This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-22476556

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
GlaxoSmithKline launches Africa charity partnership GlaxoSmithKline launches Africa charity partnership
(about 7 hours later)
Britain's biggest drug manufacturer has launched a new partnership with Save the Children to develop medicines to tackle child mortality in Africa.Britain's biggest drug manufacturer has launched a new partnership with Save the Children to develop medicines to tackle child mortality in Africa.
GlaxoSmithKline and the charity said together they could save a million children's lives.GlaxoSmithKline and the charity said together they could save a million children's lives.
Save the Children chief executive Justin Forsyth said there was the potential for "huge gains".Save the Children chief executive Justin Forsyth said there was the potential for "huge gains".
But critics are wary about the close involvement of a pharmaceutical company in charitable work. The charity admitted that its alliance with GlaxoSmithKline would be controversial.
Stop infection However, it said, the benefits would be massive.
Save the Children admitted that its alliance with GlaxoSmithKline would be controversial - but said the project would save children's lives.
For example, a formula for mouthwash will be turned into a gel that can be applied to the umbilical cords of babies to stop infection.For example, a formula for mouthwash will be turned into a gel that can be applied to the umbilical cords of babies to stop infection.
The new medicines will be sold at cost price.The new medicines will be sold at cost price.
'Key role'
GlaxoSmithKline (GSK) said the partnership would set a new standard for how companies and charities could work together.GlaxoSmithKline (GSK) said the partnership would set a new standard for how companies and charities could work together.
Sir Andrew Witty, chief executive of GSK, told BBC Radio 4's Today programme: "Save have a key role because for the first time we're involving a voice from an NGO [non-governmental organisation] in our research and development agenda setting for our paediatric development programmes focused on the developing world."
He said GSK expected to give around £15 million to Save the Children "over the next several years".
He added: "A partnership of this scale gives us an opportunity to do something amazing."
Initially, two flagship programmes will operate in DR Congo and Kenya.Initially, two flagship programmes will operate in DR Congo and Kenya.
These will be followed by other initiatives in Sub-Saharan Africa, Asia and Latin America.These will be followed by other initiatives in Sub-Saharan Africa, Asia and Latin America.
'Harness power''Harness power'
Mr Forsyth said: "This ground breaking partnership involves both organisations working in genuinely new ways to save the lives of a million children. Mr Forsyth said: "This ground breaking partnership involves both organisations working in genuinely new ways to save the lives of a million children."
"In the past Save the Children may not have embarked on a collaboration with a pharmaceutical company like GSK. GSK plans to identify the largest causes of child death and look at simple, effective interventions, that can be delivered on the ground by Save the Children, Sir Andrew said.
"But we believe we can make huge gains for children if we harness the power of GSK's innovation, research and global reach." Mr Forsyth admitted in the past Save the Children "may not have embarked on a collaboration with a pharmaceutical company like GSK".
Sir Andrew Witty, chief executive of GSK, said: "A partnership of this scale gives us an opportunity to do something amazing." He said he used to campaign against GSK when "they kept the prices very high for Aids drugs".
However, BBC international development correspondent Naomi Grimley said critics questioned whether the pharmaceutical giant was just after good publicity - and access to emerging economies that would spend more on drugs in future. But, he said, GSK had changed and was now at the forefront in terms of access to medicine and investment in malaria vaccines.
Sir Andrew said the company was not looking to make a profit.
He said: "Remember we've been working since 1984 on hopefully the world's first malaria vaccine, we've committed also that we will commercialise that at cost with only a 5% margin which we've promised to reinvest back into malaria research.
"So we've made very clear that we are not looking to make a return from the source of these activities, we are equally not looking to make a loss - we need it to be sustainable."
'Paid rivals'
The news follows a number recent cases involving the pharmaceutical giant.
Last month, GSK was accused of market "abuse" by the consumer watchdog, the Office of Fair Trading (OFT).
The OFT alleged that the pharmaceutical giant paid rivals to delay the release their own versions of GSK's Seroxat treatment.
Sir Andrew said: "These matters have been the subject of investigation by the European Commission twice and on both occasions they closed those investigations without any further action."
In 2012, GSK was fined £1.9 billion by American health authorities, the largest healthcare fraud settlement in US history.
The drug giant admitted promoting two antidepressant drugs for unapproved uses, including treatment of children and adolescents. The illegal practice is known as off-label marketing.
GSK also conceded charges that it had failed to report safety data about its diabetes drug Avandia to the Food and Drug Administration (FDA).