card and 155 pharmacies are registered toparticipate. In 2005, 3,000 patients received discounts worth £20,000 ($36,400). InDecember we widened the group who are eligible for the Orange Card to includedisabled people.

A GSK Orange Card was also introduced in Bulgaria in May 2004 for low-incomepatients with chronic diseases such as asthma, chronic obstructive pulmonarydisease and diabetes. Card holders receive an average 35% discount on four GSKprescription medicines. In 2005, 36,000 patients received discounts worth overEuro 1.4 million ($1.75 million)

Summary of GSK discount programmes

Country GSK ProgrammeNumber ofPatients

Value ofBenefit toPatients

US Patient Assistance Programs -Free or minimal cost medicines forlow-income, uninsured patients.

565,000receivedprescriptions

$464 million

US Orange Card - Discounts forlow-income senior citizens anddisabled people.


$4.992million

US Together Rx - Discounts forlow-income senior citizens. Jointindustry programme.


$7.561million

US Together Rx Access - Discountsfor all low-income uninsuredpatients. Joint industryprogramme.


$2.912million

Bulgaria Orange Card - Discounts forlow-income patients with chronicdiseases.

36,000patientsreceivedprescriptions

$1.75 million

Lithuania Orange Card - Discounts forsenior citizens and disabled people

12,000enrolled

$36,400

Ukraine Orange Card - Discounts onasthma medicine for patientsunder 25 or over 50.

3,500enrolled

$176,000

Back to top

GSK in focus | Your health | Reports and publications | GSK worldwide | Contact us | Site mapTerms and conditions | Accessibility | Your privacy | Procurement | Flu Information Source for GSK employees

Updated 30 January 2006© 2001 - 2009 GlaxoSmithKline plc. All rights reserved.Registered in England and Wales No. 3888792.Registered office: 980 Great West Road, Brentford, Middlesex, TW8 9GS, United Kingdom.

Developed world - CR Report 2005 - GlaxoSmithKline http://www.gsk.com/responsibility/cr_report_2005/access-to-medicines/...

2 of 2 10/25/2009 2:47 PM

Appendix I: GSK Public Relation Tactic 3


Source: Retrieved October 25, 2009, from www.gsk.com/responsibility/cr_report_2005/access-to-medicines/developed-countries.htm

Home Responsibility Public policy and patient advocacy Public policy activity in 2008Advocacy on pricing and competitiveness

European activityGuiding principles for relative effectiveness assessments and pricing

Organisations engaged: EU member states, the European Commission,stakeholder representatives participating in the EU’s High Level PharmaceuticalForum

Industry associations involved: EFPIA, EuropaBio

GSK position: Government funding decisions are often based on anassessment of a medicine’s clinical or cost effectiveness. We believe that thesevalue assessments should be conducted transparently and in a timely mannerand all key stakeholders should be able to submit evidence for the assessments.Governments should allow greater pricing flexibility when the long-term value ofa medicine is not certain at launch.

GSK, representing EFPIA, strongly supported the Good practice principles forrelative effectiveness assessments which were developed within the frameworkof the EU’s High Level Pharmaceutical Forum (HLPF). These were adopted in2008 along with the Guiding principles for good practices implementing a pricingand reimbursement policy. EFPIA’s Health Technology Assessments principles,which the industry has previous adopted and that GSK helped to develop, arealigned with the principles adopted by the HLPF.

Improving regulations that impact on the pharmaceutical industry’scompetitiveness in the UK

Organisations engaged: UK government and the European Commission

Industry associations involved: ABPI, CBI, Institute of Directors

GSK position: The pharmaceutical industry is one of the most highly regulatedindustries in Europe. GSK supports strong regulation but has been working withthe UK government and the European Commission to propose ways to simplifyregulations while achieving the same policy goal. This aligns with the aims of theUK government and European Commission to reduce the regulatory burdenplaced on industry.

GSK submitted a series of 50 proposals to the UK government for simplification

Advocacy on pricing and competitiveness - Public policy activity in 2008 ... http://www.gsk.com/responsibility/advocacy-on-pricing-and-competitive...

1 of 2 10/25/2009 3:55 PM

Appendix J: GSK Public Relation Tactic 4


Source: Retrieved October 25, 2009, from www.gsk.com/responsibility/advocacy-on-pricing-and-competitiveness.htm

of existing regulations. We also made a similar submission to the Commission,focusing on regulations that originate at a European level.

Back to top

Advocacy on pricing and competitiveness - Public policy activity in 2008 ... http://www.gsk.com/responsibility/advocacy-on-pricing-and-competitive...

2 of 2 10/25/2009 3:55 PM

Appendix J: GSK Public Relation Tactic 4, (cont.)


Source: Retrieved October 25, 2009, from www.gsk.com/responsibility/advocacy-on-pricing-and-competitiveness.htm

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Aca

dem

y of

Sur

gica

l Res

earc

hC

orpo

rate

Spo

nsor

ship

Pro

gram

for 2

008-

2009

$3,8

00

Acq

uire

d Im

mun

e D

efic

ienc

y S

yndr

ome

Pro

ject

- A

laba

ma

Legi

slat

ive

Edu

catio

n C

ampa

ign

$10,

000

Acq

uire

d Im

mun

e D

efic

ienc

y S

yndr

ome

Pro

ject

- Lo

s A

ngel

esN

atio

nal T

reat

men

t Edu

catio

n Tr

aini

ng$2

5,00

0

Alb

any

Med

ical

Col

lege

Hum

an Im

mun

odef

icie

ncy

Viru

s an

d M

ethi

cilli

n R

esis

tant

Sta

phyl

ococ

cus

Aur

eus:

A L

ive

Nat

iona

l Sat

ellit

e V

ideo

conf

eren

ce a

nd W

ebca

st S

erie

s$2

,500

Am

eric

an A

cade

my

of A

llerg

y20

09 A

nnua

l Mee

ting

Fello

ws-

in-T

rain

ing

Pro

gram

$25,

000

Am

eric

an A

cade

my

of A

llerg

y20

09 A

nnua

l Mee

ting

Fello

ws-

in-T

rain

ing

Trav

el S

chol

arsh

ips

$27,

500

Am

eric

an A

cade

my

of A

llerg

y20

09 F

ello

ws

Car

eer D

evel

opm

ent A

war

ds$4

00,0

00

Am

eric

an A

cade

my

of A

llerg

y20

09 V

irtua

l Ann

ual M

eetin

g$4

5,00

0

Am

eric

an A

cade

my

of A

llerg

yC

ontro

vers

ial T

opic

s in

the

Man

agem

ent o

f Rhi

nitis

$47,

500

Am

eric

an A

cade

my

of A

llerg

yP

ulm

onar

y / C

ritic

al C

are

and

Alle

rgy

/ Im

mun

olog

y Fe

llow

s C

aree

r Dev

elop

men

t Aw

ards

Pro

gram

$450

,000

Am

eric

an A

cade

my

of A

llerg

yW

isco

nsin

Alle

rgy

Soc

iety

200

8 A

nnua

l Mee

ting

$3,2

00

Am

eric

an A

cade

my

of F

amily

Phy

sici

ans

Geo

rgia

Cha

pter

60th

Ann

ual S

cien

tific

Ass

embl

y &

Exh

ibiti

on$5

,000

Am

eric

an A

cade

my

of F

amily

Phy

sici

ans

Texa

s C

hapt

erA

sthm

a C

ontro

l: M

akin

g th

e B

est D

ecis

ion

$5,0

00

Am

eric

an A

cade

my

of N

urse

Pra

ctiti

oner

sM

anag

ing

the

Pat

ient

with

Hyp

ertri

glyc

erid

emia

: A

Pra

ctic

al A

ppro

ach

for N

urse

Pra

ctiti

oner

s$5

2,18

6

Am

eric

an A

cade

my

of N

urse

Pra

ctiti

oner

sP

atie

nt C

ouns

elin

g M

anua

l on

the

Topi

c of

Hyp

ertri

glyc

erid

emia

$32,

804

Am

eric

an A

cade

my

of P

hysi

cian

Ass

ista

nts

Dia

gnos

is a

nd M

anag

emen

t of R

hini

tis: A

Con

tinui

ng M

edic

al E

duca

tion

Cur

ricul

um

$67,

310

Am

eric

an A

ssoc

iatio

n fo

r Can

cer R

esea

rch

2008

Che

mis

try in

Can

cer R

esea

rch

Aw

ard

$15,

000

Am

eric

an A

ssoc

iatio

n fo

r Lab

orat

ory

Ani

mal

Sci

ence

- R

TBS

uppo

rt D

istri

ct IV

200

9 M

eetin

g P

rovi

ding

Edu

catio

n an

d Tr

aini

ng fo

r Vet

erin

aria

ns, M

anag

ers,

Sup

ervi

sors

and

Te

chni

cian

s$1

,900

Am

eric

an A

ssoc

iatio

n fo

r Lab

orat

ory

Ani

mal

Sci

ence

Fou

ndat

ion

Sup

port

the

Dev

elop

men

t of P

ublic

Out

reac

h P

roje

cts

abou

t Lab

orat

ory

Ani

mal

Res

earc

h an

d M

edic

al R

esea

rch

$7,6

00

Am

eric

an A

ssoc

iatio

n of

Clin

ical

End

ocrin

olog

ists

Am

eric

an A

ssoc

iatio

n of

Clin

ical

End

ocrin

olog

ists

: D

iabe

tes

Day

for P

rimar

y C

are

$31,

725

Am

eric

an A

ssoc

iatio

n of

Clin

ical

End

ocrin

olog

ists

Geo

rgia

Cha

pter

of t

he A

mer

ican

Ass

ocia

tion

of C

linic

al E

ndoc

rinol

ogis

ts A

nnua

l Mee

ting

and

Sym

posi

um$5

,000

Am

eric

an C

hem

ical

Soc

iety

Sup

port

Sec

ond

Ann

ual F

ront

iers

in M

edic

inal

Che

mis

try C

onfe

renc

e$1

,000

Am

eric

an C

hem

ical

Soc

iety

Div

isio

n of

Org

anic

Che

mis

tryD

onat

ion

for t

he H

. C. B

row

n A

war

d S

ympo

sium

$1,0

00

Am

eric

an C

olle

ge o

f Alle

rgy

& Im

mun

olog

yC

ontin

uing

Med

ical

Edu

catio

n R

evie

w A

rticl

es in

the

Ann

als

of A

llerg

y, A

sthm

a &

Imm

unol

ogy

$29,

696

Am

eric

an C

olle

ge o

f Car

diol

ogy

Foun

datio

n41

st A

nnua

l New

Yor

k C

ardi

ovas

cula

r Sym

posi

um$5

,000

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

Febr

uary

, 200

91

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

445

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

Am

eric

an C

olle

ge o

f Che

st P

hysi

cian

sC

HE

ST

2008

Edu

catio

nal S

ympo

sium

P

roph

ylax

is o

f Ven

ous

Thro

mbo

embo

lism

in th

e M

edic

al P

atie

nt: T

he

Goo

d, th

e B

ad, a

nd th

e U

gly

$112

,104

Am

eric

an C

olle

ge o

f Che

st P

hysi

cian

sC

hron

ic O

bstru

ctiv

e P

ulm

onar

y D

isea

se P

atie

nt M

anag

emen

t: A

Com

preh

ensi

ve A

ppro

ach

$172

,633

Am

eric

an C

olle

ge o

f Che

st P

hysi

cian

sC

hron

ic O

bstru

ctiv

e P

ulm

onar

y D

isea

se: 2

009

$42,

036

Am

eric

an C

olle

ge o

f Che

st P

hysi

cian

sS

imila

ritie

s an

d D

iffer

ence

s in

Ast

hma

and

Chr

onic

Obs

truct

ive

Pul

mon

ary

Dis

ease

$2

1,01

8

Am

eric

an C

olle

ge o

f Gas

troen

tero

logy

Edu

catio

n S

ympo

sia

Pro

gram

s at

the

2008

Ann

ual M

eetin

g.$3

5,00

0

Am

eric

an C

olle

ge o

f Lab

orat

ory

Ani

mal

Med

icin

eS

uppo

rt th

e A

mer

ican

Col

lege

of L

abor

ator

y A

nim

al M

edic

ine

Foru

m In

nova

tion

in L

abor

ator

y A

nim

al

Man

agem

ent &

Med

icin

e$1

1,40

0

Am

eric

an D

iabe

tes

Ass

ocia

tion

Am

eric

an D

iabe

tes

Ass

ocia

tion

68th

Sci

entif

ic S

essi

ons:

Sci

entif

ic H

ighl

ight

s$2

6,00

0

Am

eric

an H

ealth

Res

ourc

es, I

nc.

Pha

rmE

d: H

uman

Imm

unod

efic

ienc

y V

irus

Dru

g Th

erap

y U

pdat

e fo

r the

Pha

rmac

ist

$4,4

00

Am

eric

an H

eart

Ass

ocia

tion

The

Acu

te C

oron

ary

Syn

drom

e C

ontin

uum

: C

urre

nt a

nd E

mer

ging

Man

agem

ent S

trate

gies

$50,

753

Am

eric

an L

iver

Fou

ndat

ion

Thin

k B

: Hep

atiti

s B

Info

rmat

ion

You

Nee

d to

Kno

w$5

0,00

0

Am

eric

an P

harm

acis

ts A

ssoc

iatio

nJo

int F

orce

s P

harm

acy

Sem

inar

200

8, C

linic

al a

nd P

harm

acol

ogy

Upd

ates

, Inf

orm

atio

n S

yste

ms

and

Med

icat

ion

Man

agem

ent

$4,5

00

Am

eric

an P

hysi

olog

ical

Soc

iety

Sup

port

End

owm

ent F

und

for A

nnua

l Sch

olan

der A

war

d fo

r 200

9$1

,000

Am

eric

an S

ocia

l Hea

lth A

ssoc

iatio

nC

ervi

cal C

ance

r Pre

vent

ion

Edu

catio

n P

roje

ct$4

5,00

0

Am

eric

an S

ocie

ty o

f Hea

lth S

yste

m P

harm

acis

tsA

dvan

ces

in th

e M

anag

emen

t of P

osto

pera

tive

Ileus

: Red

ucin

g th

e C

linic

al a

nd E

cono

mic

Bur

den

$231

,150

Am

eric

an S

ocie

ty o

f Hyp

erte

nsio

nS

ympo

sia

and

End

urin

g M

ater

ial B

eta

Blo

cker

s an

d H

yper

tens

ion

in 2

008:

Diff

eren

tiatin

g M

echa

nism

s an

d A

ddre

ssin

g th

e E

vide

nce

$22,

617

Am

eric

an S

ocie

ty o

f Lab

orat

ory

Ani

mal

Pra

ctiti

oner

sS

uppo

rt S

umm

er In

tern

ship

in L

abor

ator

y A

nim

al M

edic

ine

for V

eter

inar

y S

tude

nts

$7,6

00

Am

eric

an T

hora

cic

Soc

iety

, Inc

.20

09 A

mer

ican

Tho

raci

c S

ocie

ty T

rave

l Sch

olar

ship

Pro

gram

$25,

000

Am

eric

an U

rolo

gica

l Ass

ocia

tion

Edu

catio

n an

d R

esea

rch

Web

inar

s: 1

. Pro

stat

e C

ance

r Pre

vent

ion

and

2. U

nder

stan

ding

Ris

k$1

7,13

0

Am

eric

an V

eter

inar

y M

edic

al A

ssoc

iatio

nS

uppo

rt 20

09 E

duca

tiona

l Ini

tiativ

es$1

9,00

0

Am

eric

ans

For M

edic

al P

rogr

ess

Out

reac

h In

itiat

ive:

Vet

erin

aria

ns S

peak

ing

for R

esea

rch

$85,

500

Ang

ioge

nesi

s Fo

unda

tion,

Inc.

