South First Strategy

Some excerpts from BusinessWeek article: Vaccinating The World's Poor by Kerry Capell in Rixensart, Belgium | Apr 26 '04

Jean Stephenne is an unlikely revolutionary. The president of GSK Biologicals, the vaccine subsidiary of GlaxoSmithKline PLC, is unusually soft-spoken, almost shy. But his gentle demeanor belies a bold risk-taker willing to gamble hundreds of millions of dollars on vaccines to combat diseases in the world's poorest countries.

Stephenne's bet this year may be the biggest in his 30-year career at GSK Bio, in Rixensart, Belgium. He is investing as much as $300 million to test a vaccine against rotavirus, a highly infectious parasite that can cause deadly gastroenteritis. It is one of the largest and most expensive such trials since the Salk vaccine was tested against polio more than 50 years ago. But this time, most of the 60,000 inoculated children are in Latin America. And even though rotavirus is endemic throughout the world, Stephenne submitted the vaccine for approval first in Mexico, where authorities could give it the nod by the end of this year.

For Glaxo and the drug industry, the trial marks a new paradigm in vaccine development. Traditionally, products have been introduced in wealthy countries first, reaching developing countries only after the manufacturer has recouped the cost of research and development, which can take decades.

Stephenne is taking the opposite tack -- and if he succeeds, it'll be the first time a new vaccine is launched in a country with massive medical need but little profit potential. His plan is to roll out the vaccine in low- and middle-income countries in Latin America, Asia, and eventually Europe -- saving the U.S., the most lucrative market, for last.