GlaxoSmithKline is to expand its pilot programme offering cheaper drugs in poorer countries, according to its chief executive.

Andrew Witty says the Philippines pilot had boosted sales by between 15 and 40% with price cuts of 30 to 50% (Financial Times, Wall Street Journal).

“Making sure the price-volume equation is right is a key piece of the strategy,” says Witty (FT). “We’re willing to flex our business model to show that we are as competitive in the Philippines as in Philadelphia.”

Earlier this year he promised that drug prices in so-called Least Developed Countries would be cut to 25% of prices in richer nations.

However, it is not all going GSK’s way in the pricing stakes. In another article, the WSJ notes:

GlaxoSmithKline PLC and the Russian government are at odds over the price of HIV drugs, underscoring the difficulties drug companies face in the emerging markets on which they have staked their hopes for future growth.

Image: Witty / GSK