GlaxoSmithKline shuts down operation, await SEC’s decision on shareholders’ money

GlaxoSmithKline Consumer Nigeria Plc, the makers and distributors of Panadol in Nigeria has decided to close down its operations in the country and will present a scheme on shareholders’ money to the Securities and Exchange Commission (SEC), the capital market regulator.

The company said it will await the decision of the market regulator on the return of its shareholders’ money.

GSK Nigeria’s exit from the corporate arena owes to the decision of its parent body, GSK UK Group to stop in the coming months, its commercialisation arrangement through which its prescription medicines and vaccines are distributed In Nigeria with the local subsidiary.

GSK UK is ditching its Nigerian subsidiary which recorded N184 million profit in the half-year 2023 results for a Third-party distributor in Nigeria to distribute its pharmaceutical products which include Sensodyne, Andrews, Voltaren, Panadol, Otrivin, and Horlicks.

The exit plan was contained in the company’s second-quarter 2023 results and its filing to the NGX on Thursday last week.

The filing disclosed that 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, and noted that it has together with the GSK UK, concluded that there is no alternative but to cease operations.