Dr Reddys signs Glaxo to give it a new pipeline

GSK Signed up with Dr Reddys for 100 drugs in 06/2009 ( no cash has changed hands)

GlaxoSmithKline (GSK) today signed an alliance with Dr Reddy’s Laboratories, an Indian generic drug maker, in its latest step towards building its business in emerging markets and copycat drugs.

The deal gives GSK access to Dr Reddy’s portfolio and future pipeline of more than 100 branded pharmaceuticals in areas including cardiovascular, diabetes and oncology. The first products are expected to reach the market in the second half of the year, with Mexico likely to be the first country.

The tie-up is chief executive, Andrew Witty’s latest move to expand in emerging markets and generic drugs, which can be sold as brands in poorer countries. The deal comes just six months after the drug giant signed an agreement with China’s Shenzhen Neptunus for flu vaccines and follows a collaboration with South Africa’s Aspen and last year’s purchase of Bristol-Myers Squibb’s mature business in Egypt.

Drug sales in emerging markets are expected to grow at a mid-teens percentage rate through 2013, against low single-digits for mature markets, according to IMS Health, a tracker of prescription drug data.