GlaxoSmithKline Consumer Nigeria Plc said it has concluded arrangements to shut down its operations in Nigeria.
The pharmaceutical company said GSK UK Group has informed GSK Consumer Nigeria of its strategic intent to cease commercialization of its prescription medicines and vaccines in Nigeria through the GSK local operating companies.
The company said on Thursday in a regulatory filing that it will transition to a third-party direct distribution model for its pharmaceutical products.
GSK has a portfolio of brands Sensodyne, Andrews , Voltaren, Panadol, Otrivin and Horlicks.
GSK said, “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.
“For the above reasons, and having, together with GSK UK, evaluated various other options, the Board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations.
“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 its Board is conscious that shareholders will have many questions, adding that it has been working assiduously with professional advisors to agree on next steps.
“We will be shortly submitting to the Securities and Exchange Commission a draft Scheme of Arrangement.
“If approved, (will) 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.”
The company generated a revenue of N25.38bn in 2022 but spent N18.45bn on operating costs.
In the first six months of 2023, GSK declared N3.7bn revenue but spent N2.4bn on operating cost and posted N184m profit.