In what appears to be a global restructuring of its business
model, the company which produces prescription drugs and vaccines is set to
adopt a distributor-led model to supply the country, a similar approach adopted
in Nigeria in August.
GSK hinted that the operation at Nairobi’s Industrial area
plant will remain open under GSK’s stand-alone affiliate, Haleon. According to
a local news outlet in Kenya, this consumer healthcare venture deals in
products like Sensodyne and Panadol.
GSK in July spun off the consumer healthcare business and
listed it separately as Haleon in shake-up to focus on the lucrative
prescription drugs and vaccines business, which has brands like Augmentin,
Zentel and Ventolin.
“The production facility in Kenya is a Haleon facility, and
is not the subject of the update that GSK gave in Kenya this week,” GSK said.
“We announced that for our GSK business, we would move to a
direct distribution model. This means that instead of having a GSK commercial
operation in the country we will supply our medicines and vaccines through a
third party.”
The exit of GSK comes as the firm races to overhaul its
global business in shifts that led to the spin-off the consumer health unit.
GSK turned down a £50 billion bid from Unilever for the unit
at the end of last year, arguing that it undervalued the company.
The review of the Kenya operations comes nearly five years
after the pharmaceutical giant announced it was cutting back operations in
Africa.
It stopped marketing medicines to healthcare professionals
in 29 sub-Saharan African markets but continued running local operations in
Kenya and Nigeria while retaining representative offices in Cote d’Ivoire and
Ghana.
In Kenya, GSK has made a bigger impact with its malaria and
HIV/Aids drugs and antibiotics such as Augmentin and Panadol.
The pharma created the groundbreaking malaria vaccine,
Mosquirix, piloted in Kenya last year, aimed at taming deaths, especially among
children.
Its exit follows disappointing sales for many regional
multinational pharmaceutical companies in the face of competition from cheaper
generics from India and locally manufactured medicines.