"The

Bes

t of A

ntia

ngio

gene

sis"

: Web

cast

with

hig

hlig

hts

from

The

Jud

ah F

olkm

an 6

th In

tern

atio

nal C

onfe

renc

e A

ntia

ngio

gene

sis:

New

Fro

ntie

rs in

The

rape

utic

Dev

elop

men

t$2

5,00

0

Ann

enbe

rg C

ente

r at E

isen

how

erE

volv

ing

Trea

tmen

t Stra

tegi

es fo

r Chr

onic

Imm

une

Thro

mbo

cyto

peni

c P

urpu

ra in

the

Vet

eran

s H

ealth

A

dmin

istra

tion

Sys

tem

$121

,697

Ann

enbe

rg C

ente

r at E

isen

how

erE

volv

ing

Trea

tmen

t Stra

tegi

es fo

r Chr

onic

Imm

une

Thro

mbo

cyto

peni

c P

urpu

ra in

the

Vet

eran

s H

ealth

A

dmin

istra

tion

Sys

tem

$42,

951

Ant

icoa

gula

tion

Foru

m, I

nc.

10th

Nat

iona

l Con

fere

nce

on A

ntic

oagu

lant

The

rapy

$10,

000

Ass

ocia

tion

of R

epro

duct

ive

Hea

lth P

rofe

ssio

nals

Man

agin

g H

uman

Pap

illom

aviru

s: A

New

Era

in P

atie

nt C

are

$110

,000

Febr

uary

, 200

92

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

(con

t.)

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

446

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

Ass

ocia

tion

of R

epro

duct

ive

Hea

lth P

rofe

ssio

nals

Und

erst

andi

ng a

nd T

reat

ing

Men

stru

al M

igra

ine

$95,

000

Atla

ntic

are

Reg

iona

l Med

ical

Cen

ter

The

3rd

Ann

ual C

ardi

ovas

cula

r Nur

sing

Sym

posi

um$1

,500

Bay

lor U

nive

rsity

Med

ical

Cen

ter

2009

Car

diov

ascu

lar C

onfe

renc

e: A

dvan

ces

in C

ardi

ovas

cula

r The

rapy

$2,5

00

Boa

rd o

f Tru

stee

s of

the

Uni

vers

ity o

f Illi

nois

Com

mitt

ed to

Car

ing

II: A

frica

n A

mer

ican

and

Lat

ino

Clin

icia

ns R

espo

ndin

g to

Hum

an Im

mun

odef

icie

ncy

Viru

s/A

cqui

red

Imm

une

Def

icie

ncy

Syn

drom

e.$2

,500

Boy

s &

Girl

s C

lubs

of G

reat

er W

ashi

ngto

nFi

tU a

nd F

itFam

ily P

rogr

am$4

00,0

00

Bre

ast C

ance

r Net

wor

k of

Stre

ngth

30th

Ann

iver

sary

Cel

ebra

tion

(Bre

ast C

ance

r)$1

,000

Bre

athe

New

Ham

pshi

reC

an't

Cat

ch Y

our B

reat

h? C

ome

Get

Tes

ted

$3,5

00

Brig

ham

& W

omen

's H

ospi

tal,

Inc.

Ast

hma

Gra

nd R

ound

s at

Par

tner

s A

sthm

a C

ente

r $4

,000

Brig

ham

& W

omen

's H

ospi

tal,

Inc.

Par

tner

s A

sthm

a C

ente

r's Q

uarte

rly P

atie

nt N

ewsl

ette

r: B

reat

h of

Fre

sh A

ir $1

0,00

0

Cal

iforn

ia C

oalit

ion

for C

hild

hood

Imm

uniz

atio

nIm

mun

izat

ion

Adv

ocac

y an

d E

duca

tion

$20,

000

Car

diov

ascu

lar I

nstit

ute

of P

hila

delp

hia

15th

Ann

ual C

linic

al M

anag

emen

t of H

eart

Dis

ease

: Car

diol

ogy

Upd

ate

2008

$3,0

00

Car

ter C

ente

rLy

mph

atic

Fila

riasi

s E

limin

atio

n A

ctiv

ities

$250

,000

Cen

ter f

or H

ealth

Car

e S

trate

gies

Impr

ovin

g H

ealth

care

Qua

lity

in C

hron

ic C

are

$1,0

00

Chi

ldre

n's

Can

cer A

nd B

lood

Fou

ndat

ion

2008

Bre

akth

roug

h B

all S

pons

or$1

5,00

0

Clin

ical

Car

e O

ptio

nsC

linic

al C

are

Opt

ions

Offi

cial

Con

fere

nce

Cov

erag

e of

the

Forty

-Eig

hth

Ann

ual I

nter

scie

nce

Con

fere

nce

on

Ant

imic

robi

al A

gent

s an

d C

hem

othe

rapy

/Infe

ctio

us D

isea

ses

Soc

iety

of A

mer

ica

Ann

ual M

eetin

g$9

6,58

7

Clin

ical

Car

e O

ptio

nsC

linic

al C

are

Opt

ions

Offi

cial

Con

fere

nce

Cov

erag

e of

the

Twen

ty-S

even

th In

tern

atio

nal A

cqui

red

Imm

une

Def

icie

ncy

Syn

drom

e C

onfe

renc

e$7

3,06

4

Col

d S

prin

g H

arbo

r Lab

orat

ory

Mem

bers

hip

Ren

ewal

- C

orpo

rate

Ben

efac

tor

$50,

000

Col

egio

de

Med

icos

Ciru

jano

s de

Pue

rto R

ico,

Inc

.A

nnua

l Phy

sici

an a

nd S

urge

on C

onve

ntio

n of

PR

Col

lege

$5,0

00

Con

nect

ive

Tiss

ue O

ncol

ogy

Soc

iety

Con

tribu

tion

for 1

4th

Ann

ual M

eetin

g N

ov 1

3-15

, 200

8$2

0,00

0

Cor

nuco

pia

Hou

seA

Cho

cola

te A

ffair

for C

ance

r Sup

port

Pro

gram

s$1

0,00

0

Dan

bury

Hos

pita

lC

hron

ic O

bstru

ctiv

e P

ulm

onar

y D

isea

se M

anag

emen

t: S

tate

of t

he A

rt$4

,000

Del

awar

e V

alle

y B

ranc

h - A

mer

ican

Ass

ocia

tion

for L

abor

ator

y A

nim

al S

cien

ceS

uppo

rt th

e Fu

ndin

g fo

r the

Ann

ual L

abor

ator

y A

nim

al S

cien

ce a

nd T

echn

olog

y S

emin

ar$1

,900

Dis

cove

ry C

omm

unic

atio

ns, L

LCC

hron

ic O

bstru

ctiv

e P

ulm

onar

y D

isea

se: I

mpr

ovin

g Tr

eatm

ent,

Max

imiz

ing

Ben

efit

$98,

825

Dis

cove

ry C

omm

unic

atio

ns, L

LCD

iagn

osin

g an

d Tr

eatin

g C

o M

orbi

ditie

s in

Pat

ient

s w

ith H

uman

Imm

unod

efic

ienc

y V

irus/

Acq

uire

d Im

mun

e D

efic

ienc

y S

yndr

ome

$223

,050

Dis

cove

ry C

omm

unic

atio

ns, L

LCD

isco

very

Hea

lth C

hann

el M

ultip

latfo

rm--

Mig

rain

e: R

elie

ving

the

Bur

den

$146

,667

Febr

uary

, 200

93

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

(con

t.)

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

447

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

Dis

cove

ry C

omm

unic

atio

ns, L

LCD

isco

very

Hea

lth C

hann

el M

ultip

latfo

rm--

Mig

rain

e: R

elie

ving

the

Bur

den

$146

,666

Dis

cove

ry C

omm

unic

atio

ns, L

LCU

nder

stan

ding

Rot

aviru

s V

acci

natio

n$5

0,00

0

Dis

cove

ry C

omm

unic

atio

ns, L

LCU

nder

stan

ding

Rot

aviru

s V

acci

natio

n$4

4,82

5

Dis

cove

ry In

stitu

te o

f Med

ical

Edu

catio

n (D

IME

)A

mer

ican

Soc

iety

of H

ealth

-Sys

tem

Pha

rmac

ists

Sym

posi

a: I

nteg

ratin

g Tr

eatm

ent G

uide

lines

for A

cute

C

oron

ary

Syn

drom

e in

to C

linic

al P

ract

ice:

Ant

ipla

tele

t and

Ant

icoa

gula

nt T

hera

pies

$186

,180

Dis

cove

ry In

stitu

te o

f Med

ical

Edu

catio

n (D

IME

)Th

e N

ew A

ntic

oagu

lant

Arr

ay fo

r the

Acu

te C

oron

ary

Syn

drom

es: D

iffer

entia

ting

Age

nts

in th

e La

test

Gui

delin

es

to S

impl

ify S

elec

tion

$33,

185

Duk

e U

nive

rsity

Ant

ithro

mbo

tics

in A

cute

Cor

onar

y S

yndr

ome

$17,

500

Duk

e U

nive

rsity

Hep

atol

ogy

Fello

wsh

ip fo

r 7/1

/08-

12/3

1/08

$28,

448

Duk

e U

nive

rsity

Mov

emen

t Dis

orde

rs P

rogr

am N

ewsl

ette

r$3

,000

Duk

e U

nive

rsity

Med

ical

Cen

ter

Ear

ly D

etec

tion

of B

reas

t Can

cer i

n Y

oung

, Low

-Inco

me

Afri

can

Am

eric

an W

omen

$25,

000

Duk

e U

nive

rsity

Med

ical

Cen

ter

Hea

lthy

Life

styl

es (O

besi

ty) P

rogr

am E

xpan

sion

$25,

000

Eas

tern

Pha

rmac

eutic

al T

echn

olog

yD

onat

ion

to th

e 47

th A

nnua

l Mee

ting

$500

Edu

catio

nal C

once

pts

Gro

up L

LC4t

h A

nnua

l Geo

rget

own

Bre

ast C

ance

r Upd

ate:

Em

ergi

ng T

rend

s in

the

Man

agem

ent o

f Bre

ast C

ance

r$1

0,00

0

Edu

catio

nal C

once

pts

Gro

up L

LCA

dvan

cing

Tre

atm

ent P

arad

igm

s in

Hem

atol

ogic

Mal

igna

ncie

s: H

ighl

ight

s fro

m th

e 50

th A

mer

ican

Soc

iety

of

Hem

atol

ogy

Ann

ual M

eetin

g$5

,000

Edu

catio

nal C

once

pts

Gro

up L

LCO

ncoB

eat A

mer

ican

Soc

iety

of H

emat

olog

y: R

epor

ting

the

New

s…B

eatin

g C

ance

r,$1

5,00

0

Edu

catio

nal C

once

pts

Gro

up L

LCS

t. V

ince

nt's

6th

Ann

ual I

ndy

Hem

atol

ogy

Rev

iew

$10,

000

El P

uebl

oM

ujer

San

a - L

atin

a C

ervi

cal a

nd B

reas

t Can

cer E

arly

Det

ectio

n P

rogr

am$7

5,00

0

Epi

leps

y Fo

unda

tion

of A

mer

ica

Gen

eral

Sup

port

for t

he O

rgan

izat

ion'

s M

issi

on$2

75,0

00

Foun

datio

n fo

r Bio

med

ical

Res

earc

hS

uppo

rt ne

w p

rogr

ams

in 2

009

- Edu

catin

g th

e P

ublic

abo

ut th

e E

ssen

tial R

ole

of L

abor

ator

y A

nim

als

to A

dvan

ce

Hum

an H

ealth

$55,

500

Fran

klin

Squ

are

Hos

pita

l, In

c.U

pdat

e in

the

Man

agem

ent o

f Ast

hma

$2,1

00

Frie

nds

of C

ance

r Res

earc

hS

uppo

rt S

ympo

sium

- C

ance

r, P

reve

ntio

n an

d D

etec

tion

Res

earc

h$7

5,00

0

Fund

for P

hila

delp

hia

Bre

ast H

ealth

Out

reac

h an

d C

ouns

elin

g P

rogr

am$1

00,0

00

Gen

eral

Hos

pita

l Cor

pora

tion

GS

K R

esea

rch

& E

duca

tion

Foun

datio

n fo

r Car

diov

ascu

lar D

isea

se A

war

d P

rogr

am fo

r You

ng In

vest

igat

ors

- A

war

d W

inne

r $5

5,00

0

Gen

esys

Reg

iona

l Med

ical

Cen

ter

2009

Upd

ate

in O

ncol

ogy

$3,0

00

Geo

rgia

Ass

ocia

tion

of P

hysi

cian

Ass

ista

nts,

Inc.

2009

Ann

ual W

inte

r Con

tinui

ng M

edic

al E

duca

tion

Con

fere

nce

$20,

000

Gor

don

Res

earc

h C

onfe

renc

esS

uppo

rt 20

09 C

ell B

iolo

gy o

f Meg

akar

yocy

tic a

nd P

late

lets

$10,

000

Febr

uary

, 200

94

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

(con

t.)

