Preview

glk retaliation

Satisfactory Essays
Open Document
Open Document
381 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
glk retaliation
GLAXOSMITHKLINE’S RETALIATION AGAINST CROSS-BORDER SALES OF PRESCRIPTION DRUGS
GlaxoSmithKline plc(GSK), a prescription drug and personal hygiene consumer products company based in Britain, found itself coping with a new challenge during this period as Americans, especially senior citizens , developed various strategy to deal with the rising drug costs. The flow of drugs from Canadian pharmacies to American consumers captured the attention of GSK and their concern grew as the practice spread.
Seeking relief from escalating healthcare costs, many Americans, especially senior citizens, required alternate channels for acquiring the prescription medicines upon which they increasingly relied. Publicizing the increasing costs and promoting a political agenda, u.s. home at a considerable discount to what congressmen from states along the Canadian border began to host bus trips for senior citizens across the border in order to procure prescription drugs at costs as much as 80% lower than those available in the united states. In relatively simple process, seniors and others could take a prescription written by an American physician, send it to a Canadian pharmacy, and within days receive their drugs at that product cost in the united states. Manitoba pharmacies alone claimed $250 million in sales from approximately 400,000 u.s. customers during 2002.’
GlaxoSmithKline was beginning to feel the economic effects of American consumers acquiring prescription drugs from Canada at lower cost, circumventing the traditional prescription drug market. Therefore, responding to the growing popularity of cheaper Canadian drugs among American consumers, GSK defended premium pricing in America. Prescription drugs are cheaper in Canada than the u.s. A dodge caravan costs $31,000 in the u. S. But just $21,000 in u. S. Dollars in Canada. Also in January 2003 in an action GSK closely compared to that of other consumer good manufactures they threatened to stop supplying drug wholesalers

You May Also Find These Documents Helpful

  • Better Essays

    GlaxoSmithKline is a U.K.-based pharmaceutical powerhouse formed by a merger in the late 90’s, with the most important merger being that between Glaxo Wellcome and Smith Kline Beecham. The merger created a pharmaceutical industry giant with operations in over 100 countries and annual sales over $25 billion. In the U.S. alone, prescription drugs account for 10% of all medical costs with sales tripling over the past decade and price increases of 150 percent.…

    • 958 Words
    • 4 Pages
    Better Essays
  • Good Essays

    The contribution made by the industry towards the GDP of the country is $ 1.2 trillion, which is 8.5% of the GDP (PWC, 2011). Increase in the wholesale prices of drugs during global financial crises has increased the expenditure to $ 10 billion, which increased to $ 300 billion in the year 2009. It has also increased the inflation rate in the country. In addition to this, it also has a negative impact on the Consumer Price Index, which fell to 1.3% in the year 2009 (Wilson, 2009). It is estimated that the retail drug industry would reach US$ 1420 billion in the year 2017 and there would be a compounded annual growth rate of 3.6% in the next 5 years (Reuters, 2012).…

    • 1293 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Pros And Cons Of Obamacare

    • 1325 Words
    • 6 Pages

    companies are charging more in the United States for medication than they do in other…

    • 1325 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Assignment1 Copy

    • 4284 Words
    • 13 Pages

    Gooi, M., & Bell, C. (2008). Differences in generic drug prices between the US and Canada. Applied Health Economics And Health Policy, 6(1), 19-26.…

    • 4284 Words
    • 13 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Chapter 11

    • 448 Words
    • 2 Pages

    This chapter discusses the political and economic aspects that have taken both Canada and the US in different paths which is ultimately shaped by the organization and delivery of care with its recent restructuring efforts. The US health care system is a system of private health insurance where most of the population gets benefits through employment or other benefit plans such as those for veterans. There is public health insurance for those on social security called Medicare and those that require social assistance called Medicaid. But, 45 million people are still uninsured and millions are underinsured. Unlike the US, Canada has a universal system of public health insurance where contracts with private non-profit health care institutions such as hospitals and health practitioners deliver care. The national health insurance represents a sense of clarity between “free market” liberalism and the “planned economy” socialism. Public financing is considered the optimal form of health care financing due to the fact that insurance is affordable to all citizens no matter how ill, effective cost control over health care services, and there’s universal coverage. With such a system, those that are healthy that do not need many treatments support those that require health care service which ultimately offer good cost control and good equity. Canada and the US have different perspectives in access to their pharmaceuticals. Canada has a public health insurance where people over the age of 65 and those on social assistance are covered. Unlike Quebec that has a drug benefit program for everyone, Ontario has created programs to those that have a large amount of drug costs and the rest of the population has access through private insurance through employment. This causes issues with those that are in low paying or have part-time jobs. Pharmaceuticals here in Canada are regulated by the Patented Medicines…

    • 448 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Cited: Armstrong, Pat, and Hugh Armstrong. Universal Health Care: What the United States Can Learn from the Canadian Experience. New York: The New Press, 1998. Print.…

