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GlaxoSmithKline looks to expand in emerging markets
by Matthew Dennis,
GlaxoSmithKline's head of emerging markets, Abbas Hussain, said on Thursday that the company believes it can "beat the market growth rate" and outgrow its rivals in emerging economies.
The executive outlined a strategy that includes the scaling up of branded generics, building extra vaccine business and pushing traditional patented drugs in emerging markets. Sales in these regions currently make up 13 percent of the company's revenue, and are growing at about 19 percent per year. Hussain said that GlaxoSmithKline's aim is to continue to beat the broader market growth rate, which is expected to be between 12 percent and 14 percent over the next five to 10 years.
Hussain also confirmed that the drugmaker will continue to pursue acquisitions and alliances in these regions. The executive commented that there are some "good companies and good opportunities," but added that some valuations were "unreasonable."
The company has already purchased assets from Bristol-Myers Squibb and UCB, and entered deals with Aspen Pharmacare andDr. Reddy's to sell drugs in emerging markets. The executive noted that further alliances along the same lines can be expected, adding, "it's a great way to go as you are sharing the risk, and it makes good financial sense."
Reference Articles
Glaxo plans to beat rivals in emerging markets - (MSN Money)
Glaxo hooked on high volume growth of drugs in the developing world - (The Telegraph)
GlaxoSmithKline to pursue more emerging market deals - exec (free preview) - (The Wall Street Journal)
Glaxo aims to outgrow rivals in emerging markets - (Yahoo!Finance)
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