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

448

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

Gra

nd R

apid

s A

rea

Med

ical

Edu

catio

n C

ente

rA

sthm

a C

risis

200

8: E

thni

c D

ispa

ritie

s, N

atio

nal G

uide

lines

, and

Com

mun

ity B

ased

Stra

tegi

es$3

,000

Gra

nd R

apid

s A

rea

Med

ical

Edu

catio

n C

ente

rG

rand

Rap

ids

Clin

ical

Onc

olog

y P

rogr

am’s

13t

h A

nnua

l Dis

tingu

ishe

d Le

ctur

e S

erie

s “O

ncol

ogy

Res

earc

h U

pdat

e 20

08”

$3,5

00

Gyn

ecol

ogic

Can

cer F

ound

atio

nA

frica

n A

mer

ican

Wom

en L

ivin

g H

ealth

y$4

0,00

0

Gyn

ecol

ogic

Can

cer F

ound

atio

nC

ervi

cal C

ance

r Pat

ient

Edu

catio

n W

eb S

ite In

itiat

ive

$50,

000

Hay

mar

ket M

edic

al E

duca

tion

Sat

ellit

e S

ympo

sium

and

End

urin

g M

ater

ial a

t Am

eric

an A

cade

my

of P

hysi

cian

Ass

ista

nts

(AA

PA

) Con

gres

s"D

yslip

idem

ia:

The

Res

t of t

he S

tory

"$1

05,7

12

Hea

lth S

cien

ce C

ente

r20

08 C

omm

unity

Pha

rmac

ist C

ontin

uing

Edu

catio

n P

rogr

am:

Ach

ievi

ng G

lyce

mic

Con

trol i

n Ty

pe II

Dia

bete

s:

Whe

re A

re W

e in

200

8?$1

5,44

0

Hitc

hcoc

k M

edic

al C

ente

r26

th A

nnua

l DH

MC

Car

diov

ascu

lar D

isea

se U

pdat

e S

ympo

sium

200

8$2

,000

HIV

Tre

ater

s M

edic

al A

ssoc

iatio

n of

Pue

rto R

ico,

Inc.

Sev

enth

Ann

ual C

onve

ntio

n an

d S

cien

tific

Mee

ting

$8,0

00

Illin

ois

Pha

rmac

ists

Ass

ocia

tion

A R

ound

tabl

e E

xplo

ratio

n of

Bes

t Pra

ctic

es &

Upd

ates

in Im

mun

izat

ion

$5,0

00

Imed

exB

est o

f the

Day

from

the

2008

San

Ant

onio

Bre

ast C

ance

r Sym

posi

um$1

0,00

0

Imed

exLy

mph

oma

& M

yelo

ma

2008

$30,

000

Imed

exO

verc

omin

g R

ituxi

mab

Res

ista

nce:

Sat

ellit

e S

ympo

sium

at L

ymph

oma

& M

yelo

ma

2008

$52,

568

Infe

ctio

us D

isea

ses

Soc

iety

of A

mer

ica

Res

earc

h an

d E

duca

tion

Foun

datio

nA

nnua

l Int

ersc

ienc

e C

onfe

renc

e on

Ant

imic

robi

al A

gent

s an

d C

hem

othe

rapy

/Infe

ctio

us D

isea

ses

Soc

iety

of

Am

eric

a fo

rty-s

ixth

Ann

ual M

eetin

g H

uman

Imm

unod

efic

ienc

y V

irus

Bus

ines

s R

ecep

tion

$7,5

00

Info

rmat

ion

Tele

visi

on N

etw

ork

Und

erst

andi

ng Im

mun

e Th

rom

bocy

tope

nic

Pur

pura

$1

30,0

00

Inov

a H

ealth

Sys

tem

Fou

ndat

ion

Hum

an Im

mun

odef

icie

ncy

Viru

s/A

cqui

red

Imm

une

Def

icie

ncy

Syn

drom

e A

dvan

ced

Clin

ical

Upd

ate:

200

8$1

,500

Inov

a H

ealth

Sys

tem

Fou

ndat

ion

Med

ical

/Sur

gica

l Tre

atm

ent o

f Dee

p V

ein

Thro

mbo

sis

/ Pul

mon

ary

Em

bolis

m$1

0,00

0

Inst

itute

for L

abor

ator

y A

nim

al R

esea

rch

Sup

port

2009

pro

gram

s$8

5,50

0

Inst

itute

for P

rofe

ssio

nal D

evel

opm

ent i

n th

e A

ddic

tions

Und

erst

andi

ng W

hat I

s N

ew A

bout

Hep

atiti

s$1

00,0

00

Inst

itute

of M

edic

ine

of th

e N

atio

nal A

cade

mie

sO

ne Y

ear S

ubsc

riptio

n - T

his

is th

e Fi

rst o

f a T

hree

Yea

r Spo

nsor

ship

$85,

000

Inte

gris

Bap

tist M

edic

al C

ente

rC

linic

al D

ilem

mas

in th

e Tr

eatm

ent o

f Ven

ous

Thro

mbo

embo

lism

$1,8

00

Inte

rnat

iona

l Acq

uire

d Im

mun

e D

efic

ienc

y S

yndr

ome

Soc

iety

- U

SA

Impr

ovin

g th

e M

anag

emen

t of H

uman

Imm

unod

efic

ienc

y V

irus

Dis

ease

: An

Adv

ance

d C

ours

e in

Hum

an

Imm

unod

efic

ienc

y V

irus

Pat

hoge

nesi

s, A

ntire

trovi

rals

, and

Oth

er S

elec

ted

Issu

es

$6,6

00

Inte

rnat

iona

l Gyn

ecol

ogic

Can

cer S

ocie

tyB

ronz

e S

pons

orsh

ip$1

5,00

0

Inte

rvol

Inte

rnat

iona

l Hum

anita

rian

Rel

ief

$1,0

00

John

But

ler L

ung

Foun

datio

nR

ecen

t Adv

ance

s in

Pul

mon

ary

and

Crit

ical

Car

e M

edic

ine

$3,0

00

John

Hop

kins

Uni

vers

ity -

Cen

ter f

or A

ltern

ativ

e to

Ani

mal

Tes

ting

Sup

port

Lect

ures

on

Key

Top

ics

in th

e Fi

eld

of H

uman

e S

cien

ce a

nd M

etho

ds in

Res

earc

h S

pear

head

ing

the

Dev

elop

men

t of A

ltern

ativ

es$3

,800

Febr

uary

, 200

95

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

(con

t.)

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

449

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

John

s H

opki

ns U

nive

rsity

10th

Ann

ual H

uman

Imm

unod

efic

ienc

y V

irus

Upd

ate

for T

he J

ohns

Hop

kins

Acq

uire

d Im

mun

e D

efic

ienc

y S

yndr

ome

Ser

vice

Cou

nty

Pro

gram

Nur

ses

and

Cas

e M

anag

ers

$2,8

50

John

s H

opki

ns U

nive

rsity

A C

ompr

ehen

sive

Rev

iew

of t

he R

ecom

men

datio

ns fo

r Vac

cina

tion

in In

fant

s, C

hild

ren,

Ado

lesc

ents

, and

Adu

lts$9

7,31

0

John

s H

opki

ns U

nive

rsity

Car

diov

ascu

lar T

opic

s at

Joh

ns H

opki

ns$5

,000

Key

ston

e S

ympo

sia

Sup

port

2009

Mee

ting

Sea

son

- Dire

ctor

's F

und

$25,

000

Kid

ney

Can

cer F

ound

atio

n20

08 K

idne

y C

ance

r Ass

ocia

tion

Ann

ual M

eetin

g$8

2,50

0

Littl

e Fa

lls H

ospi

tal

Mel

anom

a G

rand

Rou

nds

$1,8

50

Long

Isla

nd A

ssoc

iatio

n fo

r Acq

uire

d Im

mun

e D

efic

ienc

y S

yndr

ome

Car

eC

harit

able

Don

atio

n$5

,000

Lung

Can

cer A

llian

ceS

uppo

rt Th

eir M

issi

on:

Pro

vidi

ng P

atie

nt S

uppo

rt an

d A

dvoc

acy

for P

atie

nts

Livi

ng w

ith o

r at R

isk

of th

e D

isea

se$5

0,00

0

Lupu

s R

esea

rch

Inst

itute

Inco

rpor

ated

2008

For

um fo

r Dis

cove

ry$2

5,00

0

Lupu

s R

esea

rch

Inst

itute

Inco

rpor

ated

Life

with

out L

upus

Gal

a 20

08$1

5,00

0

Lym

phom

a R

esea

rch

Foun

datio

n20

08 N

orth

Am

eric

an E

duca

tiona

l For

um o

n Ly

mph

oma

$10,

000

Mar

ch O

f Dim

es B

irth

Def

ects

Nat

iona

l Fou

ndat

ion

Mar

ch o

f Dim

es G

reat

Che

fs o

f the

Tria

ngle

Spo

nsor

ship

$5,0

00

Mas

sach

uset

ts C

hapt

er o

f The

Am

eric

an A

cade

my

of P

edia

trics

13th

Ann

ual M

assa

chus

etts

Imm

uniz

atio

n A

ctio

n P

artn

ersh

ip: S

kills

Bui

ldin

g C

onfe

renc

e$3

,500

Mat

erni

ty C

are

Coa

litio

nM

ater

nal a

nd C

hild

Hea

lth P

rogr

ams

$1,0

00

Mat

erni

ty C

are

Coa

litio

nM

ater

nal a

nd C

hild

Hea

lth P

rogr

ams

$1,0

00

McM

aste

r Uni

vers

ity O

ntar

ioH

emat

olog

y/O

ncol

ogy

Dep

artm

ent B

riefin

gs:

Upd

ate

in th

e Tr

eatm

ent o

f Im

mun

e Th

rom

bocy

tope

nic

Pur

pura

$155

,750

Med

Inst

itute

Man

agin

g Tr

igly

cerid

es: A

Cru

cial

Com

pone

nt o

f Car

diov

ascu

lar R

isk

Red

uctio

n $7

2,80

5

Med

Inst

itute

, LLC

Key

Con

cept

s fo

r Unl

ocki

ng th

e D

oor t

o D

etec

tion

and

Man

agem

ent o

f Gen

ital H

erpe

s$6

0,00

0

Med

Inst

itute

, LLC

Upd

ates

in H

yper

tens

ion

$60,

000

Med

Inst

itute

, LLC

Upd

ates

in T

ype

2 D

iabe

tes

$60,

000

Med

ical

Col

lege

of O

hio

at T

oled

o Fo

unda

tion

Gra

nd R

ound

s: H

orm

ones

and

Hea

dach

e$2

,500

Med

ical

Soc

iety

of D

elaw

are

2008

San

Ant

onio

Bre

ast C

ance

r Upd

ate

$3,0

00

Med

scap

eM

anag

ing

the

Pat

ient

with

Pot

entia

l Gen

ital H

erpe

s an

d H

uman

Imm

unod

efic

ienc

y V

irus

Coi

nfec

tion

$18,

000

Med

scap

eN

ot S

o U

ncom

plic

ated

: Iss

ues

in th

e Tr

eatm

ent o

f Im

petig

o in

the

Age

of A

ntib

acte

rial R

esis

tanc

e$1

9,75

0

Med

scap

eP

rost

ate

Can

cer A

war

enes

s in

Prim

ary

Car

e: D

ilem

mas

and

Opp

ortu

nitie

s$2

2,87

5

Febr

uary

, 200

96

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

(con

t.)

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

450

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

Med

scap

eTr

igly

cerid

es in

Car

diov

ascu

lar D

isea

se R

isk

Man

agem

ent

$231

,000

Med

scap

eTr

igly

cerid

es in

Car

diov

ascu

lar D

isea

se R

isk

Man

agem

ent

$77,

000

Met

abol

ic E

ndoc

rine

Edu

catio

n Fo

unda

tion

6th

Ann

ual W

orld

Con

gres

s on

the

Insu

lin R

esis

tanc

e S

yndr

ome

$20,

000

Min

neso

ta C

olon

and

Rec

tal F

ound

atio

nC

olon

and

Rec

tal S

urge

ry: P

rInco

rpor

ated

iple

s an

d P

ract

ice

Cou

rse

2008

$5,5

00

Min

neso

ta P

harm

acis

ts A

ssoc

iatio

nFa

ll 20

08 C

hron

ic O

bstru

ctiv

e P

ulm

onar

y D

isea

se P

rogr

am$4

,000

Mon

tefio

re M

edic

al C

ente

rC

linic

al C

ase

Rev

iew

s in

Mig

rain

e M

anag

emen

t D

iagn

osis

; Acu

te M

anag

emen

t; P

reve

ntio

n; C

omor

bid

Dep

ress

ion

& A

nxie

ty$2

0,00

0

Mou

nt S

inai

Sch

ool o

f Med

icin

e of

New

Yor

k U

nive

rsity

Inno

vativ

e C

ance

r The

rapy

for T

omor

row

: C

hem

othe

rapy

Fou

ndat

ion

Sym

posi

um X

XV

I$2

2,50

0

Mou

ntai

n A

rea

Hea

lth E

duca

tion

Cen

ter,

Inc.

New

Dru

g U

pdat

e$1

,650

Nap

les

Com

mun

ity H

ospi

tal,

Inc.

