GSK joins up with Dr Reddy's as part of drive into emerging markets

GlaxoSmithKline has taken another step in growing its business in emerging markets by signing an agreement with Indian generics drugmaker Dr Reddy's Laboratories.

GlaxoSmithKline has taken another step in growing its business in emerging markets by signing an agreement with Indian generics drugmaker Dr Reddy's Laboratories.

The move builds on a deal with Shenzhen Neptunus Interlong Bio-Technique in China for flu vaccines, a collaboration with South Africa's Aspen, and last year's acquisition of Bristol-Myers Squibb's mature business in Egypt.

The new deal gives GSK access to Dr Reddy's portfolio and future pipeline of more than 100 branded pharmaceuticals in areas including cardiovascular, diabetes, oncology, gastroenterology and pain management.

Under the terms of the agreement Dr Reddy's will manufacture the products in Africa, the Middle East, Asia Pacific and Latin America.

"This is another significant step forward in our strategy to grow and diversify GSK's business in emerging markets," said Abbas Hussain, GSK's president emerging markets.

"Growth in both population and economic prosperity is leading to increased demand for branded pharmaceuticals."

Revenues will be reported by GSK and shared with Dr Reddy's under agreed terms that have not been disclosed.

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