Report: GlaxoSmithKline in talks to buy India vaccine unit

India's Economic Times is reporting that GlaxoSmithKline Biologicals, a division of GSK, is in talks to acquire Hyderabad-based Biological E's vaccine division. Sources say executives from GSK's Belgium-based unit have visited the India company's manufacturing facility, though talks are preliminary. The India vaccine company makes both pediatric and adult vaccines and possess a sizeable share of India's vaccine market. Its lead products prevent Diphtheria and tetanus.

An unnamed analyst tells the Times that constraints at GSK's plant in Nashik, Maharashtra has caused the company to struggle with its vaccine supply. The BE vaccine unit buyout would give GSK additional capacity in the country. The analyst also observed that the BE's experience with pediatric vaccines would compliment GSK Biologicals' already huge business in that area.

- read the Economic Times report

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