GlaxoSmithKline has placed many of its eggs in the emerging market basket, and today Abbas Hussain, the company's head of emerging markets, outlined exactly what the company hopes to get out of that bet. "Emerging markets today are roughly worth £50 billion ($81 billion). By 2015 this should double and by 2020 you are looking at emerging markets in size being equivalent to the U.S. market and the major five in Europe," Hussain tells Reuters. Emerging market prescription drug sales are forecasted to grow up to 15 percent over the next decade, compared with just 1 to 3 percent in more developed markets like the U.S. and Europe. And GSK wants to make sure it grabs the biggest slice of that pie.
GSK plans to attack the emerging markets in three areas. The company will try to increase sales of branded generics in those markets, pursue additional vaccine business and drive sales of branded drugs in the developing world. Capturing the generic market will be the key to the company's success--most of the potential growth will come from cheap generic drugs, not pricey branded meds. Vaccines also have huge growth potential. In addition to Asia, Latin America, the Middle East and Africa, GSK will be looking to Japan, where new approvals of existing drugs have opened up a large market.
- check out this article from Reuters