Glaxo Wellcome was a pharmaceutical company formed by the 1995 merger of Glaxo plc and Wellcome plc. This union created one of the world’s largest pharmaceutical entities. Its legacy of innovation and medical impact stemmed from its predecessors’ histories. Glaxo Wellcome later became a core part of GlaxoSmithKline (GSK) in 2000.
Origins and Early Milestones
The foundations of Glaxo Wellcome are rooted in two distinct enterprises. Glaxo’s story began in 1873 with Joseph Nathan and Co., a New Zealand trading company. It initially focused on dairy products, notably producing a dried milk product trademarked “Glaxo” in 1906. This venture diversified into pharmaceuticals, introducing its first product, Ostelin (a vitamin D supplement), in 1924. The pharmaceutical arm grew, forming Glaxo Laboratories Ltd. in London in 1935, which acquired its parent company in 1947.
Wellcome’s origins trace to 1880, when American pharmacists Henry Wellcome and Silas Burroughs founded Burroughs Wellcome & Co. in London. The company distinguished itself by popularizing medicine in tablet form and pioneering direct marketing to doctors. Wellcome’s commitment to research led to the Wellcome Physiological Research Laboratories in 1894 and the Wellcome Tropical Research Laboratories in Sudan, which included a mobile laboratory. Upon Henry Wellcome’s death in 1936, his will established the Wellcome Trust, a charitable foundation dedicated to funding research to improve human and animal health, funded by company profits and later its sale.
Pioneering Pharmaceutical Innovations
Both Glaxo and Wellcome, and later Glaxo Wellcome, contributed to pharmaceutical innovation. Glaxo’s research in respiratory medicine led to Ventolin (salbutamol), an important bronchodilator for asthma management, introduced in 1969. This provided faster-acting relief for asthma sufferers. Glaxo also developed Zantac (ranitidine), a widely prescribed ulcer medication. Its success in managing gastric acid conditions marked an advance in gastroenterology.
Wellcome’s research yielded treatments, particularly in virology. Its key contribution was AZT (zidovudine), a pioneering drug for HIV/AIDS. Introduced in the mid-1980s, AZT was one of the first antiviral medications to demonstrate efficacy against HIV. This drug emerged from dedicated research by Burroughs Wellcome & Co. scientists. Company researchers, including Nobel laureates Gertrude B. Elion and George H. Hitchings, also contributed to discoveries for malaria, leukemia, and gout.
Glaxo Wellcome continued this legacy of innovation, leveraging both companies’ strengths. By 1999, Glaxo Wellcome was recognized as the world’s largest manufacturer of drugs for asthma and HIV/AIDS. Its commitment to research and development across diverse therapeutic areas led to further treatments.
The Transformative Mergers
The pharmaceutical landscape underwent significant consolidation in the late 20th century, with Glaxo Wellcome involved in key corporate events. The first major merger occurred in 1995, when Glaxo plc and Wellcome plc combined to form Glaxo Wellcome plc. This merger was considered one of the largest in UK corporate history, creating the world’s largest pharmaceutical company. The strategic rationale for this union included creating synergies in research and development and expanding market share.
Just five years later, an even larger merger reshaped the company’s identity. In January 2000, Glaxo Wellcome plc announced its intention to merge with SmithKline Beecham plc, a transaction completed that December. This merger formed GlaxoSmithKline (GSK), creating the world’s largest pharmaceutical company by market share at the time, controlling nearly seven percent of the global pharmaceuticals market.
The strategic reasons for this consolidation included achieving greater economies of scale, enhancing research and development capabilities, and broadening the combined company’s product portfolio. Glaxo Wellcome’s strength in respiratory and HIV treatments complemented SmithKline Beecham’s focus on vaccines and other areas. The formation of GSK brought together the rich heritage and research focus of Glaxo Wellcome into a new global entity.