GlaxoSmithKline (GSK) Announces Exit from Nigeria After More Than 50 Years of Operations

British multinational pharmaceutical and biotechnology company, GlaxoSmithKline (GSK), has revealed its strategic intent to withdraw from the Nigerian market after operating in the country for more than 50 years. The decision includes ceasing the commercialization of prescription medicines and vaccines in Nigeria through its local operating companies and transitioning to a third-party direct distribution model for pharmaceutical products.

In addition to its exit, the company stated that “the Haleon Group, a distribution partner, has also expressed its intention to terminate the distribution agreement and appoint a third-party distributor for consumer healthcare products in Nigeria.”

“The Board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations,” GSK Nigeria said in an official statement signed by its company secretary, Frederick Ichekwai.

“Today we are briefing our employees whom we will treat fairly, respectfully and with care, meeting all applicable legal and consultation requirements,” the company said.

The company said its board is conscious that shareholders will have many questions; “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.”

“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,” GSK said. It added, “Shareholders are advised to seek professional advice and continue to exercise caution when dealing in the company’s shares until a further announcement is made.”

GlaxoSmithKline Consumer Nigeria Plc, originally known as Beecham Limited, was officially incorporated in Nigeria on June 23, 1971, and commenced its business operations on July 1, 1972. The company’s headquarters is situated at 1 Industrial Avenue, Ilupeju, Lagos.

A significant milestone in the company’s history was achieved when it got listed on the Nigerian Stock Exchange in 1977. This move further strengthened its position in the Nigerian market and showcased its commitment to growth and transparency.

To bolster its presence in the country and cater to the growing demands of its consumers, GlaxoSmithKline Consumer Nigeria Plc established an ultra-modern drinks factory in Agbara Industrial Estate, Ogun State, in 1982. Over time, this factory underwent expansions and upgrades to include cutting-edge facilities for manufacturing Oral Healthcare (OHC) and Wellness products, reflecting the company’s dedication to meeting the diverse needs of its customers.

Continuously striving for excellence, GlaxoSmithKline Consumer Nigeria Plc maintains a proactive approach to facility updates, ensuring it keeps pace with the ever-evolving market landscape and the increasing expectations of its consumers.

The company’s unwavering commitment to continuous improvement is a testament to its dedication to providing high-quality products and services to its customers in Nigeria. GlaxoSmithKline Consumer Nigeria Plc remains focused on delivering innovation and contributing to the health and well-being of the community it serves.