British multinational pharmaceutical and biotechnology company, GlaxoSmithKline (GSK), has announced plans to shut its operations in Nigeria.
Owing to increased competition from local companies and imports from India and China, GSK Nigeria saw its half-year sales drop to N7.75 billion from N14.8bn in the same period a year ago.
GSK Nigeria, which disclosed its decision, yesterday, in its filing with the Nigerian Exchange Limited, signed by the Company Secretary, Frederick Ichekwai, added that its parent company, GSK Plc UK, had revealed its intent to cease commercialisation of its prescription medicines and vaccines through its Nigerian subsidiary.
“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,” it said.
GlaxoSmithKline Consumer Nigeria Plc was incorporated in Nigeria in 1971 and commenced business in 1972, under the name Beecham Limited.