GlaxoSmithKline (GSK) is a publically traded company headquartered in the Brentford, London, UK. Currently the sixth-largest pharmaceutical company in the world, management would like to increase market share and capitalization; however, with the looming exit from the European Union, they are concerned with the future operations in both UK and the EU. Management is concerned about the new regulatory environment to establish between the UK and the EU regarding consumer healthcare products (over-the-counter) such as toothpaste, anti-inflammation, anti-acids, respiratory products. They have had legitimate concerns on the impacts of regulations of prescription medicine with a portfolio of approximately 100 prescribable medicines and hundreds of compounds in all stages of development. Finally, management has growing concerns with the availability of qualified scientist to develop new compounds and finish the compounds already under development.

GSK has offices and production facilities around the world and will continue to utilize ALL of their facilities. The management team is seeking guidance on production and R&D for the UK and EU markets. Your team should look at the pharmaceutical industry and develop a recommendation for the research and development division and production division as it refers to the EU and UK markets. Note you will need to assume the UK will crash out of the EU (no deal) and treated as most favored nation status (you will need to look this up). GSK cannot make all of its products in any given country, and moving operations is expensive and time-consuming. Be sure to include a discussion on the regulatory environments the company will face before and after Brexit.

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