Ant

icoa

gula

tion

Upd

ate

$9,3

50

Nat

iona

l Acq

uire

d Im

mun

e D

efic

ienc

y S

yndr

ome

Trea

tmen

t Adv

ocac

y P

roje

ctN

atio

nal A

cqui

red

Imm

une

Def

icie

ncy

Syn

drom

e Tr

eatm

ent A

dvoc

acy

Pro

ject

Tre

atm

ent E

duca

tion

Pro

gram

$120

,000

Nat

iona

l Ass

ocia

tion

for B

iom

edic

al R

esea

rch

Mem

bers

hip

Due

s fo

r 200

9$3

0,00

0

Nat

iona

l Ass

ocia

tion

for C

ontin

uing

Edu

catio

nC

hron

ic O

bstru

ctiv

e P

ulm

onar

y D

isea

se: E

nhan

cing

Rec

ogni

tion

and

Impr

ovin

g O

utco

mes

$100

,000

Nat

iona

l Ass

ocia

tion

of B

oard

s of

Pha

rmac

yD

inne

r Und

er th

e D

eser

t Sky

$5,0

00

Nat

iona

l Com

mun

ity P

harm

acis

ts A

ssoc

iatio

nU

pdat

e on

the

Dru

g Th

erap

y M

anag

emen

t of A

llerg

ic R

hini

tis$7

7,50

8

Nat

iona

l Ins

titut

e of

Sta

tistic

al S

cien

ces

Ren

ewal

of A

nnua

l Mem

bers

hip

$10,

000

Nat

iona

l Jew

ish

Med

ical

and

Res

earc

h C

ente

r31

st A

nnua

l Pul

mon

ary

and

Alle

rgy

Upd

ate

at K

eyst

one

$25,

000

Nat

iona

l Jew

ish

Med

ical

and

Res

earc

h C

ente

rM

akin

g th

e R

ight

Dia

gnos

is: T

he N

eed

for S

piro

met

ry$2

50,0

00

Nat

iona

l Lip

id A

ssoc

iatio

nN

atio

nal L

ipid

Ass

ocia

tion

Sat

ellit

e S

ympo

sium

, Mon

ogra

ph a

nd W

eb A

ctiv

ity

"Dys

lipid

emia

: A

sses

sing

C

oron

ary

Ris

k Fa

ctor

s in

the

Lipi

d P

rofil

e to

Opt

imiz

e In

terv

entio

n"$9

4,95

8

Nat

iona

l Lip

id A

ssoc

iatio

nN

atio

nal L

ipid

Ass

ocia

tion

Sat

ellit

e S

ympo

sium

, Mon

ogra

ph a

nd W

eb A

ctiv

ity

"Dys

lipid

emia

: A

sses

sing

C

oron

ary

Ris

k Fa

ctor

s in

the

Lipi

d P

rofil

e to

Opt

imiz

e In

terv

entio

n"$3

1,65

0

Nat

iona

l Mul

tiple

Scl

eros

is S

ocie

tyD

onat

ion

in M

emor

y of

Car

ol R

. Dew

alt

$100

Net

wor

k fo

r Con

tinui

ng M

edic

al E

duca

tion

Hep

arin

Indu

ced

Thro

mbo

cyto

peni

a G

rand

Rou

nds

Ser

ies

$59,

776

Net

wor

k fo

r Con

tinui

ng M

edic

al E

duca

tion

Pro

stat

e C

ance

r: K

eepi

ng A

brea

st o

f the

Cur

rent

Con

cept

s an

d La

test

Adv

ance

s" C

ME

Gra

nd R

ound

s P

rogr

am$2

3,57

4

New

Eng

land

Soc

iety

of A

llerg

y N

urse

sA

llerg

y N

urse

s C

ours

e$5

,000

New

Orle

ans

Acq

uire

d Im

mun

e D

efic

ienc

y S

yndr

ome

Task

For

ceN

ew O

rlean

s A

cqui

red

Imm

une

Def

icie

ncy

Syn

drom

e Ta

sk F

orce

Tw

enty

-Fift

h A

nniv

ersa

ry C

ampa

ign

$35,

000

New

Yor

k C

ount

y M

edic

al S

ocie

tyM

onth

ly E

duca

tiona

l Sym

posi

a$9

,500

Febr

uary

, 200

97

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

(con

t.)

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

451

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

New

Yor

k M

edic

al C

olle

geA

dvan

ces

in M

edic

al a

nd In

terv

entio

nal

Trea

tmen

ts fo

r Chr

onic

Obs

truct

ive

Pul

mon

ary

Dis

ease

$2,0

00

New

Yor

k S

tate

Soc

iety

of P

hysi

cian

Ass

ista

nts

Inc

New

Yor

k S

tate

Soc

iety

of P

hysi

cian

Ass

ista

nts

2008

Ann

ual C

ontin

uing

Med

ical

Edu

catio

n C

onfe

renc

e$5

,000

New

Yor

k S

tate

Soc

iety

of P

hysi

cian

Ass

ista

nts

Inc.

2008

Ann

ual C

onfe

renc

e$5

,000

New

Yor

k U

nive

rsity

Cha

ngin

g C

once

pts

in th

e M

anag

emen

t of H

uman

Imm

unod

efic

ienc

y V

irus

Dis

ease

200

9$4

5,00

0

Nor

th A

mer

ican

Cen

ter f

or C

ontin

uing

Med

ical

Edu

catio

n, L

LCB

est P

ract

ices

for t

he M

anag

emen

t of H

uman

Imm

unod

efic

ienc

y V

irus

Ass

ocia

ted

Neu

roco

gniti

ve D

isor

ders

$309

,500

Nor

th A

mer

ican

Cen

ter f

or C

ontin

uing

Med

ical

Edu

catio

n, L

LCP

atie

nt C

ente

red

App

roac

hes

to th

e M

anag

emen

t of H

uman

Imm

unod

efic

ienc

y V

irus/

Acq

uire

d Im

mun

e D

efic

ienc

y S

yndr

ome:

An

Upd

ate

on th

e S

afet

y, E

ffica

cy, a

nd D

osin

g of

Pro

teas

e In

hibi

tors

$190

,710

Nor

th C

arol

ina

Ass

ocia

tion

for B

iom

edic

al R

esea

rch

Ann

ual I

nstit

utio

nal M

embe

rshi

p D

ues

$57,

000

Nor

th C

arol

ina

Cha

pter

, Am

eric

an C

olle

ge o

f Phy

sici

ans

Nor

th C

arol

ina

Cha

pter

/Am

eric

an C

olle

ge o

f Phy

sici

ans

2009

Sci

entif

ic S

essi

on$3

,000

Nor

th C

arol

ina

Neu

rolo

gica

l Soc

iety

2009

Ann

ual M

eetin

g$5

,000

Nor

th C

arol

ina

Reg

iona

l Cha

pter

of t

he S

ocie

ty o

f Tox

icol

ogy

Sup

port

Two

Yea

rly M

eetin

gs in

200

9$1

,000

Nor

th C

arol

ina

Sta

te U

nive

rsity

Gra

duat

e Tr

aine

eshi

p 5/

16/0

8-12

/15/

08 In

stal

lmen

t Pay

men

t$7

,230

Nor

th C

arol

ina

Sta

te U

nive

rsity

Gra

duat

e Tr

aine

eshi

p 8

/15/

08-8

/15/

09 In

stal

lmen

t Pay

men

t$3

,615

Nor

th C

arol

ina

Sta

te U

nive

rsity

Gra

duat

e Tr

aine

eshi

p 5/

16/0

8-12

/15/

08 In

stal

lmen

t Pay

men

t$3

,615

Nor

th C

arol

ina

Sta

te U

nive

rsity

Gra

duat

e Tr

aine

eshi

p 8/

16/0

8-10

/15/

08 In

stal

lmen

t Pay

men

t$3

,720

Nor

th C

arol

ina

Sta

te U

nive

rsity

Gra

duat

e Tr

aine

eshi

p 5/

16/0

8-12

/15/

08 In

stal

lmen

t Pay

men

t$3

,660

Nor

th C

arol

ina

Sta

te U

nive

rsity

Gra

duat

e Tr

aine

eshi

p 5/

16/0

8-12

/15/

08 In

stal

lmen

t Pay

men

t$3

,660

Nor

th C

arol

ina

Sta

te U

nive

rsity

Gra

duat

e Tr

aine

eshi

p 8/

15/0

8-8/

15/0

9 In

stal

lmen

t Pay

men

t$3

,660

Nor

th C

arol

ina

Sta

te U

nive

rsity

- C

olle

ge o

f Hum

aniti

es &

Soc

ial S

cien

ces

Sup

port

Logi

c an

d C

ogni

tive

Sci

ence

Lec

ture

and

Und

ergr

adua

te In

tern

ship

$20,

000

Nor

th C

arol

ina

Sta

te U

nive

rsity

Phy

sica

l & M

athe

mat

ical

Sci

ence

s Fo

unda

tion,

Inc

Gra

duat

e P

rogr

am S

uppo

rt $1

03,9

50

Nor

th C

arol

ina

Vet

erin

ary

Con

fere

nce

2009

Nor

th C

arol

ina

Vet

erin

ary

Con

fere

nce

Spo

nsor

ship

- S

uppo

rt 14

th A

nnua

l Con

fere

nce

$4,7

50

Nor

thea

ster

n O

hio

Uni

vers

ities

Col

lege

of M

edic

ine

26th

Ann

ual I

nfec

tious

Dis

ease

Sem

inar

for t

he P

ract

icin

g P

hysi

cian

$3,0

00

Nor

thw

este

rn U

nive

rsity

2008

GS

K C

hem

istry

Sch

olar

Aw

ard

$20,

000

Nor

thw

este

rn U

nive

rsity

Lynn

Sag

e B

reas

t Sym

posi

um$4

1,25

0

Nor

thw

este

rn U

nive

rsity

Lynn

Sag

e S

ympo

sium

: Tar

gete

d Th

erap

ies:

Man

ipul

atin

g th

e B

iolo

gy o

f Bre

ast C

ance

r$4

4,00

0

Nor

thw

este

rn U

nive

rsity

The

45th

Ann

ual Y

ear i

n In

tern

al M

edic

ine

Con

fere

nce

$5,0

00

Febr

uary

, 200

98

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

(con

t.)

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

452

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

NY

U P

ost-G

radu

ate

Med

ical

Sch

ool

"Obe

sity

: Fu

ndam

enta

ls a

nd F

ront

iers

" Con

tinui

ng M

edic

al E

duca

tion

$25,

000

Okl

ahom

a A

cqui

red

Imm

une

Def

icie

ncy

Syn

drom

e C

are

Fund

Red

Tie

Nig

ht 2

009

$5,0

00

Om

nia

Edu

catin

g Y

our P

atie

nt: H

erpe

s S

impl

ex V

irus

Test

ing,

Cou

nsel

ing

& T

reat

men

t$1

49,2

50

Om

nia

Elim

inat

ing

the

Tran

smis

sion

of H

epat

itis

A a

nd B

thro

ugh

Vac

cina

tion:

Wom

en s

Hea

lth A

nnua

l Vis

it $1

02,0

00

Par

k N

icol

let I

nstit

ute

2008

Dia

bete

s an

d E

ndoc

rine

Upd

ate

$1,5

00

Par

k N

icol

let I

nstit

ute

2009

Crit

ical

Car

e U

pdat

e$1

,500

Par

kins

on's

Act

ion

Net

wor

k Fo

unda

tion

Par

kins

on A

ctio

n N

etw

ork:

15t

h A

nnua

l Mor

ris K

. Uda

ll A

war

ds D

inne

r$1

0,00

0

Par

kins

on's

Uni

ty W

alk,

Inc.

Par

kins

on s

Uni

ty W

alk

$5,0

00

Par

tner

ship

for Q

ualit

y M

edic

al D

onat

ions

2008

Mem

bers

hip

$15,

000

Pat

ient

Adv

ocat

e Fo

unda

tion,

Inc.

Pat

ient

Adv

ocat

e Fo

unda

tion

Co-

Pay

Rel

ief P

rogr

am A

utoi

mm

une

Dis

ease

Silo

$200

,000

Pen

nsyl

vani

a H

ospi

tal

Gra

nd R

ound

s: M

anag

ing

Diff

icul

t to

Man

age

Ast

hma

$1,6

50

Pen

nsyl

vani

a S

ocie

ty fo

r Bio

med

ical

Res

earc

hS

uppo

rt E

duca

tiona

l Ini

tiativ

es -

Trai

ning

, Edu

catio

n an

d P

rogr

ams

$57,

000

Pen

nsyl

vani

a V

eter

inar

y M

edic

al A

ssoc

iatio

nS

uppo

rt E

duca

tiona

l Pro

gram

s an

d In

itiat

ives

$7,6

00

Pha

rmac

ists

Soc

iety

of t

he S

tate

of N

ew Y

ork

Pha

rmac

y B

ased

Imm

uniz

atio

n D

eliv

ery

$5,0

00

Phi

lade

lphi

a H

ealth

and

Edu

catio

nal C

orp,

Join

t Nat

iona

l Com

mitt

ee 8

Impa

ct: N

ew A

ppro

ache

s to

Car

diov

ascu

lar R

isk

Red

uctio

n$5

,000

Pho

enix

ville

Hos

pita

l Can

cer C

ente

rD

onat

ion

in M

emor

y of

Mar

gare

t Him

es$1

00

Phy

sici

ans

Aca

dem

y fo

r Clin

ical

and

Man

agem

ent E

xcel

lenc

eC

ontin

uing

Med

ical

Edu

catio

n P

aper

Sym

posi

um o

n S

econ

dary

Imm

une

Thro

mbo

cyto

peni

c P

urpu

ra: S

emin

ars

in

Hem

atol

ogy

$30,

645

Phy

sici

ans

Aca

dem

y fo

r Clin

ical

and

Man

agem

ent E

xcel

lenc

eIm

mun

e Th

rom

bocy

tope

nic

Pur

pura

Onl

ine

Mon

ogra

ph S

erie

s$1

22,2

50

Phy

sici

ans

Edu

catio

n R

esou

rce

Gro

up L

P7t

h A

nnua

l Fut

ure

of B

reas

t Can

cer C

ongr

ess

$7,5

00

Phy

sici

ans

Edu

catio

n R

esou

rce

Gro

up L

PC

ontro

vers

ies

in B

reas

t Can

cer,

Adj

uvan

t and

Neo

adju

vant

The

rapy

$96,

250

Phy

sici

ans

Edu

catio

n R

esou

rce

Gro

up L

PE

volu

tion

in E

rbB

2 Ta

rget

ed T

hera

peut

ics

for B

reas

t Can

cer

$146

,144

Phy

sici

ans

Edu

catio

n R

esou

rce

Gro

up L

PIn

tegr

ated

Cur

ricul

um in

Chr

onic

Lym

phoc

ytic

Leu

kem

ia 2

009

$300

,000

Phy

sici

ans

Edu

catio

n R

esou

rce

Gro

up L

PO

ncol

ogy

Bes

t Pra

ctic

es A

dvan

ces

in B

reas

t Can

cer

$272

,000

Phy

sici

ans

Edu

catio

n R

esou

rce

Gro

up L

PO

ncol

ogy

Dia

logu

e on

Evo

lvin

g S

tand

ards

of C

are

for C

hron

ic L

ymph

ocyt

ic L

euke

mia

: O

ncoL

ogue

$25,

000

Phy

sici

ans

Edu

catio

n R

esou

rce

Gro

up L

PO

nlin

e B

reas

t Can

cer C

urric

ulum

$15,

000

Febr

uary

, 200

99

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

(con

t.)

