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Drug company giant slashes prices for developing world

OnMedica Staff

Monday, 16 February 2009

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The new chief executive of GlaxoSmithKline has pledged to cut prices of its drugs in the developing world.

Andrew Witty told The Guardian newspaper the cost of GSK drugs in the 50 poorest nations would be slashed to 25% of the price charged in the UK and the US.

He also promised that the company would share formulas and processes it owned with researchers in the developing world and that 20% of profits earned there would be reinvested in local hospitals and clinics.

Charities have long campaigned for such a policy as patents prevent cheaper generic versions of drugs.

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