By Alex C
GlaxoSmithKline (GSK) has announced plans to invest over $200million in the African continent over the next five years, expanding manufacturing in Nigeria, Kenya, Rwanda, Ghana and Ethiopia.
With the locations for these new facilities borne out of the region’s attractive long-term growth potential, the company also announced investment of £25 million to create a Research and Development (R&D) facility for non-communicable diseases such as diabetes, cancers, cardiovascular diseases- a first for the African continent.
Sir Andrew Witty, chief executive officer, GSK said that the company’s intent to partner with governments of African countries is aimed at stimulating more research into chronic diseases and increase capacity by focusing on medicines supply and strengthening healthcare infrastructure.
GSK Nigeria for the year ended 31 December 2013 grew year on year (y/y) revenue by 15.31 percent to N29.18 billion ($175 million) from N25.30 billion ($152 million) in 2012, with the company’s new market penetration into Ghana helping boost revenues.
In January 2014, the controversy over GSK’s acquisition of its Nigerian subsidiary, GSK Nigeria Plc through a special arrangement was resolved with an option for GSK to buy shares of the company through the secondary market of the Nigerian Stock Exchange (NSE) to increase its stake.
The £25 million investment earmarked to create the first R&D lab for non-communicable diseases (NCDs) in Africa is built on the success of GSK’s Open Lab in Tres Cantos, Spain. This however gives independent researchers access to GSK facilities and resources to enable them advance their own research projects into diseases such as malaria, tuberculosis and leishmaniasis.
The new R&D facility will see GSK scientists collaborate with research centres across the African continent from its Stevenage R&D facility in the UK to conduct high quality epidemiological, genetic and interventional research to increase understanding of NCDs in Africa. An independent governing board of leading scientists and clinicians are expected to oversee the implementation of NCD research projects.
Industry experts believe this these insights into research on NCD in Africa will inform prevention, treatment strategies and enable researchers across academia and industry develop new medicines to address the exact needs of African patients.
Over the next five years, GSK will look to partner with a number of African countries to develop domestic manufacturing capacity and capability in Nigeria and Kenya. With plans for new facilities in countries like Rwanda, Ghana and Ethiopia subject to Government agreement, the facilities are expected to focus on transferring technology, skills and knowledge needed in order to enable the local manufacture of more complex products over time.
GSK is taking steps to improve its supply chain with the creation of regional supply hubs that will enable it reduce stock shortages and local supply partnerships. This development is to enable GSK products and medicines reach under-served rural communities within the African continent. In turn, this will help the continent’s dependency on imported medicines, improve supply, reduce production costs and transportation as well as lower prices for medicines.
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