GSK announces a strategic alliance with Dr. Reddy's to further accelerate sales growth in emerging markets
Issued: Monday 15 June 2009, London UK
GlaxoSmithKline plc (GSK) today announced an agreement with Dr. Reddy's Laboratories Ltd (Dr. Reddy's) to develop and market selected products across an extensive number of emerging markets, excluding India.
Abbas Hussain, President Emerging Markets, GlaxoSmithKline said: "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 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."
GV Prasad, Vice Chairman & CEO, Dr. Reddy's 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."
Under the terms of the agreement, which is effective from today, GSK will gain exclusive 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 products will be manufactured by Dr. Reddy's, and licensed and supplied by GSK in various countries in Africa, the Middle East, Asia Pacific and Latin America. In certain markets, products will be co-marketed by the GSK and Dr. Reddy's. Under the terms of the agreement, revenues will be reported by GSK and shared with Dr. Reddy's as per the agreed terms.
GlaxoSmithKline - one of the world's leading research-based pharmaceutical and healthcare companies - is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For further information please visit www.gsk.com
About Dr. Reddy's
Established in 1984, Dr. Reddy's Laboratories (NYSE: RDY) is an emerging global pharmaceutical company. Dr. Reddy's fulfills its purpose of providing affordable and innovative medicines through three core businesses: Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products. Their products are marketed globally, with a focus on India, US, UK, Germany and Russia. www.drreddys.com .