Harvard Case - GSK's Andrew Witty: Addressing Neglected Tropical Diseases and Global Health Issues - The "Pharmaceutical Patent Pool" (A)
"GSK's Andrew Witty: Addressing Neglected Tropical Diseases and Global Health Issues - The "Pharmaceutical Patent Pool" (A)" Harvard business case study is written by Michael Rouse, Chander Sehgal. It deals with the challenges in the field of General Management. The case study is 20 page(s) long and it was first published on : Mar 8, 2011
At Fern Fort University, we recommend that GSK, under the leadership of Andrew Witty, continue to pursue the Pharmaceutical Patent Pool (PPP) initiative as a strategic cornerstone for addressing neglected tropical diseases (NTDs) and global health issues. This recommendation is based on a comprehensive analysis of the case study, considering the ethical, social, and business implications of the initiative.
2. Background
This case study focuses on GSK's response to the global challenge of NTDs. Andrew Witty, then CEO of GSK, recognized the significant unmet need for affordable treatments for these diseases, primarily affecting impoverished populations in developing countries. The case study highlights the development of the PPP, a unique initiative aimed at facilitating access to essential medicines by licensing patents for NTD treatments to generic manufacturers.
The main protagonists of the case study are:
- Andrew Witty: GSK CEO, championing the PPP initiative and driving its implementation.
- The World Health Organization (WHO): A key stakeholder, advocating for improved access to NTD treatments.
- Generic drug manufacturers: Potential licensees of patents, crucial for increasing production and affordability of NTD treatments.
- Patients: The ultimate beneficiaries of the PPP, gaining access to affordable and effective treatments.
3. Analysis of the Case Study
The case study presents a complex scenario with various considerations:
Strategic Framework: The PPP can be analyzed through the lens of Porter's Five Forces framework:
- Threat of New Entrants: High, as the barrier to entry for generic manufacturers is relatively low.
- Bargaining Power of Buyers: Low, as patients are often dependent on limited access to healthcare.
- Bargaining Power of Suppliers: High, as GSK holds the patents for essential NTD treatments.
- Threat of Substitutes: Low, as there are limited substitutes for effective NTD treatments.
- Competitive Rivalry: Moderate, as other pharmaceutical companies are also developing NTD treatments.
Corporate Social Responsibility (CSR): GSK's initiative aligns with its CSR principles, demonstrating a commitment to improving global health outcomes.
Innovation: The PPP encourages innovation by incentivizing generic manufacturers to develop and produce affordable NTD treatments.
Emerging Markets: The initiative targets emerging markets, providing access to essential medicines for underserved populations.
Globalization: The PPP fosters collaboration and knowledge sharing across borders, promoting global health equity.
Ethical Considerations: The PPP raises ethical concerns regarding intellectual property rights and the balance between profit and public health.
4. Recommendations
GSK should:
- Continue to expand the PPP: Include a broader range of NTD treatments and engage more generic manufacturers.
- Strengthen partnerships with stakeholders: Collaborate with WHO, governments, NGOs, and other pharmaceutical companies to ensure effective implementation and impact.
- Develop a transparent and equitable licensing framework: Ensure fair royalty rates and access to technology for generic manufacturers.
- Invest in research and development: Support the development of new and improved NTD treatments, including vaccines and diagnostics.
- Promote public awareness and advocacy: Educate the public about NTDs and the importance of access to affordable treatments.
5. Basis of Recommendations
- Core competencies and consistency with mission: The PPP aligns with GSK's core competencies in drug development and its mission to improve global health.
- External customers and internal clients: The PPP benefits patients, healthcare providers, and generic manufacturers, while also strengthening GSK's reputation.
- Competitors: The PPP provides a competitive advantage by demonstrating GSK's commitment to social responsibility and innovation.
- Attractiveness: The PPP has the potential to significantly impact global health outcomes, contributing to a positive societal impact.
Assumptions: The success of the PPP depends on the willingness of generic manufacturers to participate, the availability of funding for research and development, and the commitment of governments and NGOs to support access to affordable treatments.
6. Conclusion
GSK's Pharmaceutical Patent Pool initiative is a groundbreaking approach to addressing the challenge of NTDs. By leveraging its intellectual property and partnering with key stakeholders, GSK can significantly improve access to essential medicines for underserved populations. The PPP is a testament to the power of corporate social responsibility and innovation to drive positive change in the world.
7. Discussion
Alternatives:
- Exclusive licensing: GSK could have chosen to exclusively license its patents to a single manufacturer, potentially resulting in higher prices and limited access.
- Open access: GSK could have opted for open access to its patents, potentially leading to a flood of generic manufacturers and challenges in quality control.
Risks:
- Limited participation by generic manufacturers: Concerns about profitability and regulatory hurdles may deter some manufacturers.
- Intellectual property infringement: The PPP could face challenges in enforcing intellectual property rights.
- Lack of government support: Limited government funding for NTD programs could hinder access to treatments.
Key Assumptions:
- Generic manufacturers will be incentivized to participate in the PPP.
- Governments and NGOs will support the initiative.
- The PPP will be effective in reducing the cost of NTD treatments.
8. Next Steps
- Develop a comprehensive implementation plan: Outline specific timelines, milestones, and resource allocation for the PPP.
- Establish a dedicated team: Assemble a team of experts to manage the PPP and its operations.
- Monitor and evaluate progress: Track key performance indicators (KPIs) to assess the impact of the PPP on access to treatments and health outcomes.
- Communicate transparently: Share information about the PPP with stakeholders and the public.
By taking these steps, GSK can ensure the success of the PPP and its contribution to improving global health equity.
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Case Description
In February 2009, Andrew Witty reflected on his vision for big pharma as a catalyst for change which focused on two key issues: 1) promoting innovation for the products that treat or prevent neglected tropical diseases and 2) improving access to medicines in the world's poorest countries. He had announced the creation of the "Pharmaceutical Patent Pool" and wondered if it was the right strategy to deliver on the two key issues.
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