GlaxoSmithKline's ($GSK) emerging markets march continues with today's news that the pharma giant has inked a deal to acquire China-based Nanjing MeiRui Pharma for $70 million. Ninety percent of the share capital of MeiRui will be purchased from Pagoda Pharmaceuticals, with the remaining 10 percent coming from Allergon. With the acquisition, GSK gains MeiRui's portfolio of urology and allergy products, including Prostat for benign prostatic hyperplasia and Sheniting for overactive bladder syndrome. The company also gets MeiRui's sales and marketing platform, which GSK will likely leverage to sell its prostate drug Avodart.
GSK has been one of the most aggressive pharmas to pursue emerging market pacts, inking deals in all corners of the globe as it attempts to move ahead of its rivals in up-and-coming markets. China, which is currently the third largest pharmaceutical market, is projected to become the second largest by 2015, and drugmakers are jumping at the chance to tap into fast-growing markets as drug sales stagnate in developed nations.
- see GSK's release on the deal
Big Pharma's Top 5 Emerging Market Deals: With pharmaceutical sales in major markets like the United States, Europe and Japan slowing, a number of big drugmakers have looked outside of traditional territories to emerging markets. Eastern Europe, Russia, South America, the Middle East and Asia have all become sought-after markets as Big Pharma begins its emerging markets land-grab. Report