GSK to shut Bangladesh drug-making factory by 2018

Tuesday, 31 July 2018 00:00 - - {{hitsCtrl.values.hits}}

DHAKA (Reuters): GlaxoSmithKline will shut its drug manufacturing operations in Bangladesh by the end of this year and will continue with its healthcare business, the managing director of its local businesses said on Friday.

Globally, GSK’s pharmaceuticals business has seen sluggish growth in recent years. The company unveiled a new restructuring program to deliver annual cost savings of GBP 400 million by 2021.

Nakibur Rahman said the board of GSK Bangladesh Ltd. last Thursday decided to close the drug-making factory in Bangladesh.

He said GSK Bangladesh would continue with its profitable consumer healthcare business that produces items like Horlicks, Sensodyne and Glaxose-D.

“All of our medicines are substitutable with generic and therefore, patients should be able to access a range of suitable alternatives,” Nakibur said. He also said the company’s decision would impact about 1,000 employees. GSK Bangladesh will now seek shareholders’ nod for a final decision.

“GSK will run pharmaceuticals in our emerging markets region as an integrated operation, putting in place the right commercial structure in markets to deliver a sustainable growth ambition,” Nakibur said without elaborating further.

The State-run Investment Corporation of Bangladesh owns 12% stake in the company, while 6% of the shares are held by public and different institutions.