GSK makes unsubstantiated claims about Horlicks: BIDA chief

The executive chairman of Bangladesh Investment Development Authority or BIDA does not see any impact of the British drugmaker GlaxoSmithKline’s decision to close down their pharmaceutical operations in Bangladesh.

Kazi M Aminul Islam says this is their strategic decision, and Bangladesh’s pharma sector is immune to that.

“They can make more money by selling Horlicks and other products. They can make a lot of unsubstantiated claims that when you drink Horlicks you will be taller, you will be bigger, you will be sharper and wiser and whatever.

“In pharmaceuticals they cannot make those unsubstantial claims,” he said on Tuesday.

GSK earlier announced that failure to introduce appropriate pharmaceutical products in Bangladesh has led to losses and the eventual decision to close down the operations in this emerging market.

But GSK will continue to market their consumer items such as Horlicks.

In 2008, health and nutrition claims in commercials produced for Bangladesh that Horlicks drinks and Maggi Noodles make children stronger were found false and banned by Britain's advertising watchdog.

The BIDA boss said he also spoke with the managing director of the company after their announcement of starting the process of closure.

“There will be no impact (on Bangladesh market),” he said, adding that GSK's production in the pharma sector is “is just 1 percent of our total production".

“They do not export from Bangladesh.”

Kazi Aminul said Bangladesh’s pharmaceutical sector is immune to such decision.

He said whatever the reason, globally GSK has decided to shrink.

He was speaking at the luncheon meeting of the American Chamber of Commerce (AmCham). Its President Md Nurul Islam raised the issue of GSK decision and asked about its impact on Bangladesh.

Managing Director of Incepta Pharmaceuticals Abdul Muktadir who was also a panelist said the GSK’s move was a “plain and simple commercial decision”.

“If they launch a branded product, it can be manufactured and copied in Bangladesh and there is a tremendous amount of pharmaceutical competition in Bangladesh,” he said.

“So they do not enjoy the kind of profitability in Bangladesh that they do elsewhere.”