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

453

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

Phy

sici

ans

Edu

catio

n R

esou

rce

Gro

up L

PO

nlin

e H

emat

olog

ic M

alig

nanc

ies

Cor

e C

urric

ulum

$15,

381

Phy

sici

ans

Edu

catio

n R

esou

rce

Gro

up L

PP

rogr

ess

in A

ntia

ngio

geni

c Th

erap

ies

for K

idne

y C

ance

r$2

7,05

0

Phy

sici

ans

Edu

catio

n R

esou

rce

Gro

up L

PR

ecep

tor B

ased

The

rape

utic

s: A

n In

tera

ctiv

e E

xpos

e$5

3,28

2

Phy

sici

ans

Edu

catio

n R

esou

rce

Gro

up, L

PC

onve

rsat

ions

with

the

Exp

erts

: A

Dis

cuss

ion

on N

ew D

ata

and

Hig

hlig

hts

from

the

2008

Am

eric

an S

ocie

ty o

f H

emat

olog

y M

eetin

g$2

0,00

0

Phy

sici

ans

Edu

catio

n R

esou

rce

Gro

up, L

PE

mer

ging

Pat

hway

s w

ith T

hera

peut

ic P

oten

tial i

n C

ance

r$1

25,0

00

Pie

dmon

t Ass

ocia

tion

of P

hysi

cian

Ass

ista

nts

2008

Fal

l Sem

inar

: Man

agem

ent o

f the

Alle

rgic

Ast

hma

Pat

ient

$2,0

00

Pitt

sbur

gh M

ercy

Fou

ndat

ion

Stre

et M

edic

ine

Inst

itute

, Sym

posi

a an

d N

ew P

rogr

ams

$350

,000

Pos

tgra

duat

e In

stitu

te fo

r Med

icin

e20

08 C

uttin

g E

dge

of S

leep

Con

fere

nce:

New

Res

earc

h; N

ew D

irect

ions

$15,

000

Pos

tgra

duat

e In

stitu

te fo

r Med

icin

eC

linic

al C

are

Opt

ions

Inde

pend

ent C

onfe

renc

e C

over

age

of th

e 20

08 A

nnua

l Mee

ting

of th

e A

mer

ican

Soc

iety

of

Hem

atol

ogy

$40,

000

Pos

tgra

duat

e In

stitu

te fo

r Med

icin

eTr

eatm

ent o

f Thr

ombo

cyto

peni

a in

Pat

ient

s W

ith C

hron

ic H

epat

itis

C: P

oten

tial I

mpa

ct o

n Tr

eatm

ent C

andi

dacy

an

d O

utco

mes

$123

,816

Pro

Com

2008

Pri-

Med

Mee

ting:

Ben

efit

to R

isk

Rat

ios

for T

reat

men

ts o

f Typ

e 2

Dia

bete

s $6

4,41

9

Pro

Com

Am

eric

an D

iabe

tes

Ass

ocia

tion

Nav

igat

ing

the

Sto

rm: D

ebat

ing

Effe

ctiv

e Tr

eatm

ent P

lans

with

Ora

l Age

nts

for

Dia

bete

s$1

5,00

0

Pro

Com

Con

tinui

ng M

edic

al E

duca

tion

Din

ner M

eetin

gs in

Typ

e 2

Dia

bete

s M

ellit

us$1

92,7

24

Pue

rto R

ico

Uro

logi

cal A

ssoc

iatio

n, In

c.Fi

fty-N

inth

Ann

ual M

eetin

g of

the

PR

Uro

logi

cal A

ssoc

iatio

n$1

0,00

0

Pul

mon

ary

Hyp

erte

nsio

n A

ssoc

iatio

n, In

c.P

atie

nt E

duca

tion

Pro

gram

$15,

000

Reg

ents

of t

he U

nive

rsity

of M

ichi

gan

6th

Ann

ual C

onte

mpo

rary

Issu

es in

Mul

tidis

cipl

inar

y B

reas

t Can

cer M

anag

emen

t$3

,000

Reg

ents

of t

he U

nive

rsity

of M

ichi

gan

Upd

ate

in P

ulm

onar

y &

Crit

ical

Car

e M

edic

ine

$3,0

00

Reg

ents

Uni

vers

ity o

f Cal

iforn

ia L

os A

ngel

esTh

ird A

nnua

l Adv

ance

s in

Sle

ep M

edic

ine

$5,0

00

Res

earc

h In

stitu

te fo

r Tex

as H

ealth

Res

ourc

esIm

prov

ing

Dee

p V

ein

Thro

mbo

sis

Pre

vent

ion

and

Det

ectio

n in

Hig

h R

isk

Spe

cial

ties

$34,

104

Res

earc

h to

Pra

ctic

e20

08 B

reas

t Can

cer U

pdat

e: A

n A

udio

Rev

iew

Jou

rnal

for M

edic

al O

ncol

ogis

ts$4

3,89

9

Res

earc

h to

Pra

ctic

eB

reas

t Can

cer U

pdat

e Jo

urna

l Clu

b: A

Mul

tidis

cipl

inar

y R

evie

w o

f New

Dat

a P

rese

nted

at t

he 2

008

San

Ant

onio

B

reas

t Can

cer S

ympo

sium

and

in O

ther

Rec

ent P

eer R

evie

wed

Pub

licat

ions

$25,

000

Res

earc

h to

Pra

ctic

eC

ance

r Con

fere

nce

Upd

ate:

An

Aud

io/P

odca

st R

evie

w o

f Key

Pre

sent

atio

ns a

nd P

oste

rs fr

om th

e 20

08 A

mer

ican

S

ocie

ty o

f Hem

atol

ogy

Ann

ual M

eetin

g$1

2,50

0

Res

earc

h to

Pra

ctic

eH

emat

olog

ic O

ncol

ogy

Upd

ate

200

9 E

ditio

n: A

n A

udio

Rev

iew

Jou

rnal

for M

edic

al O

ncol

ogis

ts a

nd

Hem

atol

ogis

ts$7

5,00

0

Res

earc

h to

Pra

ctic

eV

isiti

ng P

rofe

ssor

s: C

linic

al In

vest

igat

ors

Vis

it th

e C

linic

s of

Pra

ctic

ing

Onc

olog

ists

$62,

837

Res

pira

tory

Hea

lth A

ssoc

iatio

n of

Met

ropo

litan

Chi

cago

Res

pira

tory

Ral

ly$5

,000

Febr

uary

, 200

910

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

(con

t.)

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

454

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

Sai

nt M

ary'

s Fo

unda

tion

Nev

ada

Imm

uniz

atio

n C

oalit

ions

Imm

uniz

atio

n A

dvoc

acy

Nev

ada

Vac

cine

s Fo

r Chi

ldre

n O

nly

Tran

sitio

n$1

0,00

0

Sci

enta

Key

Con

cept

s fo

r Unl

ocki

ng th

e D

oor t

o D

etec

tion

and

Man

agem

ent o

f Gen

ital H

erpe

s$1

4,75

4

Sci

enta

Opt

imal

Man

agem

ent o

f Ast

hma:

Usi

ng th

e R

ight

Too

ls

$231

,626

Sci

enta

Opt

imiz

ing

Car

e D

eliv

ery

to P

atie

nts

with

Prim

ary

or S

econ

dary

Imm

une

Thro

mbo

cyto

peni

c P

urpu

ra$4

6,64

7

Sci

entis

ts C

ente

r for

Ani

mal

Wel

fare

Spo

nsor

Sci

entis

ts C

ente

r for

Ani

mal

Wel

fare

Mee

tings

and

Ses

sion

s fo

r 200

9$1

0,00

0

Sci

Med

A C

onte

mpo

rary

Issu

e in

Clin

ical

Med

icin

e: R

educ

ing

Ris

k of

Cor

onar

y H

eart

Dis

ease

in P

atie

nts

with

H

yper

trigl

ycer

idem

ia A

ssoc

iate

d M

ixed

Dys

lipid

emia

$196

,248

Sci

Med

A C

onte

mpo

rary

Issu

e in

Clin

ical

Med

icin

e: R

educ

ing

Ris

k of

Cor

onar

y H

eart

Dis

ease

in P

atie

nts

with

H

yper

trigl

ycer

idem

ia A

ssoc

iate

d M

ixed

Dys

lipid

emia

$33,

067

Sci

Med

Fish

Der

ived

Om

ega

3 Fa

tty A

cids

: Th

e R

ole

of E

icos

apen

taen

oic

(EP

A) a

nd D

ocos

ahex

aeno

ic (D

HA

) in

Hum

an

Hea

lth$3

5,75

5

Sci

Med

Mai

ntai

ning

Car

diov

ascu

lar H

ealth

in P

atie

nts

with

Mix

ed D

yslip

idem

ia:

Opt

imiz

ing

the

Man

agem

ent o

f H

yper

trigl

ycer

idem

ia a

nd N

on H

DL

Cho

lest

erol

$133

,606

Sci

Med

Red

ucin

g C

ardi

ovas

cula

r Ris

k in

Pat

ient

s w

ith M

ixed

Dys

lipid

emia

s: E

ffect

ive

Man

agem

ent o

f Trig

lyce

rides

and

N

on H

igh

Den

sity

Lip

opro

tein

Cho

lest

erol

$51,

972

Soc

ieda

d P

uerto

rique

ña d

e E

ndoc

rinol

ogia

y D

iabe

tolo

gia,

Inc.

SP

ED

Con

vent

ion

and

Pos

t Gra

duat

e D

iabe

tes

Cou

rse

$5,0

00

Soc

iety

for P

edia

tric

Der

mat

olog

y21

st A

nnua

l Pre

Am

eric

an A

cade

my

of D

erm

atol

ogy

Mee

ting

of th

e S

ocie

ty fo

r Ped

iatri

c D

erm

atol

ogy

$2,5

00

Soc

iety

for P

edia

tric

Der

mat

olog

y35

th A

nnua

l Mee

ting

for t

he S

ocie

ty fo

r Ped

iatri

c D

erm

atol

ogy

$5,0

00

Soc

iety

of T

oxic

olog

y20

09 S

ocie

ty o

f Tox

icol

ogy

Affi

liate

s D

ues

$2,5

00

Soc

iety

of T

oxic

olog

yD

iam

ond

Spo

nsor

ship

$12,

000

Soc

iety

of T

oxic

olog

y M

id-A

tlant

ic C

hapt

erC

orpo

rate

Spo

nsor

ship

Pro

gram

for 2

008-

2009

$1,0

00

Sou

ther

n C

alifo

rnia

Cha

pter

Bre

ath

of L

ife B

all

$3,0

00

St J

osep

h's

Hos

pita

l and

Med

ical

Cen

ter

Acu

te C

oron

ary

Syn

drom

e$3

,150

Sta

tes

Uni

ted

for B

iom

edic

al R

esea

rch

Sup

port

2009

pro

gram

s in

clud

ing

SU

BR

Exc

elle

nce

in B

iom

edic

al R

esea

rch

Aw

ard

$4,7

50

Sw

edis

hAm

eric

an H

ospi

tal

Car

diol

ogy

Mill

enni

um C

onfe

renc

e$3

,000

Task

For

ce F

or C

hild

Sur

viva

l And

Dev

elop

men

tLF

Sup

port

Cen

tre a

t Nog

uchi

$76,

000

Task

For

ce F

or C

hild

Sur

viva

l And

Dev

elop

men

tM

ectiz

an D

onat

ion

Pro

gram

$272

,884

Tem

ple

Uni

vers

ityA

cute

Cor

onar

y S

yndr

ome

$2,5

00

The

Am

eric

an A

cade

my

of N

euro

logy

Neu

rolo

gy U

pdat

e I:

Hea

dach

e$1

0,00

0

The

Cle

vela

nd C

linic

Edu

catio

nal F

ound

atio

n8t

h A

nnua

l Mul

tidis

cipl

inar

y G

enito

urin

ary

Onc

olog

y C

ours

e$2

,500

Febr

uary

, 200

911

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

(con

t.)

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

455

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

The

Cle

vela

nd C

linic

Edu

catio

nal F

ound

atio

nA

mer

ican

Soc

iety

of H

emat

olog

y R

evie

w$5

,000

The

Cle

vela

nd C

linic

Edu

catio

nal F

ound

atio

nC

leve

land

Clin

ic E

pile

psy

Sym

posi

a 20

09$1

0,00

0

The

Epi

leps

y S

tudy

Con

sorti

um, I

nc.

Tent

h A

ntie

pile

ptic

Dru

g Tr

ials

$3

5,00

0

The

Fran

ce F

ound

atio

n20

08 H

epar

in In

duce

d Th

rom

bocy

tope

nia

Con

tinui

ng E

duca

tion

Initi

ativ

e / A

mer

ican

Ass

ocia

tion

of C

ritic

al C

are

Nur

ses

Sym

posi

um$1

9,76

9

The

Fran

ce F

ound

atio

nA

chie

ving

Effe

ctiv

e B

reas

t Can

cer M

anag

emen

t: In

divi

dual

Pat

ient

Pro

files

and

Tar

gete

d Tr

eatm

ent S

trate

gies

$5,0

00

The

Fran

ce F

ound

atio

nE

xper

t Ins

ight

on

the

Futu

re o

f Tar

gete

d B

reas

t Can

cer T

hera

py$5

,000

The

Fran

ce F

ound

atio

nH

epar

in In

duce

d Th

rom

bocy

tope

nia

2008

Clin

ical

Cur

ricul

um In

itiat

ive

$197

,308

The

Fran

ce F

ound

atio

nIm

mun

e Th

rom

bocy

tope

nic

Pur

pura

200

8 C

linic

al C

urric

ulum

Initi

ativ

e$3

49,8

51

The

Fran

ce F

ound

atio

nIm

plem

entin

g a

Mul

timod

al M

anag

emen

t Stra

tegy

for P

osto

pera

tive

Ileus

: Clin

ical

Ass

essm

ent,

Mon

itorin

g, a

nd

Trea

tmen

t Sup

port

for t

he N

ursi

ng C

omm

unity

$116

,675

The

Fran

ce F

ound

atio

nP

hase

I of

the

2009

Ven

ous

Thro

mbo

sis

Em

bolis

m C

urric

ulum

: Int

er D

isci

plin

ary

Hos

pita

l Gra

nd R

ound

s$1

52,2

30

The

Fran

ce F

ound

atio

nP

ri M

ed U

pdat

es: R

evis

iting

the

Rol

e of

Bet

a B

lock

ers

in th

e M

anag

emen

t of H

yper

tens

ion

A C

lose

r Loo

k at

C

ompl

icat

ed C

ases

$31,

753

The

Fran

ce F

ound

atio

nTh

e B

reas

t Can

cer C

linic

al C

ompa

nion

: A S

umm

atio

n of

Clin

ical

Evi

denc

e fro

m 2

007

$5,0

00

The

Leuk

emia

& L

ymph

oma

Soc

iety

Hig

hlig

hts

of A

mer

ican

Soc

iety

of H

emat

olog

y 20

08$5

,000

The

Leuk

emia

& L

ymph

oma

Soc

iety

Hig

hlig

hts

of A

mer

ican

Soc

iety

of H

emat

olog

y 20

08$5

,000

The

Med

ical

Cen

ter,

Inc.

