GlaxoSmithKline office in Ilupeju Lagos
GlaxoSmithKline Consumer Nigeria Plc has decided to cease operations in the country, after 51 years, according to the board of directors of the company.
In a statement sent to the Nigeria Exchange, the company said it is closing its operations because of the decision by the GSK UK Group 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 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.
“The Board is conscious that shareholders will have many questions; we have been working assiduously with our professional advisors to agree on next steps and we will be shortly submitting to the Securities and Exchange Commission (“SEC”) a draft Scheme of Arrangement which may, if approved, see shareholders other than GSK UK, receive an accelerated cash distribution and return of capital.
“The Board acknowledges the support of the GSK Group in its intentions to make this possible, full details of which we hope to publish shortly.
“In the meantime, however, we cannot give you assurance of the final terms of any scheme, or that any scheme will be approved by the SEC or by shareholders.
“Shareholders are advised to seek professional advice and continue to exercise caution when dealing in the company’s shares until a further announcement is made”.
The statement dated 3 August was signed by company secretary, Frederick Ichekwai.
GlaxoSmithKline operates from Ilupeju in Lagos and also has a plant in Agbara, Ogun state.
It started business as Beecham in Nigeria in 1972 as an affiliate of GlaxoSmithKline Worldwide.
It was quoted publicly in 1977 on the Nigerian Stock Exchange.
According to its website, its Consumer Healthcare business develops and markets products in Pain relief, Oral health, Digestive health.
It has a portfolio of some of the world’s most trusted and bestselling brands which includes Sensodyne, Voltaren, Otrivin and Panadol.
It is one of the world’s leading over-the-counter (OTC) medicines company. It holds number one positions in OTC medicines across 36 markets, and it is a market leader in specialist oral care.
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