A British multinational pharmaceutical giant, GlaxoSmithKline (GSK), has disclosed its intention to exit Nigeria after 5 decades of operation in the country.
The biotechnology company made the disclosure at the Nigerian Stock Exchange Limited,Thursday, through a document signed by the Secretary, Frederick Ichekwai.
According to Ichekwai, GSK Plc UK, had revealed its intent to cease commercialisation of its prescription medicines and vaccines through its Nigerian subsidiary, due to unfavourable market forces.
He said “In our published Q2 results we disclosed that the GSK UK Group has informed GlaxoSmithKline Consumer Nigeria PLC of its strategic intent to cease commercialisation 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.
“The Board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations”.
The multinational pharma company has also revealed its plans to adhere to the contract signed by all employees and shareholders in relocating the firm from Nigeria, assuring all affected persons of fair treatment.
“Today we are briefing our employees whom we will treat fairly, respectfully and with care, meeting all applicable legal and consultation requirements.
“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”, Ichekwai said.
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