Lazi Writa
The British pharmaceutical company GlaxoSmithKline (GSK) has made an announcement of their plans to stop producing prescription drugs and vaccines in Nigeria after 51 years of existing in business.
The international pharmaceutical business announced it would switch to a third-party direct distribution approach for its pharmaceutical products in a statement made to the Nigerian Exchange Limited.
The firm also stated that it is currently coordinating the following measures with its advisors and that it intends to submit an approach of arrangements to the Securities and Exchange Commission (SEC) in order to potentially return cash to its regional shareholders.
In their statement sent to the Nigeria Exchange ,
“The Haleon Group has also separately informed the Board of its intent to terminate its distribution agreement in the coming months and to appoint a third-party distributor in Nigeria for the supply of its consumer healthcare products. For the above reasons, and having, together with GSK UK, evaluated various other options, the Board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations. Today we are briefing our employees whom we will treat fairly, respectfully and with care, meeting all applicable legal and consultation requirements.”
GlaxoSmithKline (GSK), a large international pharmaceutical and biotechnology firm based in the United Kingdom, has made preparations to cease operations in Nigeria. Originally named Beecham Limited, GlaxoSmithKline Consumer Nigeria Plc was founded in Nigeria in 1971 and started operating in 1972.
In 1977, the business was listed on the Nigerian Stock Exchange.
GSK Nigeria reported a decline in half-year sales to N7.75 billion from N14.8 billion in the same time a year ago as a result of increased competition from local businesses and importation from India and China.
Frederick Ichekwai, the company secretary for GSK Nigeria, who announced the decision in a filing with the Nigerian Exchange Limited yesterday, added that the parent company, GSK Plc UK, had also announced its intention to stop marketing its prescription drugs and vaccines through the Nigerian subsidiary.
In a statement made by its spokesperson, Omongiade Ehighebolo: “In our published Q2 results we disclosed that the GSK UK Group has informed GlaxoSmithKline Consumer Nigeria PLC of its strategic intent to cease commercialization of its prescription medicines and vaccines in Nigeria through the GSK local operating companies and transition to a third-party direct distribution model for its pharmaceutical products,”
“The board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations,” GSK Nigeria said.
The development comes two months after the company lamented the difficulty in accessing currency, stating that it affected its supply of products to Nigeria.
“The challenge in accessing currency is affecting our ability to maintain a consistent supply of medicines and vaccines in the market,” spokesperson, Omongiade Ehighebolo.
The business announced that it would choose a local Nigerian third-party distributor to handle the distribution of its medical supplies for consumers. The company’s difficulties obtaining foreign exchange caused a disruption in the provision of medications in Nigeria, which led to this exit.
The firm also stated that it is currently coordinating the following measures with its advisors and that it intends to submit a scheme of arrangements to the Securities and Exchange Commission in order to potentially return cash to its regional shareholders.
Tosin Jolayemi, managing director of Daily Need Industries Limited and chairman of the Pharmaceutical Manufacturers Group of Manufacturers Association of Nigeria (PMGMAN), reacted to GSK ceasing operations in Nigeria by telling The Guardian yesterday: “I don’t have enough information to comment on the pulling out of GSK. GSK is one of the most seasoned pharmaceutical producer and marketing organizations in the world, thus Nigeria cannot benefit from their withdrawal. It would be difficult to find the technological know-how, marketing expertise, and model being used by Nigerian local manufacturers.
GSK is a top manufacturer of over-the-counter (OTC) medications worldwide. It dominates the OTC drug industry in 36 markets, and it leads the market for specialized oral care.Its portfolio comprises some of the most well-known and trusted brands in the world, including Sensodyne, Voltaren, Otrivin etc. The pharmaceutical company dominates the OTC drug industry in 36 markets, and it leads the market for specialized oral care.
The international pharmaceutical organization, which was originally incorporated under the name Beecham, is well-known for a variety of goods, including Andrews Liver Salt, Ribena, Lucozade, and Panadol. Its portfolio comprises some of the most well-known and trusted brands in the world, including Sensodyne, Voltaren, Otrivin, and Panadol.
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