Smithkline To Promote, Market Iodex Products

SmithKline Beecham Consumer Healthcare (SBCH) will promote and market the over-the-counter (OTC) brand of GlaxoSmithKline Pharmaceuticals -- Iodex.

The company has informed the Bombay Stock Exchange that it will promote and market the Iodex range of brands from January 1, 2002.

Following the global merger of Glaxo with SBCH, GlaxoSmithKline, the merged entity, now intends to focus only on pharmaceutical business.

A spokesperson with GlaxoSmithKline said: "As an OTC product, Iodex will require different marketing and promotional efforts along with a big distribution network. In addition to chemists, Iodex even retails at grocers so the reach is wider."

However, he clarified that GlaxoSmithKline will continue to own the Iodex brand.

 

The agreement between the two sister companies is a fee-based one with GlaxoSmithKline to pay a marketing fee to SBCH, the spokesperson added. Crocin, the other OTC brand of GlaxoSmithKline, is already being marketed by SBCH for sometime now.

Iodex, currently with a market share of 31.81 per cent, is in the category of rubs and balms. It is a SmithKline Pharma brand -- one of the largest in its portfolio.

According to ORG figures, between June and August, Iodex was valued at Rs 9.1 crore and contributed a little over 18 per cent to the company's turnover. Last year, Iodex saw sales worth over Rs 40 crore.

SBCH's portfolio includes Horlicks, Maltova, Boost, Viva, Eno, Oral Care Aquafresh toothpaste and toothbrush. The company also plans to re-introduce Ribena, a fruit drink in the market.