Healthcare: Local pharmaceutical firms beg Nana Addo to intervene after GSK terminates contract with them

The local companies feel that the decision will create a monopoly and expose the country to real risks, instability and possible arbitrary price rises.

Local pharmaceutical giants have appealed to the government to intervene and ensure that the United Kingdom (UK)-based pharmaceutical company, GlaxoSmithKline (GSK) Export Ltd, UK, rescinded its decision to terminate its distributorship contracts with them.

GSK has taken away the distribution of pharmaceuticals from the local pharmaceutical giants and has given it to Worldwide Health Ltd (WHL), a wholly Indian-owned company operating in Ghana.

The company said that the move was “an overall GSK strategy worldwide to simplify its distribution network.”

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But the local companies, namely Ernest Chemists Ltd, Unicom Chemists Ltd, Gokals Laborex and Parkenstein Ltd, feel that the decision will create a monopoly and expose the country to real risks, instability and possible arbitrary price rises.

“We received the termination of the distribution between GSK and us with shock and great disappointment, considering our very cordial and fruitful business relations. We duly reckon your right as the exporter and your rights under the distributorship agreement to unilaterally terminate the agreement, even if, without any express breach of the terms.

“However, we also believe that our business relation over the past 30 years has been guided by GSK’s principles of building trust, transparency and fairness. This makes the sudden, unilateral and unexplained decision to terminate the agreement, very worrying, disturbing and in bad taste,” the local companies stated in a joint letter to GSK.

 

The four companies have, therefore, pleaded with the President, Nana Addo Dankwa Akufo-Addo, the ministers of Health and Trade and Industry, as well as the Food and Drugs Authority to step in and ensure that the decision is reversed.

Meanwhile, the FDA has told the Daily Graphic that it has received the petition from the four local pharmaceutical companies and would give a response soon.

The local companies feel that the decision will create a monopoly and expose the country to real risks, instability and possible arbitrary price rises. Read Full Story