How does GSK make Money

In this blog, we will discover “how does GSK make money”, Firstly we will first analyze the current situation of GSK in the market and how it became so big, then we will analyze the business model the Company operates on to find out the revenue-making tactics that they use to generate money.

How does GSK make money?

The company that is known as GlaxoSmithKline (GSK) makes money by selling innovative drugs such as Vaccines, Medicines and Customer Healthcare that are marketed worldwide, in almost 150 countries around the world.

GSK facts

IndustryDrugs & Bio-technology
CountryUnited Kingdom
Chief Executive OfficeEmma N. Walmsley
Current Sales$43.7B

What is GSK

GSK is an English multinational pharmaceutical firm with its headquarters in London. GSK was the 6th largest pharmaceutical company in the world back in 2029, losing only Pfizer, Novartis, Roche, Sanofi, and Merck & Co.

Pharmaceutical company GlaxoSmithKline (GSK) conducts research, develops pharmaceuticals, makes vaccines, and sells consumer health and wellness products. The headquarters of GlaxoSmithKline Plc are located in England, the capital of London.

The firm is structured into four business sectors:

  • Pharmaceuticals
  • Vaccines
  • consumer healthcare
  • corporate leadership team


This sector focuses on the study and production of medicines for the treatment of respiratory and infectious diseases, cancer, and immuno-inflammatory disorders.

The Vaccinations sector, for example, is involved in the development of vaccines for both children and adults to treat a variety of infectious diseases, such as hepatitis A and B, diphtheria, typhus, and whooping cough, measles, mumps, and rubella, poliomyelitis (poliomyelitis), typhoid fever, influenza, and bacterial meningitis. They also excel in dental health, pain management, lung health, nutrition and gastrointestinal health, and skin health.

Consumer Healthcare

The goal of this division of GSK is to develop and promote products that are geared at consumer healthcare.

Corporate leadership team

The corporate leadership team is a GSK component associated with business activity management. The team was established in 1715 and is based in the English county of Middlesex.

What is the history of GSK?

In 1873, Joseph Nathan and Co. was founded in Wellington, New Zealand. Joseph Edward Nathan was the owner of a large trade company. In 1904 they began creating dried-milk baby food from leftover milk from Bunny Thorpe dairy farms. Glaxo was given the name for the resulting substance, which was later advertised with the tagline “Glaxo creates bonnie babies.” Burroughs Wellcome & Business was created in London in 1880 by Henry Wellcome, an American chemist, and Silas Burroughs. In 1902, the Wellcome Tropical Research Laboratories initially opened its doors. Burroughs Wellcome launched their company’s research and manufacturing efforts in Tuckahoe, New York, in the 1920s.

In 1995, Glaxo and Wellcome amalgamated to become Glaxo Wellcome plc, which is today known as Glaxo Wellcome. Glaxo Wellcome restructured its research and development efforts that year, laying off 10,000 staff globally, shutting its R&D centre in Beckenham, Kent, and establishing a Medicines Research Centre in Stevenage, Hertfordshire, among other changes. Glaxo and Wellcome merged in 1995 to form Glaxo Wellcome plc. The same year, Glaxo Wellcome reorganised its research and development operations, laying off 10,000 employees globally, shutting its R&D centre in Beckenham, Kent, and building a Medicines Research Centre in Stevenage, Hertfordshire.

In 1830, John K. Smith opened the first pharmacy in Philadelphia. In 1865, Mahlon Kline joined the business, which was renamed Smith, Kline & Co. ten years later. In 1891, it amalgamated with French, Richard, and Company, and in 1929, it changed its name to Smith Kline & French Laboratories as its focus shifted to drug discovery. SmithKline Beckman merged with Beecham Group in 1989 to form SmithKline Beecham PLC, with its corporate headquarters shifting from the United States to England. In order to enhance the Department of Research and Development in the United States of America In contrast, the company purchased a new research centre in 1995, and a second facility in England, located in Harlow, opened its doors in 1997.

Research areas of GSK


GSK intends to manufacture a variety of pharmaceuticals in order to create treatments for serious diseases such as asthma, cancer, infections, diabetes, and mental health. Amoxicillin and amoxicillin-clavulanate for bacterial infections, ticarcillin-clavulanate, mupirocin, and ceftazidime for parasitic infections, zidovudine for HIV infection, valacyclovir for herpes virus infections, albendazole for parasitic infections, sumatriptan for migraine, lamotrigine for parasitic infections, sumatriptan for migraine, lamotrigine for parasitic

Vaccine for Malaria

It has been discovered that Malaria kills over 650,000 people every year, the most of whom are in Africa. As a result, GSK requested regulatory approval for the first malaria vaccine in 2014. Known as RTS S, the malaria vaccine was developed in conjunction with the PATH vaccination effort and the Bill and Melinda Gates Foundation with the support of the Bill and Melinda Gates Foundation. GSK agreed to offer the vaccine in underdeveloped nations for a price that is 5 percent more than the vaccine’s manufacturing cost.

