GSK Pharma shuts its consumer trade channel – Times of India

Mumbai: City-based GSK Pharma has shut its consumer trade channel (CTC) business, terminating the employment of around 200 people, to save costs. The employees, based across cities, were mid-level executives who worked with trade channels — that is, distributors and chemists, sources told TOI.
A GSK India spokesperson confirmed the development, saying, “As part of a strategic review of our business, over 150 colleagues from our CTC business have been impacted. In keeping with our values, we are supporting them with appropriate financial and outplacement support.” Sources say that the number of people laid off could be even higher, but the exact details could not be ascertained.
An industry expert explained that their role was taking orders from chemists which in today’s world can be done more effectively through the digital medium. They would ensure brands are present in the chemist and retail outlets.
GSK with power brands, including antibiotic Augmentin, pain and fever medication Calpol, and skin ointments Betnovate-N and Betnovate-C, employs over 5,000 people in India.
Last year in another restructuring move, the company sold its greenfield manufacturing facility at Vemgal (Karnataka) to Hyderabad-based Hetero Labs for around Rs 180 crore. In a major blow, the plant’s primary product, gastroenterology drug Zinetac, was caught up in worldwide recalls on carcinogen contamination. After discontinuation of Zinetac in 2020, the plant remained largely unutilised, till the company decided to sell it off at a fraction of the cost.
The company had proposed to invest Rs 1,000 crore in a state-of the-art facility at Vemgal to enhance its global pipeline in areas like respiratory drugs and vaccines in India. The factory was proposed to manufacture a range of medicines, and produce over eight billion tablets and one billion capsules a year.
Recently Sridhar Venkatesh, MD, GlaxoSmithKline Pharmaceuticals, said after the Q2 results, “GSK India has delivered another quarter of strong performance in general medicines and specialty business, gaining market share. We hope to build on this momentum in the coming quarters and continue to focus on our key brands to drive sustainable profitable growth. Vaccines business was impacted due to low vaccination rates, as the overall market for the self-pay segment in which we operate continues to decline.”

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