Pharmaceutical powerhouse GlaxoSmithKline (GSK) has announced a transformation in its operational model, opting for a distributor-led model in Kenya as it officially leaves the country.

The British multinational has assured stakeholders that operational activities at the Nairobi Industrial area plant will be sustained under the banner of GSK’s stand-alone affiliate, Haleon.

The decision to separate the consumer healthcare business, completed in July, resulted in the creation of Haleon, which now operates independently from GSK.

GSK booth in Chicago. Image: courtesy (GSK)
GSK booth in Chicago. Image: courtesy (GSK)

This realignment allows GSK to sharpen its focus on core business areas, specifically prescription drugs and vaccines. The company takes pride in its renowned brands like Augmentin, Zentel, and Ventolin.

This decision marks a departure from the traditional direct commercial presence, with the company now relying on a third-party entity for the distribution of its medicines and vaccines in the region.

GSK’s shift in Kenya follows closely on the heels of its recent exit from Nigeria, the largest economy in Africa.

This move is part of a comprehensive effort to revamp the company’s global business structure, which notably includes the spin-off of its consumer health unit.

The British pharmaceutical giant officially bids farewell to Kenya, aligning its strategy with the successful distributor-centric model implemented in Nigeria just four months prior.

GSK has highlighted that the production facility in Kenya falls under the jurisdiction of Haleon. Importantly, it remains unaffected by the recent updates regarding GSK’s distribution model in the country.

This shift underscores GSK’s commitment to adapting its business structure to navigate the evolving landscape of the pharmaceutical industry, ensuring agility and resilience in the face of industry changes and increased competition from cheap drugs imported from China and India.