GSK Nigeria announced the development in a statement sent to the Nigeria Exchange Limited (NGX) on Thursday
The company said it plans to stop operations after evaluating the options for moving to a third-party distribution model
GlaxoSmithKline (GSK) Consumer Nigeria Plc on Thursday disclosed that it will shut down its production line in Nigeria due to unfavourable economic situation.

The company said it plans to stop operations after evaluating the options for moving to a third-party distribution model for its pharmaceutical products.

The company is well-known for its products such as Augmentin, Neosporin, Panadol, Sensodyne, Advair, Ventolin, Theraflu, among others.

GSK Nigeria announced the development in a statement sent to the Nigeria Exchange Limited (NGX) on Thursday and signed by Frederick Ichekwai, the company secretary.

The company said it is working with its advisers to agree on next steps and plans to submit a scheme of arrangement to the Securities and Exchange Commission (SEC), which if approved, will see it return cash to shareholders except its parent company, GSK UK.

The company, which employs over 290 people, assured that all necessary legal proceedings would be met as regards employees and shareholders.

‘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 statement reads.

“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.”

https://www.withinnigeria.com/news/2023/08/04/after-over-50-years-of-operations-glaxosmithkline-shuts-down-in-nigeria-amid-economic-downturn/?amp=1

APC

This is why I always laugh when I hear minors telling the government to build industries. The question is, who is honest to run the company without fraud being perpetuated by/from one department to another starting from the gate man, I mean security personnel to workers, supervisors and developmental managers?

As an Industry specialist, we have a few honest people who rely on their salaries and work efficiently for the growth of the company. This includes oil and gas companies.

immortalcrown:
APC

More to follow, renew shege

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If you buy ciprofloxaxin made by a local pharmaceutical company at 500 naira, the one made by GSK will be 2500 naira. My question is, won't the same drug from different brands do same job in the body? They never cee somtin

And if you think the one made by local companies is below par, why don't government shut them down?

Mitcheew

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MadamExcellency:
This is why I always laugh when I hear minors telling the government to build industries

Why you dey laff.

Even the German an us government of old built factories until they made it.

The Chinese government still build factories till today..

Nigerian government of old built the refeneries that sold fuel at reasonable prices..

They also invested in biz.

What's your point sir?

A third world government must build factories..



U are very strange..

LikeAking:


Why you dey laff.

Even the German an us government of old built factories until they made it.

The Chinese government still build factories till today..

Nigerian government of old built the refeneries that sold fuel at reasonable prices..

They also invested in biz.

What's your point sir?

A third world government must build factories..



U are very strange.

Most Nigerians can't do without fraud. From gatemen to loaders, to invoicing clerks, night shift supervisors, departmental managers etc are looking up to Yahoo boys and politicians as role models.

MadamExcellency:


Most Nigerians can't do without fraud. From gatemen to loaders, to invoicing clerks, night shift supervisors, departmental managers etc are looking up to Yahoo boys and politicians as role models.

They will hand the factories to private companies to run... It will reduce it..

The problem nis from they way the companies recruit in Nigeria..

They just recruit who ever they see..

And the pay is very low.

Cost of production is very high,in Nigeria.

But, they will soon blame Obi for this.

Thîefnubu is an animal

God help Nigeria

Terrible

Renew shege and loss of Job.

I blame this on bad government policies.

Produce in ghana, or import and distribute in Nigeria. Nigeria don't need to produce anything, only consume it.

Bad management I guess