The UK's largest pharma firm and the world's fourth-largest by revenue, GlaxoSmithKline, today said it had acquired a 9.9-per cent stake in S Korea's top phrmaceuticals and OTC maker Dong-A Pharmaceuticals Co, Ltd. for £73.9 million, as part of a broader marketing alliance.
GSK Korea reported sales of £225 million (KRW 434 bn) in 2009 and is currently ranked number five in the Korean pharmaceutical market.
Dong-A has a portfolio of proprietary and generic pharmaceutical products and leading consumer healthcare brands, which last year had total sales of £414 million.
Under the terms of the agreement, the S Korean firm will initially co-promote selected GSK and Dong-A pharmaceutical products for use in primary care on a profit-sharing basis from the sale of the co-promoted products.
A new business unit will be created within Dong-A to manage the collaboration.
Christophe Weber, senior vice president and regional director of Asia Pacific, GlaxoSmithKline said, ''This alliance presents a significant opportunity for GSK to extend its commercial footprint and build operational scale in this fast growing Asian market.''
Won-Bae Kim, president, Dong-A, said, ''This collaboration is expected to improve our market competitiveness in the fast changing domestic and global pharmaceutical markets. It will enable us to accelerate our transformation into a true global player taking advantage of GSK's excellent product pipeline as well as their global marketing/operational expertise and standards.''
The Korean pharmaceutical market (ethical, over-the-counter) has consistently enjoyed double-digit growth of 13.9 per cent CAGR from 2006to 08, and in 2008, was the 13th largest pharmaceutical market in the world. IMS suggests the market is forecast to grow by approximately 10 per cent CAGR through to 2012.