GSK in generic drugs pact with Dr Reddy’s

Toeing the Pfizer line, the GSK will supply over 100 branded generics from Dr Reddy’s to emerging markets.

The British drug giant GlaxoSmithKline plc has sealed an agreement with India’s Dr. Reddy’s Laboratories Ltd to develop and market over 100 branded generic products across a number of emerging markets, excluding India.

GlaxoSmithKline’s (GSK) alliance follows a similar alliances forged by Pfizer to source dozens of oral solid and injectable formulations from Auobindo and Claris Lifesciences of India a month ago.

Under the terms of the agreement, GSK will gain exclusive access to Dr. Reddy’s portfolio and future pipeline of more than 100 branded pharmaceuticals in therapeutic segments such as cardiovascular, diabetes, oncology, gastroenterology and pain management, according to a press release from GSK.

These branded generic products will be manufactured by Dr. Reddy’s, and licensed and supplied by GSK in various countries in Africa, the Middle East, Asia Pacific and Latin America. In certain markets, products will be co-marketed by the GSK and Dr. Reddy’s.

The deal underscores GSK new chief executive Andrew Witty latest move to build its business in emerging markets.

“This is another significant step forward in our strategy to grow and diversify GSK’s business in emerging markets. Growth in both population and economic prosperity is leading to increased demand for branded pharmaceuticals,’’ said Abbas Hussain, President Emerging Markets, GlaxoSmithKline.

Mr Hussian said this new alliance would combine Dr. Reddy’s portfolio of quality branded pharmaceuticals together with GSK’s extensive sales and marketing capabilities.

In May, GlaxoSmithKline agreed to acquire a 16% stake in South Africa’s Aspen Pharmacare Holdings Ltd. in a deal that expanded an already-existing partnership with the generic drugs maker.

Also, Glaxo agreed to a deal with Shenzhen Neptunus Interlong Bio-Technique Co. to make influenza vaccines for China, last week.

Revenues from the generics sales will be shared between GSK and Dr. Reddy’s as per the agreed terms.

Dr Reddy’s, on its part, express high optimism on the prospects of the new alliance.

“We are extremely pleased to combine forces with GSK, a global leader, to fully realise the potential of our strengths in technology, product development and manufacturing across a range of high growth emerging markets,’’ stated GV Prasad, vice chairman & CEO, Dr. Reddy’s.

Last month, Pfizer entered into a marketing pact with two Indian generic companies- .

the Hyderabad, South India-based Aurobindo Pharma Ltd and Claris Lifesciences Ltd of Ahmedabad.

Under the terms of the agreement, Pfizer has acquired rights to 55 solid oral dose products and 20 sterile injectable products for patients in more than 70 emerging market countries in Latin America, Eastern Europe, Asia, Africa and the Middle East. Related story: Pfizer gets rights to 55 generics

These medicines include antibiotics and anti-infectives, and cover a broad range of disease areas like cardiovascular and central nervous system disorders. Pfizer will commercialize the 60 products in phases tailoring its approach for different regions.

Established in 1984, Dr. Reddy’s Laboratories is an emerging global pharmaceutical company. Dr. Reddy’s has three core businesses: Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products. Their products are marketed globally, with a focus on India, US, UK, Germany and Russia.

GlaxoSmithKline is currently the second largest drug maker in the world. Headquartered in the UK and with operations based in the US, GSK has an estimated seven per cent of the world’s pharmaceutical market.

GSK produces medicines that treat six major disease areas – asthma, virus control, infections, mental health, diabetes and digestive conditions. In addition, we are a leader in the important area of vaccines and are developing new treatments for cancer.