Glaxosmithkline

Case Synopsis

GlaxoSmithKline (GSK), a major AIDS drug provider worldwide was suffering a crisis in its South African market segment. Major issues that needed addressed were as follows:

1) Protecting Patents under the TRIPS Agreement to recover Research & Development costs of their AIDS drug research

2) Addressing the social aspects of the South African nation after their post-apartheid oppression and the lack of willingness to adapt preventative methods to the HIV/AIDS virus

3) Issues of humanity existed. AIDS victims were waiting for reasonably priced generics while pharmaceutical companies attempted to reserve patent rights and compensate for Research and Development costs associated with producing the drugs. Many South Africans lay dying waiting on these import decisions to be made.

4) Declining profits due to brand name reprimand and reducing costs of antiretroviral drugs.

5) Local South African companies trying to buy out or duplicate the products locally

By the mid 1990’s AIDS was spreading rapidly in the world and with no cure available, governments were seeking the only FDA approved antiretroviral medication to mediate the effects that AIDS has on its victims. With an epidemic on their hands, both government and pharmaceutical companies found that saving the people and retaining patent policies would bring them to a political stall. With millions of suffering AIDS victims unable to afford the expensive treatments, a world-wide movement toward AIDS awareness was needed along with a long-term plan for getting the antiretroviral drugs in the hands of those who so desperately needed it. GSK faced one of the biggest human rights battles in history.

The Social Responsibility vs Profits Debate

The significance of the South African controversy touches on the more fundamental question of to what extent developing countries should be free to take legislative measures to deal with public health crises and to what extent patent protection of...