GSK: Long term commitment to Filipinos

MANILA, Philippines - Long before lawmakers and consumers pressed drug companies to cut the prices of medicines, United Kingdom-based GlaxoSmithKline (GSK) already slashed the prices of its products in March, GSK Philippines’ newly-appointed president and managing director Roberto Taboada disclosed in an interview at GSK’s office in Makati.

Taboada, a Peruvian who finds the Philippines a very comfortable place, is pleased that GSK is able to help Filipinos especially during these difficult times.

GSK implemented the price cuts last March 1, slashing by 30 to 50 percent the prices of its major medicines in a bid to make quality medicines affordable to more Filipinos.

The landmark announcement marks the first time the company is embarking on a wide-ranging reduction not only in the country but in the rest of the countries worldwide where GSK sells its medicines.

Taboada stressed that the price reduction is not a limited promotion but a long-term commitment to Filipinos. “Medicines should be more affordable,” he said.

The GSK chief said it’s the company’s way of being “part of the solution.” “It’s the right thing to do,” Taboada noted.

At the same time, he admits that the reduction is part of GSK’s new business model aimed at attracting a bigger share of the market.

Taboada said that GSK global chief executive officer Andrew Witty earlier set out an ambitious new agenda to tackle the challenges of improving global health. This includes drastically reducing prices in the 50 Least Developed Countries and being flexible in pricing for middle-income countries such as the Philippines to better respond to the needs of the patients.

“In two to three years, we’re hoping that our volumes will increase. We also expect that in the long-term, it will be a more sustainable business model,” he said.

However, Taboada said that for this year that the company implemented its price cut, GSK expects zero growth in terms of sales.

GSK implemented price reductions on medicines for acute diseases such as pneumonia and other bacterial infections, ulcer, bronchitis, hospital acquired infection, nausea and vomiting among others. Its cervical cancer vaccine continues to be available at a more affordable price after it was reduced by as much as 60 percent in November 2008.

Medicines for hypertension, hepatitis, epilepsy, asthma and bipolar disorder were also covered by the price cuts.

“This is our biggest commitment to Filipino patients yet. Our previous experience with ValueHealth makes us confident that we will be able to sustain our efforts to make our medicines affordable to more, with the continued support of patients and doctors,” he said.

Aside from implementing programs to improve accessibility of its medicines, GSK Philippines also entered into partnerships with healthcare organizations.

For instance, the company entered into a partnership with the Philippine Health Insurance Corporation. (Philhealth) for healthcare insurance coverage for indigent families.

Taboada said the company is hoping to continue with these efforts through the years to come.

“It’s a new business model and we know that it’s the right thing to do,” he said.