GlaxoSmithKline came forth to drive into up-and-coming markets on Tuesday, by approving to purchase a 9.9 percent stake in South Korea's Dong-A Pharmaceuticals for 73.9 million pounds, which is approx. $114 million.
Up-and-coming markets are the new battlefield for the world's top drug manufacturers, as sales stall in Western markets.
Glaxo Chief Executive, Andrew Witty, has already signed a cord of contracts, so as to boost his company's marks in key emerging markets, that includes taking a similar minority asset in South African Aspen Pharmacare.
The new coalition will originally co-promote preferred Glaxo and Dong-A drugs, for use in primary care, but the corporations stated that extra synergies would be looked at.
Glaxo and Dong-A, which had sales the previous year of 414 million pounds, will share proceeds from the co-promoted products over pre-agreed baselines. A new trade unit will be formed within Dong-A, in order to supervise the association.
Christopher Weber, GSK’s President and Regional Director of Asia-Pacific stated that with Dong-A’s market-leading place and know-how in Korea, this coalition presents an important break for GSK to expand its marketable marks and construct operational scale in this fast-growing Asian marketplace, since it has a lot of potential and great returns are expected.