Japanese Resignation At Glaxo

Horishi Konishi, Nippon Glaxo's president, has resigned from the board of the UK-based company, but continues as president of the Japanese unit, Glaxo has announced. Mr Konishi and other members of his family own 50% of the share capital in Nippon Glaxo, with the Glaxo group owning the remaining stake.

The resignation is being interpreted as a sign that Glaxo is gearing up to take greater control of its Japanese subsidiary. Group policy is to have 100% stakes in subsidiary companies.

Glaxo's Japanese sales account for around 6% of total sales. Its antiulcerant Zantac (ranitidine) has not experienced sales growth in the past couple of years, point out industry analysts, but the Japanese drug market has been subject to government-implemented price cuts (Marketletters passim). Japan is the world's second largest pharmaceutical market.