Pharmaceutical Giant GSK Announces Its Intention To Cease Operation In Nigeria

British multinational drugmaker and biotechnology company GlaxoSmithKline Plc (GSK) said Thursday it is closing the curtains on its Nigerian subsidiary after a “strategic intent” to consider other favourable business options.

The Company made this announcement via an official statement signed by Company Secretary, Frederick Ichekwai which was sent to the Nigeria Exchange Limited (NGX). 

According to its unaudited HY 2023 financial statement, the company noted that it would appoint a local third-party distributor in Nigeria for the supply of its consumer healthcare products. 

GSK’s operations in Nigeria will no longer involve commercialising its prescription drugs and vaccines, meaning its activities in the country now entail the distribution of its pharmaceutical products through a third party only.

“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,” the company said in a note to the Nigerian Exchange.

The decision cuts GSK’s ties of more than half a century with Africa’s largest economy, where it commenced business in 1972 through its precursor, Beecham Limited.

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.

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.”