2008

Col

umbu

s D

iabe

tes

Uni

vers

ity$5

,000

The

Pen

nsyl

vani

a S

tate

Uni

vers

ityD

erm

atol

ogy

Gra

nd R

ound

s$5

,000

The

Pen

nsyl

vani

a S

tate

Uni

vers

ityN

euro

logy

Gra

nd R

ound

s: O

utpa

tient

Man

agem

ent o

f Hea

dach

e$3

,550

The

Phy

sici

ans

Aca

dem

y fo

r Clin

ical

and

Man

agem

ent E

xcel

lenc

eP

atie

nts

at R

isk

for V

enou

s Th

rom

boem

bolis

m:

Exp

lorin

g O

ptio

ns fo

r Saf

e an

d E

ffect

ive

Pro

phyl

axis

$382

,455

The

Uni

vers

ity o

f Ariz

ona

Foun

datio

nS

atel

lite

Sym

posi

um H

eld

in C

onju

nctio

n w

ith A

nnua

l Sci

entif

ic M

eetin

g$1

9,95

2

The

Uni

vers

ity o

f Con

nect

icut

Sch

ool o

f Pha

rmac

yM

eetin

g th

e Jo

int C

omm

issi

on o

n th

e A

ccre

dita

tion

of H

ealth

care

Org

aniz

atio

ns A

ntic

oagu

latio

n P

atie

nt S

afet

y G

oals

: Cas

e S

tudi

es a

nd L

ocal

Exp

erie

nce

$3,0

00

Toge

ther

Inco

rpor

ated

Hav

e Y

our V

oice

Hea

rd b

y O

ffici

als

and

Pro

vide

rs$5

,000

Tran

slat

iona

l Onc

olog

y R

esea

rch

Inte

rnat

iona

lS

pons

or th

e U

CLA

/TO

RI O

ncol

ogy

Net

wor

k R

esea

rch

Con

fere

nce

$10,

000

Trea

tmen

t Res

earc

h In

stitu

teS

ubst

ance

Abu

se T

reat

men

t and

Pre

vent

ion

Res

earc

h P

rogr

ams

$1,0

00

Trin

itas

Hos

pita

lTh

e E

volu

tion

of P

erso

naliz

ed M

edic

ine

in B

reas

t Can

cer D

iagn

osis

and

Tre

atm

ent

$3,0

00

Trus

tees

of C

olum

bia

Uni

vers

ity in

the

City

of N

ew Y

ork

Dia

gnos

is, P

reve

ntio

n an

d Tr

eatm

ent o

f Mig

rain

e an

d B

ipol

ar D

isor

der

$46,

190

Febr

uary

, 200

912

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

(con

t.)

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

456

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

Trus

tees

of t

he U

nive

rsity

of P

enns

ylva

nia

2008

Exe

cutiv

e M

anag

emen

t Pro

gram

for P

harm

acy

Lead

ers

$127

,028

Trus

tees

of t

he U

nive

rsity

of P

enns

ylva

nia

6th

Ann

ual N

ew In

sigh

ts In

to C

oagu

latio

n$5

,000

Trus

tees

of t

he U

nive

rsity

of P

enns

ylva

nia

Cov

erag

e of

Imm

une

Thro

mbo

cyto

peni

c P

urpu

ra a

t the

Am

eric

an S

ocie

ty o

f Hem

atol

ogy:

50t

h A

nnua

l Mee

ting

$45,

000

Uni

vers

ity H

ospi

tal

Neu

rolo

gy S

ympo

sium

: Ess

entia

ls fo

r You

r Pra

ctic

e$2

,500

Uni

vers

ity o

f Ark

ansa

s fo

r Med

ical

Sci

ence

sN

euro

logy

Upd

ate

2008

$3,0

00

Uni

vers

ity o

f Cal

iforn

ia B

erke

ley

2008

GS

K C

hem

istry

Sch

olar

Aw

ard

$20,

000

Uni

vers

ity o

f Cal

iforn

ia R

egen

ts9t

h A

nnua

l Uni

vers

ity o

f Cal

iforn

ia S

an D

iego

Hea

rt Fa

ilure

and

Hyp

erte

nsio

n S

ympo

sium

for P

rimar

y C

are

and

Inte

rnal

Med

icin

e P

hysi

cian

s$1

0,00

0

Uni

vers

ity o

f Cal

iforn

ia R

egen

tsW

hat t

o A

dd A

fter M

etfo

rmin

: Ind

ivid

ualiz

ed, E

ffect

ive

and

Saf

e C

linic

al S

trate

gies

for D

urab

le G

lyce

mic

Con

trol

in P

atie

nts

with

Typ

e 2

Dia

bete

s$1

92,9

27

Uni

vers

ity o

f Cal

iforn

ia S

an F

ranc

isco

25th

Sym

posi

um: C

ardi

olog

y fo

r the

Pra

ctiti

oner

$2,5

00

Uni

vers

ity o

f Cal

iforn

ia S

an F

ranc

isco

Sup

port

2009

Wor

ksho

p S

ympo

sium

Foc

used

on

Inno

vativ

e an

d R

ecen

t Dev

elop

men

ts in

Tec

hnol

ogy

for

Pro

duct

ion

of M

embr

ane

Pro

tein

s$2

,500

Uni

vers

ity o

f Cal

iforn

ia S

an F

ranc

isco

The

Med

ical

Man

agem

ent o

f Hum

an Im

mun

odef

icie

ncy

Viru

s/A

cqui

red

Imm

une

Def

icie

ncy

Syn

drom

e$7

,500

Uni

vers

ity o

f Cin

cinn

ati

Rec

laim

ing

Con

trol:

Life

Afte

r Bre

ast C

ance

r 12t

h A

nnua

l Cin

cinn

ati C

ompr

ehen

sive

Bre

ast C

ance

r Con

fere

nce

$2,5

00

Uni

vers

ity o

f Flo

rida

Clin

ical

Cha

lleng

es in

Epi

leps

y C

are:

A C

ase

Bas

ed A

ppro

ach

$3,0

00

Uni

vers

ity o

f Mar

ylan

d S

choo

l of M

edic

ine

Adv

ance

s in

Epi

leps

y M

anag

emen

t: C

halle

ngin

g Is

sues

and

Cha

lleng

ing

Pop

ulat

ions

$5,0

00

Uni

vers

ity o

f Med

icin

e an

d D

entis

try o

f New

Jer

sey

Med

ical

Gra

nd R

ound

s G

ener

al In

tern

al M

edic

ine

$1,4

20

Uni

vers

ity o

f Neb

rask

a M

edic

al C

ente

r20

08 P

ract

icin

g C

linic

ians

Exc

hang

e: S

tem

min

g th

e Ti

de: T

imel

y In

terv

entio

n to

Hal

t Mig

rain

e P

rogr

essi

on$9

3,75

0

Uni

vers

ity o

f Nor

th C

arol

ina

Gra

duat

e Tr

aine

eshi

p 5/

16/0

8-5/

15/0

9 In

stal

lmen

t Pay

men

t$3

,024

Uni

vers

ity o

f Nor

th C

arol

ina

Gra

duat

e Tr

aine

eshi

p 5/

16/0

8-5/

15/0

9 In

stal

lmen

t Pay

men

t$3

,024

Uni

vers

ity o

f Nor

th C

arol

ina

Gra

duat

e Tr

aine

eshi

p 5/

16/0

8-5/

15/0

9 In

stal

lmen

t Pay

men

t$3

,024

Uni

vers

ity o

f Nor

th C

arol

ina

Gra

duat

e Tr

aine

eshi

p 5/

16/0

8-5/

15/0

9 In

stal

lmen

t Pay

men

t$3

,024

Uni

vers

ity o

f Nor

th C

arol

ina

at C

hape

l Hill

Sch

olar

ship

Aw

ard

$28,

447

Uni

vers

ity o

f Nor

th C

arol

ina

at C

hape

l Hill

Onc

olog

y Fe

llow

ship

7/1

/08-

12/3

1/08

$1,0

00

Uni

vers

ity o

f Nor

th C

arol

ina

at C

hape

l Hill

Sup

port

Spr

ing

and

Fall

2009

Sem

inar

Ser

ies

on A

naly

tical

Che

mis

try$5

,000

Uni

vers

ity o

f Nor

th C

arol

ina

at C

hape

l Hill

Sch

ool o

f Pha

rmac

yD

rug

Dev

elop

men

t Fel

low

ship

$50,

473

Uni

vers

ity o

f Nor

th C

arol

ina

at C

hape

l Hill

Sch

ool o

f Pha

rmac

y A

lum

ni A

ssoc

iatio

nU

nive

rsity

of N

orth

Car

olin

a P

harm

acy

Alu

mni

Ass

ocia

tion

Gol

f Tou

rnam

ent

$5,0

00

Febr

uary

, 200

913

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

(con

t.)

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

457

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

Org

aniz

atio

n N

ame

Pro

ject

Des

crip

tion

Am

ount

Gra

nts

& C

harit

able

Con

trib

utio

ns to

US

Bas

ed H

ealth

care

Org

aniz

atio

ns

4th

Qua

rter

200

8

Uni

vers

ity o

f Pitt

sbur

gh O

ffice

of t

he C

ompt

rolle

rE

duca

ting

Phy

sici

ans

in T

heir

Com

mun

ities

: Im

mun

izat

ion

Pro

gram

$12,

000

Uni

vers

ity o

f Sou

ther

n C

alifo

rnia

The

47th

Ann

ual U

nive

rsity

of S

outh

ern

Cal

iforn

ia W

eil S

ympo

sium

on

Crit

ical

Car

e an

d E

mer

genc

y M

edic

ine

$3,0

00

Uni

vers

ity o

f Sou

ther

n N

evad

aIm

mun

izat

ion

Upd

ate:

200

9$2

,500

Uni

vers

ity o

f Tex

as S

yste

mU

rolo

gic

Onc

olog

y: A

dvan

ces

in C

linic

al P

ract

ice

$2,5

00

Uni

vers

ity o

f Was

hing

ton

The

AC

CO

RD

Tria

l: W

hat D

id W

e Le

arn

Abo

ut G

luco

se C

ontro

l in

Type

2 D

iabe

tes

Rel

ated

to T

otal

Mor

talit

y an

d M

acro

Vas

cula

r Car

diov

ascu

lar D

isea

se E

vent

s?$1

,255

Uni

vers

ity o

f Wis

cons

in S

yste

mP

eerV

iew

Mul

ti S

uppo

rted

in R

evie

w, “

Hum

an Im

mun

odef

icie

ncy

Viru

s, A

ging

, and

Chr

onic

Com

orbi

ditie

s”

(PA

0483

0FC

)$8

,000

V F

ound

atio

nK

ay Y

ow/W

BC

A C

ance

r Fun

d In

frast

ruct

ure

Sup

port

$100

,000

Van

derb

ilt U

nive

rsity

Van

derb

ilt In

gram

Can

cer C

ente

r 2nd

Ann

ual A

mer

ican

Soc

iety

of H

emat

olog

y R

evie

w S

ympo

sium

$7,5

00

Van

derb

ilt U

nive

rsity

Med

ical

Cen

ter

GS

K R

esea

rch

& E

duca

tion

Foun

datio

n fo

r Car

diov

ascu

lar D

isea

se A

war

d P

rogr

am fo

r You

ng In

vest

igat

ors

- A

war

d W

inne

r $5

5,00

0

Wak

e Fo

rest

Uni

vers

ity H

ealth

Sci

ence

s11

th A

nnua

l Dia

bete

s M

anag

emen

t Con

fere

nce

$3,0

00

Was

hing

ton

Uni

vers

ityA

dvan

ces

in D

iagn

osis

and

Tre

atm

ent o

f Hem

atol

ogic

Mal

igna

ncie

s$2

,500

Was

hing

ton

Uni

vers

ityFa

mili

al G

astro

inte

stin

al C

ance

r Syn

drom

es: G

enet

ics,

Dia

gnos

is, M

anag

emen

t and

Fut

ure

Dire

ctio

ns$5

,000

Way

ne S

tate

Uni

vers

ityIm

prov

ed Im

mun

izat

ion

Com

plia

nce

$20,

000

Wes

t Che

ster

Uni

vers

ity o

f Pen

nsyl

vani

aS

umm

er 2

008

Inte

rnsh

ip

$540

Wes

tern

Soc

iety

of A

llerg

y an

d Im

mun

olog

y47

th A

nnua

l Sci

entif

ic S

essi

on$3

0,00

0

WH

YY

Littl

e B

ites,

Big

Ste

ps: E

arly

Chi

ldho

od N

utrit

ion

and

Fitn

ess

Pro

gram

$10,

000

Wis

cons

in A

ssoc

iatio

n of

Ost

eopa

thic

Phy

sici

ans

and

Sur

geon

sW

isco

nsin

Nor

thw

ood

Fam

ily P

ract

ice

Upd

ate

Fall

2008

Con

fere

nce

$2,0

00

You

ng M

ens

Chr

istia

n A

ssoc

iatio

n of

Met

ropo

litan

Was

hing

ton

Cal

omiri

s H

ealth

and

Fitn

ess

Pro

gram

$1,0

00

Febr

uary

, 200

914

App

endi

x K

: G

SK P

ublic

Rel

atio

n Ta

ctic

s 5

& 6

(con

t.)

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

P

age

458

Sou

rce:

Ret

rieve

d O

ctob

er 2

5, 2

009,

from

http

://us

.gsk

.com

/doc

s-pd

f/res

pons

ibili

ty/g

sk-g

rant

s-4q

2008

.pdf

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

Pag

e 45

9

App

endi

x L:

Pro

pose

d G

SK

PR

Pla

n B

udge

t & C

alen

dar

Key

Pub

lic:

Con

sum

ers

& P

rosp

ects

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

BU

DG

ET

Stra

tegy

:C

orpo

rate

-wid

e co

st re

duct

ion

prog

ram

s su

ch a

s le

aner

m

anuf

actu

ring

proc

esse

s th

at re

duce

cos

ts a

nd g

loba

l out

sour

cing

Per U

nit C

ost

# R

uns/

Item

s#

Peop

le#

Hou

rs/M

onth

/Per

son

Tota

l Exp

ense

Tact

ics

Qnt

y

Adv

ertis

ing:

Pos

ters

for P

rom

otin

g Le

an B

usin

ess

Pro

cess

es, t

o be

dis

play

in c

onsp

icuo

us lo

catio

ns w

ithin

all

wor

k ar

eas

20,0

00P

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

$020

,000

.00

na$3

,000

Com

mun

icat

ion:

Int

erna

l E-m

ail b

last

rem

inde

rs o

f Kai

zen

and

Five

S.,

1 C

omm

unic

atio

n pe

r qua

rter.

