GSK bets on emerging markets with $1 billion plan to raise stake in India unit

Monday, December 16, 2013

MUMBAI (Reuters) – GlaxoSmithKline Plc (GSK) has decided to spend roughly $1 billion (612 million pounds) to raise its stake in its Indian pharmaceutical unit, betting on rising demand in emerging markets as sales in developed economies slow due to a wave of patent expirations.

With the latest India deal, GSK is set to spend close to $2 billion in roughly a year to increase its holdings in two listed Indian companies, its biggest incremental investment in any country in that period.

Emerging markets such as India and Brazil are an important plank of GSK Chief Executive Officer Andrew Witty’s growth strategy, as he grapples with slower uptake of the company’s products in the developed world.

Source: The West Australian (link opens in a new window)

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