Glaxo ties up with Dr Reddy's for emerging markets
15 Jun 2009
GlaxoSmithKline has signed an alliance agreement with Indian generic drugmaker Dr Reddy's Laboratories in a bid to boost its business in emerging markets.
The two will partner in the development and marketing of select products - both generics and differentiated formulations - across emerging markets outside India, Dr Reddy's Laboratories said in a website announcement.
"Under the terms of the agreement, GSK will gain access to Dr Reddy's rich and diverse portfolio and future pipeline of more than 100 branded pharmaceuticals in fast growing therapeutic segments such as cardiovascular, diabetes, oncology, gastroenterology and pain management," the release said.
"We are extremely pleased to combine forces with GSK, a global leader, to fully realise the potential of our strengths in technology, product development and manufacturing across a range of high growth emerging markets. We hope to take our purpose of providing affordable and innovative medicines to a much wider population through this partnership," said GV Prasad, vice chairman and CEO of Dr Reddy's.
The products will be manufactured by Dr Reddy's and will be licensed and supplied to GSK in various emerging markets such as Africa, the Middle East, Latin America and Asia Pacific excluding India. Revenues will be reported by GSK and will be shared with Dr Reddy's as per agreed terms. In certain markets products will be co-marketed by Dr Reddy's and GSK.
"This is another significant step forward in our strategy to grow and diversify GSK's business in emerging markets. Growth in both population and economic prosperity is leading to increased demand for branded pharmaceuticals. This new alliance will combine Dr Reddy's portfolio of high quality branded pharmaceuticals together with GSK's extensive sales and marketing capabilities. Together we will be able to deliver more medicines of value to more patients in these countries," Abbas Hussain, president emerging markets, GlaxoSmithKline, added.
Dr Reddy's Laboratories is an emerging global pharmaceutical company providing affordable and innovative medicines through pharmaceutical services and active ingredients, global senerics and proprietary products. Its products are marketed globally, with a focus on India, the US, the UK, Germany and Russia.
GlaxoSmithKline, the world's second-largest drugmaker, is expanding globally through acquisitions, collaborations and marketing tie-ups.
It has a similar aranfement with South Africa's Aspen. Last year, the company acquired Bristol-Myers Squibb's mature business in Egypt and followed it up with a deal with China's Shenzhen Neptunus for flu vaccines.
