Sunday, August 30, 2015

Glaxo investing more in India and Nigeria units

Drugmaker GlaxoSmith Kline said it will raise its stake in its consumer healthcare subsidiaries in India and Nigeria at a cost of more than $1 billion.

Glaxo investing more in India and Nigeria units

0 comments
GlaxoSmithKline, headquartered in Philadelphia, employs 4,000 people in Montgomery County.
GlaxoSmithKline, headquartered in Philadelphia, employs 4,000 people in Montgomery County.

Drugmaker GlaxoSmith Kline said it will raise its stake in its consumer healthcare subsidiaries in India and Nigeria at a cost of more than $1 billion.

Glaxo CEO Andrew Witty, who worked around the world before taking his current post, has often spoken of moving the company away from strictly selling "white pills in Western markets," and this move continues that trend.

Glaxo is also among the pharmaceutical companies that also view consumer sales as a way to diversify away from prescription medicines.

India is on track to surpass China as the world's most populous country. Nigeria has the largest population of any African nation, with a population of about 167 million, according to the United Nations.

The move will raise Glaxo's stake in the Indian subsidiary to the Indian legal limit of 75 percent.

Glaxo's consumer unit sells a product called Horlicks, which is a malted milk drink famous in the U.K. Glaxo is based in London and has multiple units in Pennsylvania and New Jersey.

“GSK Consumer Healthcare is a well established business in India and its leading product, Horlicks, is an iconic household brand," David Redfern, Glaxo's chief strategy officer, said in a statement. "This transaction represents a further step in GSK's strategy to invest in the world's fastest growing markets and, we believe, offers a liquidity opportunity at an attractive premium for existing shareholders."

0 comments
We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy:

Philly.com comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by Philly.com staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
 
comments powered by Disqus
About this blog
David Sell blogs about the region's pharmaceutical industry. Follow him on Facebook.

Portions of this blog may also be found in the Inquirer's Sunday Health Section.

Reach David at dsell@phillynews.com or 215-854-4506.

David Sell
Also on Philly.com:
letter icon Newsletter