GlaxoSmithKline OTC sale puts two plants on the block
pharmafile | April 19, 2011 | News story | Manufacturing and Production | GSK, US, pharma manufacturing
GlaxoSmithKline’s decision to sell off a swathe of over-the-counter medicines means that a manufacturing facility in Memphis, Tennessee, has been offered up for sale, along with another plant in Aiken, South Carolina.
Two other US locations involved in the manufacture of consumer healthcare products for GSK – at New Jersey (Clifton) and Missouri (St. Louis) – have been retained.
GSK said last week that the block of US and European products earmarked for divestment – which includes the weight-loss treatment Alli (orlistat), gastrointestinal product Zantac (ranitidine) and painkiller Solpadeine – had sales of around £500 million a year.
The company said it lacked critical mass in some product categories and the brands would do better in the hands of a company with a greater OTC focus.
The Tennessee plant manufactures a range of OTC brands like BC and Goody’s brand painkillers, lip care product Chap-Et, dental brands like Polident and Poli-Grip and Stanback headache powders, according to GSK. Production will continue until a buyer is found, it said.
The Memphis facility was originally owned by SmithKline Beecham ahead of the merger with Glaxo in 2000 and underwent a $5 million refurbishment a couple of years ago, with the construction of a dedicated manufacturing area to house new and upgraded production and packaging equipment.
That renovation has also been accompanied by a progressive downsizing in the workforce. In 2008 the plant employed almost 400 staff, but now staff numbers are put at around 250.
Meanwhile, the Aiken facility employs around 210 people and makes Alli and a number of other brands due to be sold off, including gastrointestinal Tagamet (cimetidine), Beano for bloating and flatulence and the sleeping aid Nytol.
Aiken also makes some products that are not up for sale – notably Nicorette Lozenges – and production of these will be transferred to other sites in the GSK manufacturing network.
Phil Taylor
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