Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksGlaxosmithkline Share News (GSK)

Share Price Information for Glaxosmithkline (GSK)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 1,640.00
Bid: 1,637.50
Ask: 1,638.00
Change: -10.50 (-0.64%)
Spread: 0.50 (0.031%)
Open: 1,650.50
High: 1,658.50
Low: 1,627.50
Prev. Close: 1,650.50
GSK Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Drugmaker GSK to invest $200 mln in African factories, R&D

Mon, 31st Mar 2014 10:00

* Up to 100 mln pounds for new drug manufacturing in Africa

* GSK looks at Rwanda, Ghana and Ethiopia for new factories

* Further investment in drug R&D focused on continent

By Ben Hirschler

March 31 (Reuters) - Drugmaker GlaxoSmithKline plansto invest up to 130 million pounds ($216 million) in Africa overthe next five years as it bets on the importance of thecontinent in driving long-term demand for medicine.

The decision reflects the pharmaceutical industry's growinginterest in Africa, given improved economic growth and risingdemand for treatments against chronic diseases that are becomingmore common among urban middle classes.

France's Sanofi has also highlighted Africa as apromising growth market.

Sub-Saharan Africa currently accounts for only around 500million pounds of GSK's annual sales, which totalled 26.5billion pounds in 2013, but the group sees potential forsignificantly greater sales in future as African economies grow.

The rise of non-communicable diseases (NCDs) like heart andlung disorders, diabetes and cancer is changing the market fordrugs in Africa and increasing demand for new products beyondtreatments for acute infections.

NCDs are expected to account for 46 percent of all deaths insub-Saharan Africa by 2030, up from 28 percent in 2008,according to the World Bank.

GSK Chief Executive Andrew Witty, who set out his firm'splans at a conference in Brussels on Monday, said up to 100million pounds of the new money would be used to expandmanufacturing in Nigeria and Kenya, and to build as many as fivenew factories.

GSK, which currently makes drugs in Kenya, Nigeria and SouthAfrica, is reviewing possible factory locations in countriesincluding Rwanda, Ghana and Ethiopia.

In addition, Britain's biggest drugmaker will invest 25million pounds to create the world's first open-access researchand development (R&D) laboratory for NCDs in Africa.

The overall investments will create at least 500 jobs - asubstantial increase on the 1,500 currently employed by GSK insub-Saharan Africa.

The R&D centre will allow GSK scientists to work withoutside researchers to investigate the specific needs of Africanpatients with chronic diseases by focusing on variations in thenature of certain illnesses on the continent.

An above-average number of Africans with high bloodpressure, for example, appear to be resistant to medicaltreatment and there is also a high prevalence of aggressivebreast cancer in younger women. The aim is to find new drugs toaddress the specific needs of such African patients.

Additional funding will also be funnelled into establishing25 academic chairs at African universities and increasingsupport for community health worker training.

GSK has been stepping up its exposure to many of the world'semerging markets in recent years by increasing investment inlocal supply lines and sales forces, striking deals, and buyingout minority shareholders in certain subsidiary businesses.

Last week it took full control of its consumer healthcareunit in Indonesia, after recently increasing its stake in localunits in India.

Witty has made emerging markets a key growth platform forGSK. He has stuck with the strategy despite recent problems inChina, where the company's sales have been hit by briberyallegations.

($1 = 0.6011 British Pounds) (Editing by Mark Potter)

More News
18 Sep 2023 09:40

LONDON BROKER RATINGS: Jefferies likes Energean; JPMorgan raises IDS

(Alliance News) - The following London-listed shares received analyst recommendations Monday morning:

Read more
18 Sep 2023 07:57

LONDON BRIEFING: Phoenix Group hails "impressive" first-half

(Alliance News) - Stocks in London are called lower on Monday, as investors focus on the week's upcoming central bank decisions.

Read more
18 Sep 2023 07:18

US FDA approves GSK treatment for myelofibrosis

(Sharecast News) - GSK announced on Monday that the US Food and Drug Administration (FDA) has granted approval for 'Ojjaara', or momelotinib, as a treatment for adults suffering from intermediate or high-risk myelofibrosis with anaemia, including cases of primary myelofibrosis or secondary myelofibrosis.

Read more
15 Sep 2023 21:52

GSK's Ojjaara approved in US for myelofibrosis patients with anaemia

(Alliance News) - GSK PLC on Friday said Ojjaara, also known as momelotinib, has been approved in the US and the "first and only" treatment indicated for myelofibrosis patients with anaemia.

Read more
11 Sep 2023 08:24

Japan accepts GSK's regulatory filing for momelotinib for blood cancer

(Alliance News) - GSK PLC on Monday reported regulatory progress for momelotinib, as Japan's Ministry of Health, Labour & Welfare accepted a review for the blood cancer-focused drug.

Read more
11 Sep 2023 07:54

LONDON BRIEFING: Restaurant Group sells Frankie & Benny's and Chiquito

(Alliance News) - Stocks in London are called higher on Monday, ahead of a busy week of interest rate decisions and economic data.

Read more
6 Sep 2023 09:32

LONDON BROKER RATINGS: Shore says 'buy' B&M; Peel Hunt likes Halfords

(Alliance News) - The following London-listed shares received analyst recommendations Wednesday morning:

Read more
4 Sep 2023 06:00

More UK babies to need hospital treatment over delay of GSK's RSV jab

(Alliance News) - The nation's top children's doctor has warned a delay on a new vaccine to combat respiratory syncytial virus, or RSV, will mean more babies and infants will need hospital treatment this winter.

Read more
1 Sep 2023 09:11

GSK antibody accepted for Japan review, Goldman Sachs reduces stake

(Alliance News) - GSK PLC on Friday said a new drug application for its monoclonal antibody mepolizumab has been accepted for review by the Japanese government.

Read more
1 Sep 2023 07:49

LONDON BRIEFING: Stocks seen higher; UK house prices continue to fall

(Alliance News) - Stocks in London are set to open higher on Friday as markets looked ahead to a data-heavy day.

Read more
1 Sep 2023 07:12

Japan considering GSK's Nucala drug for sinusitis treatment

(Sharecast News) - Japanese regulators are reviewing a new drug application for GSK's Nucala treatment to be used for the treatment of form of adult sinusitis, the biopharma giant announced on Friday.

Read more
23 Aug 2023 12:10

LONDON MARKET MIDDAY: Stocks rise but pound slumps on sub-par UK data

(Alliance News) - Stocks in Europe were on the up heading into Wednesday afternoon, with equity markets in a confident mood on the eve of the Jackson Hole central banking event, shaking off tepid economic data which hurt the pound and euro.

Read more
23 Aug 2023 08:17

GSK gets positive results from shingles trial of Shingrix in China

(Alliance News) - GSK PLC on Wednesday celebrated positive results from the first-ever efficacy trial of its preventative shingles treatment, Shingrix, in China.

Read more
23 Aug 2023 07:04

GSK reports positive results from shingles vaccine trials in China

(Sharecast News) - GSK reported significant positive findings from its first efficacy trial of the 'Shingrix' shingles vaccine in China on Wednesday.

Read more
22 Aug 2023 13:09

UK's Wood Group raises profit forecast on contract wins; shares rise

CFO David Kemp to retire

*

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.