Analysis and interpretations of Glaxo Smithkline Beechem' financial statements - Essay Example

Download file to see previous pages ed his laxative pills business in England in 1842 Following its successful business, Beecham started the world’s first factory for manufacture of medicines at St Helens in England in 1859. In 1885, Thomas Beecham’s company became the first to get electricity in the area St Helens two years after the company set up its headquarters at Silver Street and Water Street in 1885. Beecham’s production of laxative pills reached 1 million per day by 1913. In 1945, it became Beecham Group Ltd with the merger of Beecham Pills Ltd and Beecham’s Estates Ltd. In 1972, Beecham’s scientists introduced its research product Amoxicillin, a widely used antibiotic till today in 1972 (GlaxoSmithkline). 4 Smithkline Allen and Handburys Ltd’s predecessor Plough Court Pharmacy was started by Silvanus Beevan in London in 1715. John K Smith started his first drugs store in Philadelphia in 1830 and his brother George joined him in 1841 to form John K Smith & Co which was later joined by Mahlon Kline as a bookkeeper in 1865 to become Smith and Shoemaker. He took additional responsibilities as a salesman and added many large businesses as its customers which resulted in the formation of Smith Kline and Company in 1875 in recognition of Kiline’s contribution to the business. The new company acquired French firm Richards and Company in 1891 garnering in a wide range of consumer brands. In 1929, it was renamed as Smith Kline and French Laboratories to mainly focus on research. In 1950s, the company introduced anti-psychotic drug chlorpromazine which revolutionized treatment of mental illness and became the first generation central nervous system drug. In 1952, the company brought out the time-released drug of dextoamphetamine sulfate (Dexedrine) and used it in Spansule which was novel...
This research talks about Glaxo Welcome and Smithkline Beechem, the four companies whose histories date back to eighteenth century formally merged in 2000 to become GlaxcoSmithKline Plc (GSK). Thus, GSK was incorporated in December 1999 under English Law and shares were listed on the London Stock Exchange and the New York stock exchange. Eventually in December 2000, GSK acquired Glaxo Welcome Plc and Smithkline Beecham Plc.The synergy coming from their joining together since the year 2000 has been responsible for their growth ever since till today. The company has maintained the turnover at £ 28.4 bn as in last year although earnings per share have sharply declined to 32.1 p from 109.1 p in last year. R & D expenditure was at 14 % of the company’s total sales. There has been 20 % growth in the sale of Horlicks in India, Sensodyne tooth paste has been the fastest growing toothpaste brand during the last five years, 1.4 bn doses of vaccines have been supplied to 179 countries and 24 % of the sales turnover comes from emerging markets excluding USA, Western Europe, Canada, Japan, Australia and New Zealand. Its business model has been “a balanced synergistic business with multiple growth drivers supporting a core pharmaceutical operation”. Vaccines for Malaria at the stage of phase III trials are ongoing in 7 African countries. It has been planned to supply 300 m doses of Synflorix, the vaccination for pneumococcal illness at a reduced price during the next decade to the developing countries in continuation of the supply of the vaccine to Kenya in the past. ...Download file to see next pagesRead More