One of the world’s leading over-the-counter (OTC) medicines company, GSK UK Group, has informed GlaxoSmithKline Consumer Nigeria PLC of its strategic intent to cease commercialization of its prescription medicines and vaccines in Nigeria.
The Company made the announcement in a statement signed by the Company Secretary, Frederick Ichekwai and 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.
The letter read: “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 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 said it was conscious that shareholders would have many questions; and that it has been working assiduously with its professional advisors to agree on next steps and will soon submit 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,” it added.
It further advised Shareholders to seek professional advice and continue to exercise caution when dealing in the company’s shares until a further announcement is made.
In 2019, GlaxoSmithKline Nigeria announced the planned shutdown of its manufacturing plant located in Agbara Industrial Estate, Ogun state by 2021.
In a notice sent to the Nigerian Stock Exchange, the pharmaceutical company said the move is part of a restructuring of its internal operating model.
