Wellcome Scales Down Investment In South Africa

Wellcome is undergoing a major restructuring in South Africa, brought about by a number of business proposals over the last five years as well as an operating change in part of the pharmaceutical business, according to Colin Loubser, chief executive.

On a worldwide basis, Wellcome has entered into a joint venture for its over-the-counter range with Warner-Lambert (Marketletters passim). Negotiations for finalizing this arrangement in South Africa are taking place and are expected to be completed in December. Day-to-day management of Wellcome's OTC business will then be in the hands of Warner Wellcome, and Wellcome will share in the profits of this company.

The prescription business will remain with Wellcome (Pty) Ltd. However, with the reduction in size and the resultant increase in overheads for the remaining prescription business, it has been decided to close the factory and distribution parts of this business. A suitable third-party manufacturer is currently being sought to take on the distribution and manufacturing functions, leaving Wellcome free to concentrate on marketing. There will be inevitable staff retrenchments, but the company hopes to place as many people as possible.