Glaxo Unveils Discount Plan for the Elderly

GlaxoSmithKline, the world’s second-largest drug maker, unveiled plans to discount the cost of its medicines to millions of low-income citizens in the United States.

The British firm said the move--which comes amid widespread complaints over the high cost of many drugs--would lead to average savings of 30% off the price paid by qualifying senior citizens who lack prescription drug coverage.

Under the scheme, as many as 11 million elderly people will qualify to receive a card that can be presented at pharmacies to receive discounts on GSK medicines sold outside hospitals.

Eligible citizens are those 65 and older with annual incomes at or below the federal poverty level, which is $26,000 for individuals and $35,000 for couples.

Ensuring seniors have affordable access to medicines has been a hot topic in the U.S. for several years, with politicians studying ways to add drug benefits to Medicare, the federal health insurance program for the elderly and disabled.

GSK, whose brands include Advair for asthma, diabetes drug Avandia and antidepressant Paxil, said its move would help bridge the gap until Medicare reforms are up and running.

GlaxoSmithKline’s American depositary receipts rose $1.15 to $56.75 on the NYSE.