Peter Obi Reacts To Exit Of GlaxoSmithKline From Nigeria

Peter Obi Reacts To Exit Of GlaxoSmithKline From Nigeria

OpenLife Nigeria reports that Peter Obi, the Labour Party, LP, Presidential candidate in the February 25 elections has reacted to the exit of GlaxoSmithKline from Nigeria.

OpenLife Nigeria had reported that GlaxoSmithKline Consumer Nigeria Plc, a science-led global healthcare company with a special purpose to help people do more and feel better, during the week, announced plans to shut down its operations in Nigeria.

GlaxoSmithKline has a significant global presence with commercial operations in more than 150 countries, a network of 89 manufacturing sites, and large R&D centres in the UK, USA, Belgium and China.

In Nigeria, its commercial office is located in Ilupeju, Lagos.

The planned shut down was disclosed in a press statement issued on Thursday and filed with the Nigerian Exchange Limited. It was signed by the Company Secretary, Frederick Ichekwai.

The company, whose primary activities include marketing and distribution of consumer healthcare and pharmaceutical products, said that its parent company, GSK Plc UK, had revealed its intent to cease commercialisation of its prescription medicines and vaccines through its Nigerian subsidiary.

Part of the statement read, “In our published Q2 results we disclosed that the GSK UK Group has informed GlaxoSmithKline Consumer Nigeria PLC of its strategic intent to cease commercialization of its prescription medicines and vaccines in Nigeria through the GSK local operating companies and transition to a third-party direct distribution model for its pharmaceutical products.”

The company said it will be briefing its employees, whom it promised to “Treat fairly, respectfully and with care, meeting all applicable legal and consultation requirements.”

In responsibility to shareholders, the statement said that 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, a draft Scheme of Arrangement which may, if approved, see shareholders other than GSK UK, receive an accelerated cash distribution and return of capital.”

Meanwhile, GSK said it will appoint a third-party distributor in Nigeria for the supply of its consumer healthcare products.
GlaxoSmithKline Consumer Nigeria Plc was incorporated in 1971.

Reacting, Peter Obi said “I was saddened to hear that GlaxoSmithKline (GSK), is exiting Nigeria after 51 years of operation.

Their reason for leaving Nigeria is even more disheartening; they no longer perceive a prospect for the country as a business environment that would be anchored on productivity.

We have painfully come to that point in our nation’s journey where multinationals are leaving the country and the local ones are closing down. These are some of the consequences of the cumulative poor management of our economy. ”

It would however, be noted that 46.4 per cent of the shares of the Company are held by Setfirst Limited and Smithkline Beecham Limited (both incorporated in the United Kingdom); and 53.6 per cent by Nigerian shareholders.

The ultimate parent and ultimate controlling party is GlaxoSmithKline Plc, United Kingdom (GSK Plc UK). GSK Plc UK controls the Company through Setfirst Limited and Smithkline Beecham Limited.