41

11

1$1

004.

00na

$400

Trai

ning

: K

aize

n &

Fiv

e S

Cer

tific

atio

n an

d Tr

aini

ng fo

r all

GS

K

Em

ploy

ees

120,

000

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

al$1

,500

120,

000.

00na

$180

,000

,000

Pre

ss R

elea

ses:

Ann

ounc

e Le

an P

rogr

am fo

cuse

d on

ach

ievi

ng

5% in

con

sum

er p

rice

redu

ctio

ns12

010

1010

1010

1010

1010

1010

10$1

0012

0.00

na$1

2,00

0

Pre

ss R

elea

ses:

Ann

ounc

e 7%

Pric

e R

educ

tion

to C

onsu

mer

s an

d P

rosp

ects

300

100

100

100

$100

300.

00$3

0,00

0

Pro

mot

iona

l Ite

ms:

Des

ktop

Toy

s w

ith K

aize

n &

Fiv

e S

Log

o, to

re

min

d E

mpl

oyee

s da

ily o

f lea

n bu

sine

ss p

roce

sses

60,0

00P

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

$260

,000

.00

na$1

20,0

00

Gra

nd T

otal

Con

sum

er &

Pro

spec

t$1

80,1

65,4

00

Eva

luat

ion:

Con

sum

er S

urve

ys, T

arge

t 90%

Aw

aren

ess

of G

SK

C

onsu

mer

pric

e re

duct

ions

10

00

00

00

00

00

1$1

0,00

01.

00na

$10,

000

Eva

luat

ion:

Red

uctio

n in

ope

ratin

g an

d in

vent

ory

expe

nses

by

7%,

of w

hich

a 5

% in

pro

duct

pric

ing

will

be

redu

ced

by 5

% a

cros

s al

l pr

oduc

t lin

es.

12na

nana

nana

nana

nana

nana

nana

nana

-

Gra

nd T

otal

Eva

luat

ion

of$1

0,00

0

*Bas

ed o

ff 30

sec

ond

TV a

d pr

oduc

tion

expe

nses

. Ret

rieve

d O

ctob

er 1

9, 2

009,

w

ww

.gae

bler

.com

/Tel

evis

ion-

Adv

ertis

ing-

Cos

ts.h

tm

Cor

pora

te-w

ide

cost

redu

ctio

n pr

ogra

ms

Cor

pora

te-w

ide

cost

redu

ctio

n pr

ogra

ms

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

Pag

e 46

0

App

endi

x L:

Pro

pose

d G

SK

PR

Pla

n B

udge

t & C

alen

dar (

cont

.)

Key

Pub

lic:

Con

sum

ers

& P

rosp

ects

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

BU

DG

ET

Stra

tegy

:D

evel

op o

r co-

foun

d ac

cess

ibili

ty to

med

icin

e pr

ogra

ms

and

othe

r he

alth

care

initi

ativ

es th

roug

h ha

nds-

on tr

aini

ng.

Per U

nit C

ost

# R

uns/

Item

s#

Peop

le#

Hou

rs/M

onth

/Per

son

Tota

l Exp

ense

Tact

ics

Qnt

yA

dver

tisin

g: 3

0 se

cond

nat

iona

l tel

evis

ion

Ad

prod

uctio

n*10

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

al$3

50,0

0010

na$3

,500

,000

Adv

ertis

ing:

30

seco

nds

Air

Tim

e, N

atio

nal T

elev

isio

n4,

320

360

360

360

360

360

360

360

360

360

360

360

360

$175

,000

4320

na$7

56,0

00,0

00C

omm

unic

atio

n:

Ext

erna

l E-m

ail b

last

s re

min

ders

to P

atie

nt

Adv

ocat

es 2

x pe

r mon

th24

22

22

22

22

22

22

$200

24.0

0na

$4,8

00

Eve

nt:

Dis

play

, Equ

ipm

ent,

Pro

ps, a

nd A

Vna

nana

nana

nana

nana

nana

nana

$20,

000

1.00

$20,

000

Inte

rnet

: D

edic

ated

web

site

& P

rogr

am R

egis

tratio

n P

orta

l1

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

al$2

0,00

01

perp

etua

l$2

0,00

0In

tern

et:

Dev

elop

men

t and

Dep

loym

ent o

f Int

erne

t bas

ed

sync

hron

ous

and

asyn

chro

nous

Pre

nata

l, in

fant

and

chi

ldca

re

heal

th c

once

rns.

120

1010

1010

1010

1010

1010

1010

$1,5

0012

0$1

80,0

00

Prin

ting:

Rx

Car

d &

Med

ical

Prin

ting

1,00

0,00

0P

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

$51,

000,

000.

00na

$5,0

00,0

00

Pre

ss R

elea

ses:

Ann

ounc

e P

resc

riptio

n &

Med

ical

Car

e P

rogr

am

spec

ifica

lly d

esig

nate

d fo

r Mot

hers

, pre

nata

l car

e, a

nd in

fant

s12

010

1010

1010

1010

1010

1010

10$1

,500

120.

00na

$180

,000

Pre

ss R

elea

ses:

Ann

ounc

e 7%

Pric

e R

educ

tion

to C

onsu

mer

s an

d P

rosp

ects

300

100

100

100

$100

300.

00$3

0,00

0

Pre

fere

ntia

l Pric

ing:

M

edic

al P

rodu

cts

& S

ervi

ces

for M

othe

rs,

pren

atal

car

e an

d in

fant

s60

,000

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

al$2

60,0

00.0

0na

$120

,000

Prin

t: A

sses

smen

ts a

nd C

ours

e E

valu

atio

n C

ards

1,00

0,00

0P

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

$01,

000,

000.

00$2

50,0

00Tr

aini

ng E

vent

s: H

ost E

vent

in la

rge,

eas

ily a

cces

sibl

e ve

nue,

w

here

han

ds-o

n pr

enat

al tr

aini

ng a

nd in

fant

/chi

ldca

re h

ealth

care

is

sues

are

pre

sent

ed12

11

11

11

11

11

11

$10,

000

12.0

0un

dete

rmin

ed$1

20,0

00

Per

sonn

el:

Eve

nt M

anag

ers,

Lab

or H

ours

5P

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

$35

216.

005

40$3

02,4

00P

erso

nnel

: G

roun

d Lo

gist

ics,

Lab

or H

ours

20P

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

$20

216.

0020

32$1

38,2

40P

erso

nnel

: C

reat

ive

Team

, Lab

or H

ours

5P

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

$25

full-

time

emp

519

60$2

45,0

00G

rand

Tot

al C

onsu

mer

& P

rosp

ect

$766

,110

,440

Dev

elop

/co-

foun

d A

cces

sibi

lity

to M

edic

ines

Pro

gram

Eva

luat

ion:

100

,000

in o

fflin

e ha

nds-

on tr

aini

ng e

vent

atte

ndan

ce$2

,500

12.0

0$3

0,00

0E

valu

atio

n: 1

,000

,000

in o

nlin

e co

mpl

etio

n of

vid

eo tr

aini

ng,

dete

rmin

ed th

roug

h on

line

regi

stra

tion

& c

ours

e da

ta$1

1,00

0,00

0.00

$500

,000

Eva

luat

ion:

Tra

inin

g as

sess

men

t with

a p

assi

ng s

ore

of 8

0%$1

1,10

0,00

0.00

$550

,000

Eva

luat

ion:

Con

sum

er S

urve

ys, T

arge

t 90%

Aw

aren

ess

of G

SK

M

othe

r, In

fant

and

Chi

ld P

resc

riptio

n an

d M

edic

al C

are

Pro

gram

10

00

00

00

00

00

1$1

0,00

01.

00na

$10,

000

Gra

nd T

otal

Eva

luat

ion

of$1

,090

,000

Dev

elop

/co-

foun

d A

cces

sibi

lity

to M

edic

ines

Pro

gram

*Bas

ed o

ff 30

sec

ond

TV a

d pr

oduc

tion

expe

nses

. Ret

rieve

d O

ctob

er 1

9, 2

009,

w

ww

.gae

bler

.com

/Tel

evis

ion-

Adv

ertis

ing-

Cos

ts.h

tm

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

Pag

e 46

1

App

endi

x L:

Pro

pose

d G

SK

PR

Pla

n B

udge

t & C

alen

dar (

cont

.)

Key

Pub

lic:

Con

sum

ers

& P

rosp

ects

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

BU

DG

ET

Stra

tegy

:M

ass

Com

mun

icat

ion

of G

SK

Pat

ient

Pro

gram

sPe

r Uni

t Cos

t#

Run

s/Ite

ms

# Pe

ople

# H

ours

/Mon

th/P

erso

nTo

tal E

xpen

se

Tact

ics

Qnt

yA

dver

tisin

g: I

nter

net B

anne

r Ads

1,00

0,00

0,00

010

0010

0010

0010

0010

0010

0010

0010

0010

0010

0010

0010

00$0

1,00

0,00

0,00

0na

$250

,000

,000

Adv

ertis

ing:

30

seco

nd n

atio

nal t

elev

isio

n A

d pr

oduc

tion*

10P

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

$350

,000

10na

$3,5

00,0

00A

dver

tisin

g: 3

0 se

cond

s A

ir Ti

me,

Nat

iona

l Tel

evis

ion

4,32

036

036

036

036

036

036

036

036

036

036

036

036

0$1

75,0

0043

20na

$756

,000

,000

Adv

ertis

ing:

Mag

azin

es48

040

4040

4040

4040

4040

4040

40$1

5,00

048

0na

$7,2

00,0

00A

dver

tisin

g: N

ewsp

rint

240

2020

2020

2020

2020

2020

2020

$10,

000

240

na$2

,400

,000

Adv

ertis

ing:

Rad

io1,

800

150

150

150

150

150

150

150

150

150

150

150

150

$750

1800

$1,3

50,0

00C

olla

tera

l: C

orpo

rate

Web

site

1P

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

$30,

000

1pe

rpet

ual

$30,

000

Col

late

ral:

Lea

ve B

ehin

d B

roch

ures

10,0

0083

483

483

483

483

383

383

383

383

383

383

383

3$3

1000

0na

$30,

000

Inte

rnet

: D

edic

ated

web

site

& P

rogr

am R

egis

tratio

n P

orta

l1

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

al$2

0,00

01

perp

etua

l$2

0,00

0In

tern

et:

Pro

mot

e P

atie

nt P

rogr

ams

thro

ugh

Soc

ial M

edia

& V

iral

Mar

ketin

g on

10

soci

al m

edia

site

s10

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

al$2

50,0

00pe

rpet

ual

perp

etua

l$2

50,0

00

PO

S:

Poi

nt o

f Sal

e D

ispl

ay K

iosk

s, d

istri

bute

d at

loca

l P

harm

acie

s. K

iosk

allo

ws

Mot

hers

to re

gist

er fo

r ser

vice

s.10

0,00

0P

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

$7,5

0050

,000

.00

$375

,000

,000

Per

sonn

el:

Cre

ativ

e Te

am20

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

al$5

0fu

ll tim

e em

p20

1960

$1,9

60,0

00G

rand

Tot

al C

onsu

mer

& P

rosp

ect

$1,3

97,7

40,0

00M

ass

Com

mun

icat

ion

of G

SK P

atie

nt P

rogr

ams

Eva

luat

ion:

75

% v

iew

ersh

ip s

houl

d be

ach

ieve

d th

roug

h tra

ditio

nal a

dver

tisin

g an

d pu

blic

rela

tion

met

hods

incl

udin

g ou

tdoo

r, te

levi

sion

and

radi

o. (c

ontra

ct N

eils

on R

atin

gs)

Eva

luat

ion:

25%

of v

iew

ers

shou

ld b

e at

tain

ed th

roug

h in

trodu

ctio

n of

new

med

ia s

uch

as a

ded

icat

ed In

tern

et p

rogr

am

regi

stra

tion

porta

l; pr

omot

ion

thro

ugh

soci

al m

edia

and

use

pr

opag

anda

thro

ugh

You

-tube

. (co

ntra

ct N

eils

on R

atin

gs)

Eva

luat

ion:

Rea

ch 1

0,00

0,00

0,00

0 in

vie

wer

ship

with

in 1

2 m

onth

s co

ntra

ct N

eils

on R

atin

gspe

rpet

ual

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

al$5

,000

,000

perp

etua

lna

$5,0

00,0

00

Gra

nd T

otal

Eva

luat

ion

of$5

,000

,000

Mas

s C

omm

unic

atio

n of

GSK

Pat

ient

Pro

gram

s*B

ased

off

30 s

econ

d TV

ad

prod

uctio

n ex

pens

es. R

etrie

ved

Oct

ober

19,

200

9,

ww

w.g

aebl

er.c

om/T

elev

isio

n-A

dver

tisin

g-C

osts

.htm

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

Pag

e 46

2

App

endi

x L:

Pro

pose

d G

SK

PR

Pla

n B

udge

t & C

alen

dar (

cont

.)

Key

Pub

lic:

Dom

estic

Reg

ulat

ors,

Gov

ernm

ent,

Polic

y M

aker

s &

Lo

bbyi

sts

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

BU

DG

ET

Stra

tegy

:

Mai

ntai

n a

voic

e/pr

esen

ce in

cur

rent

hea

lthca

re is

sues

thro

ugh

parti

cipa

tion

in in

dust

ry o

rgan

izat

ions

, inf

luen

cing

pub

lic o

pini

on,

and

lobb

ying

gov

ernm

ent l

eade

rshi

p. In

form

& m

otiv

ate

publ

ic o

f he

alth

care

bes

t pra

ctic

es/a

ppro

ache

s

Per U

nit C

ost

# R

uns/

Item

s#

Peop

le#

Hou

rs/M

onth

/Per

son

Tota

l Exp

ense

Tact

ics

Qnt

yC

olla

tera

l: In

vita

tions

& S

ave

the

Dat

e R

emin

ders

1,00

050

050

00

00

00

00

00

0$5

1,00

0.00

nana

$5,0

00C

olla

tera

l: D

igita

l & P

rint P

ress

Kits

1,00

01

00

00

00

00

00

0$3

1,00

0.00

nana

$3,0

00C

olla

tera

l: P

ress

Rel

ease

s60

2020

200

00

00

00

00

$15

60.0

0na

na$9

00E

vent

Col

late

ral:

Info

Kits

1,00

00

010

000

00

00

00

00

$10

1,00

0.00

nana

$10,

000

Eve

nts:

Hos

t Ann

ual 5

-Day

Hea

lthca

re S

umm

it in

Mar

ch1

00

10

00

00

00

00

$50,

000

1.00

nana

$50,

000

Eve

nts:

Ven

ue R

eser

vatio

n &

Exp

ense

10

01

00

00

00

00

0$3

0,00

01.

