The management of GlaxoSmitheKline Consumer Nigeria Plc (GSK) says it plans to shut down its production facility in Agbara by the third quarter of 2021.
The plan is part of the leading pharmaceutical company’s restructuring efforts, which would see it focus on building “a more sustainable commercial business”.
More details about the move
A corporate disclosure issued to the Nigerian Stock Exchange, today, says the company’s Board of Directors approved the plan.
Reason for the planned closure – The document went further to disclose that the pharmaceutical company will transition to contract manufacturing. In other words, GSK will work with local contract manufacturers for the supply of the company’s drugs and other pharmaceutical products.
Expected outcome of the move – GSK’s restructured business model will enable it to transfer technical knowledge and build local production capacity. It will also enable the company to focus on the commercial aspect of its business, which basically involves “supporting access to GSK’s consumer health products, medicines, and vaccines.”
“FOLLOWING AN EXTENSIVE REVIEW OF ITS PRODUCT SUPPLY OPERATION, THE BOARD OF DIRECTORS HAS APPROVED A RESTRUCTURING OF GSK’S CURRENT OPERATING MODEL TO BETTER SERVE THE NIGERIAN PATIENTS AND CONSUMERS. THE RESTRUCTURING, WHICH WILL BE EFFECTIVE IN Q3 2021, INVOLVES WORKING WITH LOCAL CONTRACT MANUFACTURERS FOR THE SUPPLY OF GSK’S PRODUCTS, WHERE POSSIBLE. THIS WILL SUPPORT THE BUILDING OF LOCAL EXPERTISE, TRANSFER OF TECHNICAL KNOWLEDGE, AND IMPROVE LOCAL PRODUCTION CAPACITIES IN THE COUNTRY.”
No local contract manufacturer has been named
In the meantime, no local contract manufacturer has been named as a partner by the drug company. Instead, part of the statement issued to the NSE said “the identification of a suitable third party local manufacturer will be the subject of another announcement.”
Important clarifications – The company says the restructuring will affect its commitment to global health issues in Nigeria and elsewhere. It will also continue to be listed on the Nigerian Stock Exchange.
In the meantime, the Agbara plant remains functional
The company’s Agbara plant will remain functional until the third quarter of 2021, by which time a suitable local contract manufacturer would have been found.
