SmithKline India (GSK) has decided to transfer its Iodex range of
products to SmithKline Beecham Consumer Healthcare (SKBCH), a GSK
subsidiary. Iodex is the market leader in the pain-balm segment,
with a market share of 70 per cent-plus.
officials said post-merger, the Iodex brand does not fit in the
broader portfolio, which focuses on prescription
drugs and vaccines. Last year, Glaxo India and SmithKline Beecham
Pharmaceutical India had merged and it was announced that the
focus of the merged entity, GSK, would give more focus on
prescription drugs and vaccines rather than over-the-counter (OTC)
officials said with this transfer of the Iodex brand, the entire
promotion, marketing and distribution will be carried out by SKBCH,
a leading player in the OTC segment. Iodex would be a right fit
in its portfolio.
officials said: We want to optimise the brands market reach
and profit with the help of SKBCH, which is a specialist in
consumer and OTC products marketing. SKBCH has a strong marketing
and distribution network in India, comprising over 1,600
wholesalers and direct coverage of over 4,00,000 retail outlets.
The Iodex brand was owned by SmithKline Beecham Plc, the British
parent, and had been licensed to SmithKline Beecham
Pharmaceuticals India. Iodex has a turnover of around Rs 100 crore,
and analysts say it could be valued at Rs 300 crore or
thereabouts. The pain-and-rub market in
India is currently valued in the Rs 350-400 crore range.
faces challenges from local brands like Amrutanjan, Tiger Balm
(locally manufactured by Elder Pharma), Zandu Balm and Sensur of
Glenmark. Glaxo Indias traditional areas of strength have been
the antibiotics segment and drugs, catering to respiratory