A: Healthcare costs are rising, and even though medicines represent only 10 percent of healthcare costs -- and pharmaceutical costs are growing slower than other components of healthcare -- medicines are still not appreciated for their ability to save healthcare costs as well as improve health. We are working hard to create an understanding of the importance of prevention, better management of chronic disease and innovation in reducing healthcare costs while improving quality.

Q: What's the most innovative thing you've seen or heard another company doing?

A: The Gates Foundation for addressing developing country issues.

Q: How about your own company?

A: GSK restructured its research and development operation to take advantage of size, where being a big company is an advantage, and to create smaller units that are more nimble and entrepreneurial. The statistics today are showing that this approach is paying off with a broader and more complete pipeline of medicines reflecting increased productivity.

Q: Who or what is your biggest competition? Why?

A: Any new product innovation is our biggest competitor, and that is why we are so focused on R&D. There is tremendous competition of ideas in the global marketplace. That's one reason GSK has restructured its R&D organization to develop new ways to try to tap into good ideas where ever they may be -- within our company or outside of it. It is truly innovate or die in this industry.

Q: What is the biggest issue facing the state?

A: Education -- K-12, science and math education as well as graduation rates -- is a big issue for the state. We need to sift through the success, separate the rhetoric, and honestly assess where we are as a state. What things provide us with competitive advantage, and what things are standing in the way? Is the education bureaucracy a help or a hindrance as we prepare out children to compete globally?

Q: North Carolina sees biotechnology and service companies as a key to its future. Is that the right path? Should we be giving incentives to attract them here?

A: The health sciences sector as a whole is great opportunity and strategic advantage for North Carolina. We have world renowned health science centers, RTP with larger pharmaceutical and bio and new start-ups, and leading high-tech research. This gives the state a lot to build upon.

Other states and countries are offering incentives, so whether we like it or not, they will be a consideration for businesses considering a move to our state. But the primary reason for companies to consider North Carolina must be the business and political climates and natural and education resources. That's where we need to invest most of our energy and resource.

Q: What's the biggest change in business today compared to when you started?

A: There is no question that the increasing role of government as a payer in healthcare is the biggest change in our business. With the Medicare drug benefit, the government now pays for more than half of our medicines. The government's share of the market used to be more like one-third.

Q: Why should an investor invest in your stock today?

A: GSK is at the forefront of the pharmaceutical industry with one of the largest and most mature pipelines in the industry -- 149 projects with 38 percent of the pipeline in late stages of development.

We will launch eight products this year: Rotarix, Avandaryl, Arranon, Coreg CR, Entereg, Trexima, Altabax and Alli. We will file seven products with the FDA -- Allermist, H5N1 vaccine, mepoluizumab, Lamictal XR, Cervarix, Tykerb and eltrombopag.