GSK takes possession of Indonesian consumer healthcare unit
pharmafile | March 31, 2014 | News story | Manufacturing and Production, Sales and Marketing | GSK, Indonesia, bognor, emerging markets, insto, sarasvati
GlaxoSmithKline has acquired full ownership of its Indonesian consumer healthcare business in a transaction which also sees the company divesting a non-core brand and manufacturing facility in the country.
By taking full control of its consumer healthcare unit in the country, the London-based firm is underscoring its drive to build up its presence in fast-growing emerging markets.
GSK has paid 465 billion rupiahs ($40 million) to Sarasvati Venture Capital, for the remaining 30% of the Indonesian consumer healthcare operation that it did not previously own.
The transaction is staged across two phases: GSK has already completed the purchase of the shares and the divestment of the Insto brand, and will now see the Bogor manufacturing site transfer to PT Pharma Healthcare next year.
Insto eye drops are manufactured at the Bogor site and the brand is only sold in Indonesia. GSK will continue to sell the same formulation under the brand Eyemo across a number of other emerging markets, which are unaffected by this transaction.
David Redfern, GSK’s chief strategy officer, says: “This transaction is a further example of GSK focussing its business in strategically important growth markets such as Indonesia. It will also simplify operations in the Indonesian business.”
GSK’s Indonesian consumer healthcare unit, which sells brands such as pain drug Panadol, toothpaste Sensodyne and supplement Scotts, is an important emerging markets attribute for GSK.
The unit has seen good growth over the last five years, with net sales reaching close to £50 million in 2013, in comparison to around £16 million in 2008.
With increased geographical coverage and by using targeted product innovation serving a fast-expanding middle class, the future prospects for the business are viewed as being strong.
This move mirrors the British company’s strategy in India, where last month it took a further step into the county’s pharma market by increasing its stake in its subsidiary company there.
Ben Adams
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