    • 2083 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Health care has become very expensive to the older population and the younger population. The spending cost for senior citizens has sky rocketed. With the changes made to Medicare and Medicaid older population cannot keep up with the cost and extras expenses that are needed to see the doctors and pay for the medications. Some of the physicians and hospitals are not accepting Medicare or Medicaid recipients because the plans that most individuals have doesn’t coverage and or the physician doesn’t only get a certain amount from the insurances carriers that doesn’t cover the cost the providers have given the Medicare/Medicaid patients. Some physicians are helping the Medicare/Medicaid patients by supplying extra samples of medications to help with not being able to affordable the cost of medicine. With the aging population, new and improve technology, the out of pocket expenses along with the having to pay for the medication and having a copay it is impossible…

    • 1540 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Canadian Health Care System

    • 2959 Words
    • 12 Pages

    Spend Nearly Four Times as Much Money Interacting with Health Plans and Payers Than Do Their Canadian Counterparts.” Health Affairs. 1443-1450.…

    • 2959 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Healthcare has always been an interesting and popular topic in Canada & America. Here in Canada, we have universal healthcare, and it’s been that way since 1948. It is publically funded by the government and we pay for our healthcare through taxes and anyone who is a citizen is insured. In a nut shell, we experience the fortunate benefit of health insurance here in Canada, thankfully. If any of us get sick, break a limb or contract a disease, we’re covered and can seek immediate help. In America, the case is different. About 50 million Americans have no health insurance.1 The lack of health insurance in…

    • 1462 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Health Care Reform Project

    • 1042 Words
    • 3 Pages

    Openshaw, M. (2005). The Economics of Prescription Drug Price, Government Intervention and the Importation of Drugs from Canada. Nursing Economic, 23(6), 307-311.…

    • 1042 Words
    • 3 Pages
    Better Essays
  • Good Essays

    A single government run pharmacy could revolutionize the way Americans receive all types of healthcare. If a government run pharmacy was put into place American’s would have little to no out of pocket cost for their prescription medication. The outrageous out of pocket cost would be eliminated because the government would just pay for everyone’s medications. A similar government run pharmacy system is currently set up in England. The system is called the National Healthcare System or NHS. All British citizens are enrolled in the National Heathcare System and only have to pay about $2 a week to receive all of their necessary prescription medication (“The NHS in England” 1). The same or a similar system could easily be put into place in America and could save the American people large amounts of…

    • 1294 Words
    • 6 Pages
    Good Essays
  • Good Essays

    The Canadian healthcare system is based on the publicly funded “Medicare” programme since the 60s. Canada’s healthcare system represents a national health insurance model which uses private sector providers while payments come from a government insurance programme that every citizen is obliged to pay. In 2013, the 35.2 million people living in Canada have spent in health $4.351 per capita in total (public, private and out of pocket) which represents 10,2% of GDP, nearly to the average health spending of OECD countries (OECD, 2016). It is important to mention that Canada is divided in large geographic regions, 10 provinces and 3 territories. Approximately, 75% of the population of Canada, lives within 100 miles of the U.S.A borders and over half of the population lives in Ontario and Quebec. Nonetheless,…

    • 364 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Pharmaceutical Advertising

    • 2279 Words
    • 10 Pages

    Living in a culture that is so heavily influenced by media and advertising, it is almost impossible to open a magazine, watch television, or even walk down the street without seeing an advertisement for prescription drugs. Since its start in the early 19th century, the pharmaceutical industry has expanded to become one of the fastest growing, most influential and successful industries today. Over the years, many factors such as innovative technologies, new regulations, and company mergers and takeovers, have contributed to the rapid growth of this industry. However, on top of these factors lies the most powerful and persuasive reason why our society has become a drug-obsessive, pill-popping culture: the excessive, overwhelming marketing of prescription drugs to the public. From producing countless misleading prescription drug commercials to forming alliances with doctors by giving them free gifts, pharmaceutical companies have deceitfully found many ways to reach the public and increase their profits.…

    • 2279 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Medical Fraud

    • 2140 Words
    • 9 Pages

    The problem this topic addresses is the reality that major pharmaceutical companies are committing fraud to fool consumers. Recognizing that what they are participating in is fraud shed's a light on what we should be questioning. It also includes understanding the role of the FDA and how effective their laws are. Witnessing crack downs on major companies on behalf of the consumer, and the penalties administered, makes us believe that our government, in some ways, is looking out for our best interest.…

    • 2140 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Dressel, Davis, Shoen, Shea, and Haran (2008) all argue that Canada has shown statistically that their health care system is better. According to Dressel, America spends more money on health care than Canada, but have higher infant mortality rates and an average lower life expectancy (p. 573). Canada and America used to be equal, but since Canada changed their system the numbers have changed, and they have pushed ahead. Davis, Shoen, Shea, and Haran explain that it is becoming harder for Americans to access quality care because of insurance rates (p. 3).…

    • 793 Words
    • 4 Pages
    Good Essays

Related Topics