GlaxoSmithKline (GSK), a British pharmaceutical and biotechnology company has decided to exit Nigeria after 51 years of operation.
GSK Nigeria confirmed the impending exit in a statement that was expected to take place in the coming months.
The decision was reached after a board meeting and evaluation of options with GSK United Kingdom, UK.
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The company stated that there was no alternative but to cease operations in Nigeria.
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The move follows GSK’s previous concerns about difficulties in accessing currency, which have impacted its ability to maintain a consistent supply of medicines and vaccines in the market.
However, GSK Nigeria announced its plan to appoint third-party distributors for the supply of medicines and healthcare products in Nigeria.
In addition, the company has been informed by the Haleon Group about its intention to terminate the distribution agreement and appoint a third-party distributor for consumer healthcare products in Nigeria.
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GSK Nigeria assured that it will comply with legal requirements and prioritize the interests of its employees and shareholders.
Shareholders were advised to seek professional advice and exercise caution when dealing with the company’s shares until further notice.
GSK said in a statement by its spokesperson, Omongiade Ehighebolo:
“The board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations.
“The challenge in accessing currency is affecting our ability to maintain a consistent supply of medicines and vaccines in the market.
“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 is conscious that shareholders will have many questions; we have been working assiduously with our professional advisors to agree on the 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 Nigerian company GlaxoSmithKline Consumer Nigeria Plc was founded on June 23, 1971, and it started operations as Beecham Limited on July 1, 1972. In 1977, the company began trading on the Nigerian Stock Exchange.
