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TSKF To Enter Consumer Health Sector In China

This article was originally published in PharmAsia News

Executive Summary

GlaxoSmithKline has mapped out its global strategy to increase investment in the consumer healthcare sector. In line with the direction, GSK's China joint venture TSKF marketed its first dental health product Sensodyne toothpaste in the country late 2008 (PharmAsia News, Oct. 13, 2008). TSKF said that the move represented a strategic expansion from merely an OTC business to consumer health; focus and investment in the core OTC market will continue. The company recently launched a new headache package for its top OTC earner Fenbid to extend the brand. Capturing a quarter of China's analgesics market, Fenbid contributed RMB 500 million ($73 million) to TSKF's total revenue of RMB 1.6 billion in 2008. (Click here for more - Chinese language)

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Tianjin Smith Kline & French Lab, which has been focusing on the OTC business for 21 years in China, marked its entry into the country's healthcare product business last month by launching parent company GlaxoSmithKline's Sensodyne toothpaste. GSK's oral health and health food sectors contribute 27 percent each to its total revenue. As the pharmaceutical giant's China joint venture, TSKF will fully operate the local consumer health business and introduce other items including health food in the near feature. TSKF notes that with the domestic market emerging, the time is right to promote such products. However, it will still concentrate on the OTC business during the next five years even as it increases investments in other sectors. (Click here for more - Chinese Language)

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