Iodex goes to SmithKline Healthcare

Mumbai: Glaxo 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.

GSK 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) products.

The 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.

The 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.

Iodex 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 ailments.