00na

na$3

0,00

0E

vent

s: F

ood

& B

ever

ages

10

01

00

00

00

00

0$2

0,00

01.

00na

na$2

0,00

0In

tern

et:

Eve

nt W

ebsi

te1

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

al$1

0,00

01.

00na

na$1

0,00

0P

erso

nnel

: S

peak

ers

100

010

00

00

00

00

0$1

251.

0010

40$5

0,00

0P

erso

nnel

: E

vent

Man

ager

s10

00

100

00

00

00

00

$35

1.00

1080

$28,

000

Per

sonn

el:

Gro

und

Logi

stic

s40

00

400

00

00

00

00

$20

1.00

4080

$64,

000

Per

sonn

el:

Cre

ativ

e Te

am2

22

20

00

00

00

02

$25

1.00

216

3$8

,150

Gra

nd T

otal

, Voi

ce In

Hea

lthca

re Is

sues

$279

,050

& In

fluen

ce P

olic

y M

aker

s

Eva

luat

ion:

75%

Eve

nt A

ttend

ance

, Dig

ital S

wip

e C

ard

Sys

tem

coun

t$2

0,00

01.

00na

na$2

0,00

0E

valu

atio

n: Q

uant

ity o

f Pre

ss M

entio

ns50

$2,5

00-

1na

$2,5

00E

valu

atio

n: 1

,000

,000

in U

niqu

e W

ebsi

te V

isito

rs1,

000,

000

$2,5

001.

001

na$2

,500

Gra

nd T

otal

, Eva

luat

ion

of$2

5,00

0Vo

ice

in H

ealth

care

Issu

es &

Influ

ence

Pol

icy

Mak

ers

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

Pag

e 46

3

App

endi

x L:

Pro

pose

d G

SK

PR

Pla

n B

udge

t & C

alen

dar (

cont

.)

Key

Pub

lic:

Gla

xoSm

ithK

line

Boa

rd o

f Dire

ctor

s, In

vest

ors

&

Shar

ehol

ders

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

BU

DG

ET

Stra

tegy

:C

orpo

rate

Tra

nspa

renc

y &

Acc

essi

bilit

yPe

r Uni

t Cos

t#

Run

s/Ite

ms

# Pe

ople

# H

ours

/Mon

th/P

erso

nTo

tal E

xpen

se

Tact

ics

Qnt

yA

dver

tise:

Int

erne

t GS

K E

xecu

tive

Cha

t Ses

sion

s th

roug

h D

irect

Mai

lings

121

11

11

11

11

11

1$1

12.0

075

0,00

0na

$9,0

00,0

00A

dver

tise:

Ann

ual M

ay S

tock

hold

ers

Mee

ting,

New

spap

er W

SJ

(1/2

Pag

e)3

01

11

00

00

00

00

$10,

000

2.00

nana

$20,

000

Eve

nts:

Hos

t Ann

ual M

ay S

tock

hold

ers

Mee

ting

& R

eser

ve V

enue

10

00

01

00

00

00

0$2

0,00

01.

0050

0-10

00na

$20,

000

Eve

nts:

Bev

erag

es &

Lig

ht H

or D

evou

rs fo

r Ann

ual S

hare

hold

er M

eetin

g1

00

00

10

00

00

00

$10,

000

1.00

500-

1000

na$1

0,00

0H

ost:

Inte

rnet

Cha

t Ses

sion

s w

ith C

orpo

rate

Exe

cutiv

es12

11

11

11

11

11

11

$125

12.0

01

2$3

,000

Hos

t: Li

ve &

Inte

ract

ive

Vid

eo C

onfe

renc

e of

Ann

ual S

hare

hold

ers

Mee

ting

10

00

01

00

00

00

0$1

5,00

01.

00un

limite

dna

$15,

000

Mai

lings

: M

ail n

otic

e/in

vita

tion

of A

nnua

l Sto

ckho

lder

s M

eetin

g3

01

11

00

00

00

00

$13.

0075

0,00

0na

$2,2

50,0

00P

ress

Rel

ease

: A

nnua

l Sha

re H

olde

rs M

eetin

g A

nnou

ncem

ent

51

11

11

00

00

00

0$7

505.

00ci

rcul

atio

nna

$3,7

50P

ublis

h &

Dis

tribu

te:

Ann

ual R

epor

t75

0,00

00

00

750,

000

00

00

00

00

$51.

0075

0,00

0na

$3,7

50,0

00P

ublis

h: A

ll C

orpo

rate

Gift

s &

Don

atio

ns(T

o &

Fro

m G

SK

), W

ebsi

te1

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

al$2

5pe

rpet

ual

198

0$2

4,50

0P

ublis

h &

Dis

tribu

te:

Bal

lots

& P

roxi

es75

0,00

00

00

10

00

00

00

0$1

-75

0,00

0na

$750

,000

Per

sonn

el:

Exe

cutiv

e C

hat S

poke

sper

son

121

11

11

11

11

11

1co

st a

ccou

nted

for i

n lin

e ite

m a

bove

Per

sonn

el:

Eve

nt M

anag

er, A

nnua

l Sha

reho

lder

Mee

ting

20

00

02

00

00

00

0$3

51.

002

24$1

,680

Per

sonn

el:

Gro

und

Logi

stic

s15

00

00

150

00

00

00

$20

1.00

1524

$7,2

00P

erso

nnel

: C

reat

ive

Team

22

22

22

00

00

00

0$2

5fu

ll tim

e2

1960

$98,

000

Gra

nd T

otal

, Cor

pora

te T

rans

pare

ncy

& A

cces

sibi

lity

$15,

953,

130

Eva

luat

ion:

Eve

nt A

ttend

ance

, Dig

ital S

wip

e C

ard

Sys

tem

coun

t$2

0,00

01.

00na

na$2

0,00

0E

valu

atio

n: Q

uant

ity o

f Pre

ss M

entio

ns50

$2,5

00-

1na

$2,5

00E

valu

atio

n: Q

uant

ity o

f Sha

reho

lder

Vid

eo C

onfe

renc

e A

ttend

ees

250

$2,5

001.

001

na$2

,500

Eva

luat

ion:

Qua

ntity

of O

nlin

e E

xecu

tive

Cha

t Par

ticip

ants

50$2

,500

1.00

1na

$2,5

00G

rand

Tot

al, E

valu

atio

n of

$27,

500

Cor

pora

te T

rans

pare

ncy

& A

cces

sibi

lity

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

Pag

e 46

4

App

endi

x L:

Pro

pose

d G

SK

PR

Pla

n B

udge

t & C

alen

dar (

cont

.)

Key

Pub

lic:

Non

-Gov

ernm

enta

l Org

aniz

atio

ns (N

GO

's) &

Pat

ient

Gro

ups

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

BU

DG

ET

Stra

tegy

:C

omm

unity

and

Hea

lthca

re a

ctiv

ism

and

sup

port

initi

ativ

es o

f N

GO

s an

d P

atie

nt G

roup

s th

roug

h m

onet

ary

cont

ribut

ions

and

vo

lunt

eer e

fforts

.Pe

r Uni

t Cos

t#

Run

s/Ite

ms

# Pe

ople

# H

ours

/Mon

th/P

erso

nTo

tal E

xpen

se

Tact

ics

Qnt

yA

dver

tise:

Pro

mot

e C

once

rt th

roug

h In

tern

et V

iral M

arke

ting

perp

etua

lP

erpe

tual

Per

petu

alA

dver

tise:

Pro

mot

e C

once

rt th

roug

h In

tern

et S

ocia

l Med

ia3

01

11

0E

vent

s: H

ost O

utdo

or F

und-

rais

ing

Con

cert

prom

otin

g H

ealth

Car

e R

efor

m1

00

00

1

Eve

nt:

Sta

ging

, Lig

htin

g, A

V a

nd B

arric

ade

Equ

ipm

ent

dona

tions

00

00

1G

roun

ds:

Por

ta-J

ohns

, Ven

ding

Set

up, P

arki

ng S

etup

and

Bre

akdo

wn

vol.

& d

on.

00

00

1Ti

cket

ing:

E-T

icke

t thr

ough

a v

olun

teer

Tic

ketin

g A

genc

yvo

l. &

don

.P

erpe

tual

Per

petu

alH

ost:

Live

& In

tera

ctiv

e V

ideo

Con

fere

nce

of A

nnua

l Sha

reho

lder

s M

eetin

g1

00

00

1

Logi

stic

s: E

MS

, Tra

ffic

Pla

nnin

g, a

nd E

ntra

nce

Saf

ety

Che

cks

50P

erpe

tual

Per

petu

al

Pre

ss R

elea

se:

Ann

ounc

emen

t of E

vent

1,20

030

030

030

030

01

Per

sonn

el:

Per

form

ing

Arti

sts

100

00

010

010

0P

erso

nnel

: E

xecu

tive

Spo

kesp

erso

ns/E

vent

Hos

ts-M

Cs

25P

erpe

tual

Per

petu

alP

erso

nnel

: E

vent

Man

ager

, Con

cert

Logi

stic

s50

Per

petu

alP

erpe

tual

Per

sonn

el:

Gro

und

Logi

stic

s30

0P

erpe

tual

Per

petu

alP

erso

nnel

: G

SK

Cre

ativ

e Te

am25

Per

petu

alP

erpe

tual

Gra

nd T

otal

, Hea

lthca

re R

efor

m R

ock

Con

cert

100%

Vol

unte

er P

roje

ct

Eva

luat

ion:

Mea

sure

mon

etar

y co

ntrib

utio

ns10

,000

,000

Eva

luat

ion:

Eve

nt A

ttend

ance

, Ent

ranc

e C

ount

er &

Met

al D

etec

tor

750,

000

Eva

luat

ion:

Qua

ntity

of P

ress

Men

tions

1,00

0E

valu

atio

n: S

ocia

l Med

ia M

entio

ns5,

000,

000

Eva

luat

ion:

Qua

ntity

of O

nlin

e E

xecu

tive

Cha

t Par

ticip

ants

50G

rand

Tot

al E

valu

atio

n of

100%

Vol

unte

er P

roje

ctH

ealth

care

Ref

orm

Roc

k C

once

rt

G

laxo

Sm

ithK

line

Pub

lic R

elat

ions

Pla

n &

Cas

e S

tudy

Pag

e 46

5

App

endi

x L:

Pro

pose

d G

SK

PR

Pla

n B

udge

t & C

alen

dar (

cont

.)

Key

Pub

lic:

Non

-Gov

ernm

enta

l Org

aniz

atio

ns (N

GO

's) &

Pat

ient

Gro

ups

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

BU

DG

ET

Stra

tegy

:A

ctiv

ism

and

Sup

port

of N

GO

s &

Pat

ient

Gro

ups

Per U

nit C

ost

# R

uns/

Item

s#

Peop

le#

Hou

rs/M

onth

/Per

son

Tota

l Exp

ense

Tact

ics

Qnt

yFi

nanc

ial:

Mon

etar

ily S

uppo

rt N

GO

s th

roug

h M

embe

rshi

ps &

Gra

nts

120

1010

1010

1010

1010

1010

1010

$50,

000

120.

00na

na$6

,000

,000

Fina

ncia

l: U

nite

d W

ay C

orpo

rate

Mat

chin

g*1

Per

petu

alP

erpe

tual

Per

petu

alP

erpe

tual

Per

petu

al$1

,400

,000

perp

etua

lvo

lunt

eers

as

will

ing

$1,4

00,0

00Le

ader

ship

: H

ost 1

2 fu

ndra

isin

g E

vent

s/te

leth

ons/

enco

urag

e do

natio

ns a

nd p

ledg

es11

11

11

11

11

11

10

$250

,000

11.0

0vo

lunt

eers

as

need

edas

nee

ded

$2,7

50,0

00

Lead

ersh

ip:

Hos

t Pan

el D

iscu

ssio

ns, P

rovi

de V

enue

& E

vent

M

gmt S

ervi

ces

121

11

11

11

11

11

1$2

0,00

012

.00

Sele

ct P

anel

as

need

ed8

$240

,000

Lead

ersh

ip: F

ound

/Dev

elop

Fol

low

-on

Pat

ient

Sup

port

Gro

up

Ser

vice

s P

ost I

llnes

ses

120

1010

1010

1010

1010

1010

101

$10,

000

120.

00A

ppoi

nt L

eade

rs

as n

eede

d8

$1,2

00,0

00

Per

sonn

el:

Par

ticip

ate

thro

ugh

Vol

unte

eris

m50

042

4242

4242

4242

4241

4141

41vo

lunt

eer w

ork

perp

etua

las

nee

ded

as n

eede

d-

Pro

mot

iona

l Ite

ms:

Dev

elop

logo

and

man

ufac

ture

/pur

chas

e an

em

belli

shm

ent t

hat m

ay b

e w

orn

to d

ispl

ay s

uppo

rt fo

r a g

iven

ca

use.

Ex.

Lan

ce A

rmst

rong

, "Li

ve S

trong

" arm

bra

cele

ts50

0,00

041

,667

41,6

6741

,667

41,6

6741

,667

41,6

6741

,667

41,6

6741

,666

41,6

6641

,666

4166

6$0

500,

000.

00na

na$1

25,0

00

Gra

nd T

otal

, Act

ivis

m &

$1

1,71

5,00

0Su

ppor

t of N

GO

's &

Pat

ient

Gro

ups

Eva

luat

ion:

Vol

unte

er c

ount

(Mea

sure

qua

ntity

of v

olun

teer

s)10

% G

SK

em

p.vo

lunt

eer w

ork

perp

etua

las

will

ing

as w

illin

gna

Eva

luat

ion:

Mea

sure

mon

etar

y co

ntrib

utio

nsco

unt

as p

rovi

ded

perp

etua

las

will

ing

nana

Eva

luat

ion:

Pre

ss M

entio

ns50

2,50

0.00

$

perp

etua

l1

82,

500.

00$

Eva

luat

ion:

Cas

e S

tudi

es/"M

y S

tory

" Tes

timon

ials

50$3

0pe

rpet

ual

120

600.

00$

Gra

nd T

otal

Eva

luat

ion

of3,

100.

00$

Act

ivis

m &

Sup

port

of N

GO

's &

Pat

ient

Gro

ups










Documents

GSK Case Study & PR Plan