Glaxo plans to beat rivals in emerging markets
December 10, 2009
GlaxoSmithKline PLC said it plans to outpace its rivals in the race to emerging markets as revenue from traditional western pharmaceutical markets continues to slow, according to the Associated Press. At an investor briefing, Abbas Hussein, London-based Glaxo''s head of emerging markets, said that the company will pursue acquisitions and alliances in the region. Hussein said that Glaxo is focusing on a combined pool of branded generics, vaccines and traditional patented medicines to beef up its exposure to emerging markets. Drug companies are battling to win a large piece of the pie as they look for substitute revenue in the face of increased competition for patented drugs in the United States and Western Europe. Drug sales in emerging markets are expected to double by 2015 from the current 50 billion pounds ($81 billion) thanks to a number of factors including a high birth rate and a swiftly increasing middle class. Glaxo expects operating margins in the region to remain at current levels of around 35 percent of sales.