Consumer healthcare

GSK’s consumer healthcare division, which is focused on the sale of oral healthcare products such as Aquafresh, Macleans, and Sensodyne toothpaste tubes, generated £5.2 billion in revenue for the year 2013. They also sell beverages such as Horlicks, Boost, and a chocolate-flavored malt drink from India, among other things.

In 2013, GSK sold its soft drink brands, Lucozade and Ribena, to Suntory for £1.35 billion, bringing the total value of GSK’s soft drink assets to £1.35 billion. It was decided to continue to promote Alli, a prescription weight-loss medicine, in the United States and Puerto Rico despite probable revisions in order to respond to consumer concerns.

COVID-19 vaccine

The United Kingdom government has committed to acquire 60 million doses of a COVID-19 vaccine manufactured by GlaxoSmithKline (GSK) by the year 2020. The technique is based on GSK’s pandemic technology, which makes use of recombinant proteins to combat disease outbreaks.

GSK claimed to be able to produce one billion doses that would be submitted to successful tests in the beginning but would be cleared for use by the FDA by the end of the decade.

On the other side, GlaxoSmithKline (GSK) has signed to a $2.1 billion deal with the United States to manufacture 100 million doses of the Covid-19 vaccine.

GSK business operations


When it comes to the biopharmaceutical industry, a firm assumes entire control over all aspects of the research, development, and commercialization (DDC) processes. Under this strategy, the company develops the product in-house and keeps the commercial capability to distribute the product to patients and other customers. An excellent Pharmacy company needs the following characteristics.

Excellent management

When big data science is paired with the ever-changing IT standards in the global arena, better data integration results. As a consequence, intelligent executives in a range of enterprises will see big data for what it is: a new opportunity for information coordination across organizations or industries in the medicine industry.

Innovation in the Workplace

Corporate innovation is only achievable when a group of individuals works together to develop a notion into a viable proposition for the company’s needs and objectives. Afterwards, a collaborative effort is begun in order to bring that concept to fruition as a product or service for the general public. It is due to the industrialization of technology that businesses now function and give services to their clients in a different manner. For the sake of summarising, the digital era has created an environment that is conducive to the creation of new business models.

Information about the customer

In order to guarantee that their customers obtain a reasonable degree of privacy while receiving free services, customer data strives to ensure that the firm retains their personal information. On the other hand, they also provide a platform for users to communicate with one another and exchange information. The collection and analysis of consumer data for internal use should be a top priority, and the distribution of such data to interested third parties can be beneficial as well as beneficial.

Changing from pushing to pulling

When there is a flow of information between two parties who are both interested in the same thing, this is referred to as a push-pull operation in business terms. If customers are looking for things or information on marketplaces, we have providers who are urging them to go to their websites or to their marketplaces. Push and pull mechanisms are commonly utilised in many phases of the logistics and supply chain.

Medical and allied health professionals’ services are provided by companies that are concerned with the prevention, treatment, management, and preservation of sickness that affects customers’ mental and physical well-being. Medical doctors, nurses, and hospitals are all part of the team, as well as private, public, and volunteer organisations. The services provided by these specialists include diagnostic, preventative, remedial, and therapeutic procedures. The group also includes medical equipment and pharmaceutical makers, as well as health insurance firms.

In this blog, we answered the question “How does GSK make money”. We discovered that it Makes money by selling innovative drugs such as Vaccines, Medicines and Customer Healthcare that are marketed worldwide, in almost 150 countries around the world.

Frequently asked questions: (FAQ): How does GSK make money?

What is the GSK strategy?

The new GSK would prioritize vaccine research and development as well as commercial investment. Which is expected to account for about three-quarters of overall corporate sales by 2026. Vaccines are expected to grow at a high single-digit percent CAGR in 2021-26 as a result of covid-19.

What is GSK most known for?

GlaxoSmithKline is a global pharmaceutical business best known for its popular prescription medications, vaccines, and consumer health products. GlaxoSmithKline is headquartered in London, England. In addition to the antidepressant Paxil and the diabetic Avandia, the corporation offers hundreds of other medications, including Imitrex, to its customers (sumatriptan).

What are the main activities of GSK?

GSK’s primary operations include the development of medications that improve the health of millions of people worldwide via the development of innovative medicines, vaccines, and consumer healthcare products.

What kind of company is GSK?

GlaxoSmithKline PLC is a multinational pharmaceutical company. The company conducts research and development in three key areas: pharmaceuticals, vaccines, and consumer healthcare. Tablets, creams/ointments, inhalers, injections, liquids, and sterile items are among its product compositions.

Is GSK the largest pharmaceutical company?

GSK is the tenth largest pharmaceutical firm and rated #296 on the 2019 Fortune 500, trailing China Resources, Johnson & Johnson, Roche, Sinopharm, Pfizer, Novartis, Bayer, Merck, and Sanofi.

Is Pfizer buying GSK?

In August, SK and Pfizer completed an all-equity transaction that combined the two consumer health product units; GSK retained a majority 68 percent ownership in the joint venture.


Compton, K. (2021, March 24). GlaxoSmithKline (GSK). Retrieved from Drug Watch: