Reuters reports that GlaxoSmithKline is negotiating a 5 percent stake in Indian generics maker Dr Reddy's Labs. Analysts see a match between the move and a stated Glaxo goal to build up its presence in emerging markets. They see another match in the big pharma's strategy of taking a minority position in partner companies.
The report follows by just one week the Indian company's profession that founders "had no intention" of pursuing any such deal.
As reported earlier, the pharma giant announced in June a deal with Dr. Reddy's to develop and market more than 100 products across emerging markets, excluding India. The alliance was said to combine Dr. Reddy's branded product portfolio with GSK's sales and marketing muscle.
Glaxo's emerging markets march has also included product acquisitions and licensing, partnerships and alliances reaching into sub-Saharan Africa, China, Singapore, Argentina, Chile, Egypt, Pakistan, among others.
- here's the report