Invest in Finland

GlaxoSmithKline

GSK Oy, the GSK group’s Finnish subsidiary, now has annual sales of € 100 million and is Finland’s fourth-largest pharmaceutical company. GSK Oy employs about 150 people, a number which has been fairly stable. In 2004, sales growth totalled 3.1%, but growth in 2005 is expected to be significantly higher.

In May 2004, the GSK group introduced a new structure based on business units. The largest of these is Respiratory Products - for asthma and a condition called COPD (Chronic Obstructive Pulmonary Disease) – and represents some 45% of the company’s total business. Other business units in the group are Hospital and Vaccine Products and products for Cardiovascular Neurology and Metabolic Diseases. Each therapeutic group has closely integrated strategic and tactical sales and marketing units.

While GSK has a history of high levels of investment in Finland, the annual level fluctuates as it related to the number of assets in the pipeline. In 2004, investment in clinical development in Finland totalled approximately € 14 million, about 16% of the company’s annual sales. Since this money comes from the GSK group’s world-wide R&D expenditure budget, the allocation reflects the Finnish unit’s high reputation in this field. Currently (May 2005), about 9,000 patients are involved in clinical trials organised by GSK in Finland.

GSK’s biggest product in Finland is Seretide, medication for asthma and COPD and the world's leading asthma therapy. Developed in the UK, much of the clinical work on Seretide was conducted in Finland. Currently, GSK Oy has a very significant role in the clinical development of a vaccine against cervical cancer, with a very high proportion of the number of patients recruited from Europe being located in Finland. According to Martin Andrews, CEO of GSK Oy, Finland is a recognised centre of excellence for cervical cancer screening and has one of the world’s best-developed cervical-cancer screening programmes. There is also extensive expertise related to the virus that is responsible for cervical cancer.

The material in this case study is based on an interview with Martin Andrews conducted in April 2004. Comments by Mr Andrews on specific aspects of operating in Finland can be found below.

Finland as a market:
“We see Finland as a valuable market. The reasons for this are as follows: it is developed, and it is interested in healthcare provision for its population, and we know that the diseases that our drugs treat are pretty-much universal, so whether you're in Finland or in the UK, the same clinical needs prevail. We think we have a large role to play in helping the Finnish government meet its 'Health by 2015' goals by providing innovative medicines to the right people and making sure that they are used effectively and safely. “

On healthcare infrastructure:
“One area which is interesting about Finland is that you have not only good scientific expertise, but also medical records on individual patients that go back many years. The genetic makeup of the population is also fairly uniform because there hasn't been too much migration into Finland. For companies like us that are interested in doing genetics research, this is a good place to do it.”

On investing in clinical development:
“The reasons why we do it are twofold: firstly because we have quite a large investment in vaccine clinical development and Finland has an enviable record of immunisation expertise, and secondly because patients are very willing to be involved in clinical trials and product development. The infrastructure is very good for conducting clinical trials, the standard of conduct is very high and the infrastructure for getting trials done is also good. Another important point is that both the standard of science and the standard of academic medicine are very high.”

On working with Finns:
“The thing I really like about working with Finns is that you see what you get and you get what you see. It's very refreshing. If people say they're going to do something they do it. The reliability factor is very high. In some ways that's a little scary when you first encounter it - you ask for something to be done and it will be done, but you might perhaps have wanted a little more finesse. Even though it's a bit of a double-edged sword I 'd much rather have it than not.”

“People are very honest, there's a high level of integrity. If they don't know something they tell you. In my experience, people are amazingly determined and resilient, very very tough. If you look at the country’s history it's really not surprising given Finland’s location. And they’re very practical - everything has a function and a purpose. I see that in both business life and in everyday life. I think it helps organisations in Finland be very focused and efficient and effective in what they do.”

On communicating:
“The standard of spoken English here is very good. For me, however, learning Finnish is very hard. But integrating into Finnish life is easy as the standard of spoken English is so high. In GSK we work pretty much in English. Perhaps things take a little bit longer than they would if everyone was working in their native language, but only very rarely is it a problem.”

On lifestyle:
“It's pretty good. One thing I would say is that compared to the UK the population is quite active. Plenty of people here are out walking, jogging, skating, skiing, cycling... much more active than in other countries in western Europe. And people here take their health pretty seriously. “

“I think Finland is "one of Europe's best-kept secrets". Many people know very little about the country before they come here, and they find out that it has a tremendous amount to offer. It's a very safe place - the crime rate is very low. The quality of life is excellent - you have clean air, a very outdoors way of life, the infrastructure – the trams, trains and bus system here are fantastic. You can lead an amazing outdoors life even in the winter - you can go skiing or skating almost on your doorstep, and there’s guaranteed snow.”

“From a business point of view, it's a relatively small country and networks are incredibly important, most people know each other so you can almost guarantee that somebody's either been to school with, or lived next door to, or is related to someone else. When working here, it's the network that counts.”

What makes Finland special?
For me there are essentially three things. Firstly, there’s a resilience and determination here which is not very often seen elsewhere. Secondly, there’s a high degree of pride, but in a very humble way, not boasting. People feel proud of what they do, don't brag about it but just get on and show the results so that others can see. The third thing is just how high the standards are here in terms of education, science and academic credentials. Added together, these make Finland just a little bit different.”

05/2005 

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