Presentation by GSK's Developing Countries Operating Unit made at the Euro-Africa Health Investment Conference, March 26 - 27, 2013, London, United Kingdom.
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Paper presented by GSK's Developing Countries Operating Unit
1. Developing Countries Operating Unit
1st Euro-Africa Health Investment Conference: MediPharm, March 26-27,
London
Craig Williams
Director, Vaccines and Disease of the Developing World
2. The DC operating unit
Established in August 2010 - to increase
patient access to GSK medicines and
vaccines while expanding its presence
and helping it build a sustainable
business in developing countries
Tasked with bringing a dedicated GSK
focus to expanding access to medicines
for around 800 million people in the
world’s least developed countries
(LDCs)
3. The Markets
Covers 50 countries, 49 defined by
UN as least developed, over half of
whom survive on less than $1 a day
currently supply medicines to 37 of
the 49 LDCs and employ 650
people across the unit.
4. GSK’s operating model in
Developing Countries
Lower price/higher volume
Volume incentive
Longer-term return on investment
Patented medicines & vaccines capped
at 25% of UK price
20% of profit reinvested in healthcare
infrastructure in country)
The target is a five-fold growth in
volume of medicines & vaccines supplied
to these countries by 2015.
6. Vaccines- GAVI
Vaccines: For over 20 years we have made our entire vaccine portfolio
available for expanded immunisation programmes at preferential prices to
developing countries using a tiered pricing system.
GAVI Pledging Meeting – 13 June 2011
– Initial target : $3.7 billion
– Donors commitment : $4.3 billion
– Resources available for 2011-2015 : $7.6 billion
7. Health Infrastructure -Our commitment to reinvest
20% of profits
GSK partner with AMREF, CARE
International and Save The Children to
strengthen healthcare infrastructure in
LDCs
To increase the numbers of trained
healthcare workers in rural and
marginalised communities
A sustainable model to improve
healthcare infrastructure in developing
countries
Supporting community healthcare
workers increases access to medicines
and ultimately improves health
outcomes
8. Health Infrastructure - One Family Health
Nurse run Franchise clinic network
Currently 80 clinics in Kenya serving
500,000 patients per year
GSK announced expansion for Rwanda
in April to establish 250 health posts over
the next three years
9. Health Infrastructure – Anti counterfeiting Nigeria
Using SMS text technology to guarantee the quality of products
GSK added a scratch off panel on the packs to include a unique code. Patients
would then text in the code (free) to a central number to authenticate the product.
10. Access to Medicines Contributions
R&D
• R&D PPPs
• WIPO Research
• Open lab
• Malaria screen
• HIV
• TB, malaria
• Trust in Science (LATAM &
AFRICA)
New Business Models
• Tiered pricing
• ViiV Healthcare
• DCMA unit
• CME
• Voluntary licensing
• Portfolio
• Branded generics
• Small pack sizes
• EMAP R&D
• Techonolgy transfer
• Brazil JV
• Innovative pricing
• Malaria
• AMC
Health
Systems
• 20% reinvestment
• LF elimination
• African malaria
Partnership
• PHASE
• Positive Action and PAFC
• Humanitarian relief
• De-worming programme
“Instead of making £1 million profit by supplying 100,000 patients, we want to make £1 million profit by supplying one million patients. This should translate into a sustainable health impact.” The unit’s ultimate goal – to be part of the solution, rather than simply sit back and wait for things to change
One family health is a private enterprise which has developed the “CFW” (Child and Family Wellness) franchise system for a local nurse to own and operate a basic medical clinic in rural and slum areas of Africa. CFWfranchisees receive franchisor support to succeed in business and build the CFWbrand: Start-up loans, Initial training , Ongoing coaching, System-wide marketing support, Peer network and recognition, Technology innovationsCFWclinics target the short list of diseases and conditions causing approximately 70% of illness and death in local communities (e.g. malaria, diarrheal disease, respiratory infections). CFWmaintains a secure supply chain of high-quality, affordable essential medicines in places where counterfeit and substandard drugs are rampant.Patients trust CFWfranchisees because they are qualified, accessible, convenient, affordable, and provide quality careCFWfranchisees also distribute preventive messages and health education to local communities and schoolsCurrently 80 clinics in Kenya serving 500,000 patients per yearIn April 2012 announced partnership which brings together One Family Health (OFH) Foundation, GSK, Ecobank and the Rwandan Ministry of Health in a coordinated effort to establish up to 250 health posts across Rwanda over the next three years. With support from the Ministry of Health, this innovative partnership aims to increase access to high quality essential medicines and basic healthcare for around two million people per year in rural and marginalised communities in Rwanda. )
Nigeria Market SMS trial (March – August 2011) In Nigeria we have trialled an SMS service in partnership with the country’s National Agency for Food, Drug, Administration and Control (NAFDAC) using their text number. Ampiclox, one of Nigeria’s highest selling SKU’s is threatened by counterfeit activity. GSK added a scratch of panel on the packs to include a unique code. Patients would then text in the code (free) to a central number to authenticate the product. The SMS Service responds if code is recognised and if there were any issues patients could contact an SMS helpline. Third party SMS service implemented in partnership with the country’s National Agency for Food, Drug, Administration and Control (NAFDAC) using their text numberSingle SKU (Ampiclox), one of Nigeria’s highest selling SKU’s threatened by counterfeit activity - (planned 1.7m Blisters)1. Customer buys labelled product from Vendor- 2. Customer Texts Hidden Code to SMS Service (free) - 3. SMS Service Responds if Code Recognised - 4. If issue contact SMS Help Line If successful it may be extended to other countriesConducted an awareness campaign for consumers and supply chainEnd June 11 statistics - 145,000 texts115,000 unique users10% of sales sent texts90% of texts receive genuine message7.5% of texts receive duplicate PIN message2.5% of texts receive a fake message2,369 calls to the Helpdesk of which 30 have been escalated to GSK1 successful product retrieval