GlaxoSmithKline is to license and supply more than 100 branded pharmaceuticals developed by Dr Reddy’s Laboratories in India.
The deal excludes the Subcontinent but includes developing markets such as Africa, the Middle East, Asia Pacific and Latin America.
Under the deal, Glaxo gets exclusive access to Dr Reddy’s portfolio and pipeline of cardiovascular, diabetes, oncology, gastroenterology and pain-management treatments.
Said Abbas Hussain, Glaxo`s president for emerging markets: “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.”
London-based Glaxo did not reveal terms of the deal, which is effective immediately. In some cases, products will be co-marketed by the two companies. Revenues will be reported by Glaxo, and shared with Dr Reddy’s.
Dr Reddy`s has exploited the booming market for generic versions of blockbuster drugs through reverse-engineering and selling them royalty-free in India and Russia.
By the early 1990s, the company was focusing on approval from drug regulators for their formulations and bulk-drug manufacturing plants in regulated markets such as the US and Europe.
Copyright Press Association 2009