Fortunately for Glaxo Smith Kline, all drug companies very successfully use the broad differentiation strategy. By patenting their formulas, drug makers can prevent others from even having a similar medication for several years. By holding this exclusivity, GSK and other drug manufacturers can set their own pricing, and often, due to the very differentiated uses of these (often life-saving) drugs can set them as high as they want.
This strategy is made very apparent by drugs like Avandia, for which there is no similar drug or generic. (Which, in this case, may be fortunate, as this drug was rushed to production without thorough enough testing and is now being pulled from many locations.)
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