GlaxoSmithKline acts to prevent illegal, potentially unsafe imports of prescription drugs

PHILADELPHIA, January 21, 2003 -- In the interest of patients and their safety, GlaxoSmithKline will not supply prescription drugs to Canadian wholesalers and pharmacies that export medicines outside Canada. G S K understands the concerns of Americans without prescription drug coverage but believes that ordering medicines over the Internet from Canada or other countries is not the answer and puts patients at risk.

"G S K is committed to working with the American government and other stakeholders to ensure that those who need our medicines are able to obtain access," said Chris Viehbacher, President G S K U S Pharmaceuticals. "We support passage of a Medicare prescription drug benefit that will help ensure that patients have a better alternative to the illegal importation of medicine."

G S K has responded to concerns about affordability by providing more than $150 million of medicines free of charge to the most needy and by offering savings up to 40 percent through the Orange Card and the Together R x card. Indeed, there is no significant price difference between advertised Internet prices from Canada and our price in the U S through the Orange Card or Together R x.

The most immediate step to ensure access to medicines is for Congress to enact a Medicare prescription drug benefit. That issue is currently a priority for Congress and G S K is working to achieve support for this reform.

Additionally, under the Food Drug & Cosmetics Act, the interstate shipment of any prescription drug that lacks required F D A approval is illegal. The Internet poses risks for patients since the origin and authenticity of the product cannot be guaranteed and offers no assurances that patients have access to appropriate physician involvement or access to the dispensing pharmacist.

The F D A Consumer magazine recently quoted Joe McCallion, a consumer safety officer in the F D A's Office of Regulatory Affairs, as saying that, "If you buy drugs that come from outside the US, the F D A doesn't know what you're getting, which means safety can't be assured." (http://www.FDA.gov/FDAc/features/2002/502_import.html)

Craig Fuller, president and C E O of the National Association of Chain Drug Stores, wrote in November, "If the illegality of these schemes does not concern patients, the risks associated with buying drugs of questionable quality from unknown pharmacies in Canada certainly should."

Enquiries
U S Media Nancy Pekarek
Mary Anne Rhyne
Patricia Seif (215) 751 7709
(919) 483 2839
(215) 751 7709

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Siobhán Lavelle 020 8047 5502
020 8047 5502

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(215) 751 5419

European Analyst/Investor
Duncan Learmouth
Philip Thomson
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020 8047 5543
020 8047 5542

Updated January 21, 2003 © 2001-2003 GlaxoSmithKline - All Rights Reserved

GlaxoSmithKline responds to critics of its cross-border Internet sales policy

Philadelphia, February 13, 2003 - GlaxoSmithKline today responded to concerns about steps the company has taken to prevent non-F D A approved drugs from being sold by Canadian internet pharmacies to consumers in the United States.

G S K Canada has begun to restrict shipments of prescription medicines to identified Internet pharmacies in Canada for export to the United States or elsewhere. At the same time, the company is safeguarding an adequate supply of medicines to Canadians. Critics allege that the company’s motives are purely financial; this is not the case. G S K estimates cross-border Internet sales of its products currently represent less than one day of its total U S sales. Canadian Internet pharmacies engaged in these practices violate U S laws designed to protect patients.

G S K shares the very real concerns of American patients -- particularly seniors -- over access to affordable prescription medicines since medicines provide significant value to both patients and our healthcare system in terms of improving health and quality of life and lowering the overall cost of health care. Understandably, patients will look for ways to save money -- particularly those who pay for medicines out of their own pocket - and cross-border Internet sales make it easier to access what patients believe are cheaper versions of their usual medicines available in Canada.

The sale of non-F D A approved medicines to U S customers via the Internet, with all the attendant safety issues, is not the way to resolve the issue of affordability of medicines in the U S. Passage of a Medicare prescription drug benefit is the appropriate way to guarantee affordable access to medication for American seniors. Instead of being encouraged to support illegal trade and poorly regulated and potentially unsafe business practices, American seniors should be encouraged to contact their Congressional Representatives to pass a Medicare prescription drug benefit.

Enquiries
U S Media Nancy Pekarek
(215) 751 4232

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