LONDON - GlaxoSmithKline took another step in building its business in emerging markets on Monday by signing an alliance with Indian generic drugmaker Dr Reddy's Laboratories.
The move builds on an established collaboration with South Africa's Aspen and a deal inked just last week with China's Shenzhen Neptunus for flu vaccines.
Glaxo chief executive Andrew Witty has made growth in emerging markets a top priority for the world's second largest drugmaker by expanding the company's reach into generic medicines, which can be sold as brands in poorer countries.
The new deal, effective immediately, gives Glaxo 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.
The first products are expected to reach the market in the second half of the year, a Glaxo spokesman said.
Dr Reddy's will manufacture the medicines, which will then be licensed and supplied by Glaxo in various countries in Africa, the Middle East, Latin America and Asia, excluding India.
The agreement does not involve any cash payment or equity stake. Revenues will be reported by Glaxo and shared with Dr Reddy's under terms that the companies are not disclosing. (Reporting by Ben Hirschler; Editing by Greg Mahlich)