Peter Obi reacts to GlaxoSmithKline (GSK) exiting Nigeria after 51 years of operation.
GlaxoSmithKline (GSK) Consumer Nigeria Plc says it plans to cease 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.
GSK said it is holding talks with advisors who will inform shareholders of the next course of action and will work out a quick cash distribution and return of capital to shareholders, excluding GSK UK, if the Securities and Exchange Commission sanctions the plan.
The release fell on the same day GSK Nigeria published its half-year 2023 financials showing a plunge by almost half in revenue to N7.8 billion from N14.8 billion a year ago.
This March, Unilever, another British consumer product powerhouse Unilever announced an end to the production of its homecare and skin-cleansing products, notably Lux, Sunlight and Omo, saying “These categories are margin dilutive and the exit is part of the company’s aim to make its operation in Nigeria competitive and profitable.”
That partnership has birthed a broad range of top-of-mind products from consumer brands like Ribena, Lucozade Macleans and Sensodyne to popular medicines like Panadol and Andrews Liver Salt, which many Nigerians have developed an affinity for.
“Today we are briefing our employees whom we will treat fairly, respectfully and with care, meeting all applicable legal and consultation requirements,” the company assured.
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