HomeResearch & Knowledgeback to HomeStrategyback to Research & KnowledgeGlaxoSmithKline and AIDS drugs in South Africa (A): The fight for lives and profitsback to Strategy

Case Study

GlaxoSmithKline and AIDS drugs in South Africa (A): The fight for lives and profits

By Michael Yaziji and Anna Lindblom

10 pages

February 2005

Order this case study

Reference: IMD-3-1496

The case describes the interactions among pharmaceutical companies, NGOs, and governments in the context of the AIDS epidemic in South Africa. Oxfam singled out GSK as the target for its new campaign, “Cut the Cost.” The goal was to hit where it would hurt the most–GSK’s share price. At the same time other NGOs also went after GSK. For GSK the situation in South Africa was extremely delicate. The ultimate issues were patent and price protection globally. The pharmaceutical companies were afraid that cheap generic drugs could flood the West, undermining the entire pricing structure and their ability to fund new research. Defending the patents and prices seemed essential. Yet, fighting the NGOs could bring negative publicity and, ultimately, be self-defeating. Meanwhile, million of people were dying of AIDS in South Africa.

Keywords

Non-market Competition, Ethics, Pharmaceuticals, AIDS

Settings

Africa, South Africa
GlaxoSmithKline, Healthcare, Pharmaceuticals
2001-2004

Type

Published Sources

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This case study is part of a series

GlaxoSmithKline and AIDS drugs in South Africa (A): The fight for lives and profits
GlaxoSmithKline and AIDS drugs in South Africa (B): The settlement
GlaxoSmithKline and AIDS drugs in South Africa (C): The fight goes on
GlaxoSmithKline and AIDS drugs in South Africa (D): US developments

This case study is part of a series

GlaxoSmithKline and AIDS drugs in South Africa (A): The fight for lives and profits
GlaxoSmithKline and AIDS drugs in South Africa (B): The settlement
GlaxoSmithKline and AIDS drugs in South Africa (C): The fight goes on
GlaxoSmithKline and AIDS drugs in South Africa (D): US developments

Keep reading

Article

Honda and Nissan need more than a $58bn merger to compete with Chinese EVs

Honda and Nissan's $58bn merger aims to compete with China's EV dominance, but risks include cultural clashes, overlapping markets, and uncertain innovation outcomes.

Business Transformation China Innovation Mergers and Acquisitions Strategy

By Patrick Reinmoeller

in I by IMD

Article

Trump Policy - Navigating The Fog - A Near Term Guide

Navigate Trump's policy shifts with a clear framework to assess business risks, plan contingencies, and stay ahead in uncertain times. Prepare for what’s next.

Strategy

By David Bach, Richard Baldwin and Simon J. Evenett

in I by IMD

Article

Strategies for negotiating cross-sector alliances

Given the world’s many challenges, the ability to forge effective alliances across business, government, the non-profit sector, and academia has become essential to building durable solutions. Here are eight steps to guide you through the process.

Strategy

By Michael D. Watkins

in I by IMD Brain Circuits

17 January 2025

Article

Navigating Geopolitical Rivalry - Geopolitical Radar

Without a robust geopolitical radar, successfully navigating geopolitics is more luck than judgment.

What tramp shipping can teach strategic management

Here are three strategic lessons from the tramp shipping industry.

Annual prognoses and corporate strategy - 2025 Trends

Why the market for new year predictions is broken and how executives can better use forecasts to discern the implications for their companies.

Future Readiness Strategy

By Simon J. Evenett

in I by IMD

Article

Why leaders don’t engage in strategic thinking

Strategic thinking is key to success. Overcome common excuses and develop the skills to navigate change, drive innovation, and prepare for future business challenges.

Leadership Strategy

By Michael D. Watkins

in I by IMD

Article

How luxury brands can build strategic resilience in 2025

Officially, brands executives continue to display confidence that big luxury will shrug off the 2024 downturn as a cyclical one. They see it as the product of the combined collapse of real estate prices in China and a return to normalcy after the ...

Luxury Strategy Branding Innovation

By Stéphane J. G. Girod

in Forbes.com

3 January 2025

Article

Here’s what we predicted for 2024… how did we do?

Did our predictions for 2024 come true, a turbulent election year, bitcoin and CBDC, COP29 and electric cars, China, EU integration and Euro football

Finance Future Readiness Geopolitics Strategy Sustainability

By Robert Hooijberg, Arturo Bris, David Bach, José Parra Moyano, Michael R. Wade, Julia Binder, Howard H. Yu, Simon J. Evenett, Alyson Meister, Salvatore Cantale and Stefan Michel

in I by IMD

Book Chapter

The strategic imperative

In a world where change is the only constant, the strategic imperative for sustainability is not just a theoretical construct – it’s a call to action. This section of the book delves into the core strategies that will enable businesses to thrive i...

Business Transformation Innovation Strategy

By Julia Katharina Binder and Knut Bjarne Haanaes

in Binder, Julia Katharina (Ed.); Haanaes, Knut Bjarne (Ed.) / Leading the sustainable business transformation: A playbook from IMD, pp. 59-62 / Hoboken: Wiley, 2025

Honda and Nissan need more than a $58bn merger to compete with Chinese EVs

By Patrick Reinmoeller
in I by IMD

Summary

Honda and Nissan's $58bn merger aims to compete with China's EV dominance, but risks include cultural clashes, overlapping markets, and uncertain innovation outcomes.

Contact

Research Information & Knowledge Hub for additional information on IMD publications