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Pharmaceuticals giant GlaxoSmithKline is not worried about looming cuts to government budgets because it is “used to” regular price reductions, its chief executive has told shareholders.
The firm had dealt with a annual 3% reduction in the price put on its products, said Andrew Witty.
“We are moving into unpredictable times. Just in the last week we have seen the government in Greece cut prices by 24% and Germany has cut prices by 10%.”
While the cuts seemed dramatic, GlaxoSmithKline is used to dealing with European price cuts, Mr Witty insisted, and means it remains crucial that “value-for-money” medicine continues to be produced which is “priced at a level for governments to purchase”.
The company board also answered questions about directors’ pay, cheap vaccines for malaria and reducing research in neuroscience. Shareholders passed all resolutions.
Copyright Press Association 2010