GSK increases India stake
pharmafile | March 11, 2014 | News story | Manufacturing and Production, Sales and Marketing | FDA, GSK, India, Nashik, OTC, Thane, bangalore
GlaxoSmithKline has taken a further step into the Indian pharma market by increasing its stake in its subsidiary company there, GlaxoSmithKline Pharmaceuticals Limited.
The pharma group which has had a presence in India since 1924, has paid £625 million to buy more than 20.6 million shares in the company via a voluntary open offer which ran from 18 February to 5 March.
This boosts GSK’s stake in its India subsidiary, which will remain publicly-listed, from 50.7% to 75 per cent.
GSK has two manufacturing units in India, located at Nashik and Thane, plus a clinical development centre in Bangalore. The Nashik plant makes formulations while bulk drugs and active pharmaceutical ingredients are manufactured at Thane.
“We are very pleased with the outcome of this transaction, which further increases our exposure to a strategically important market,” said GSK’s chief strategy officer David Redfern.
“It is a significant vote of confidence in the future growth prospects of our pharmaceuticals business in India and underlines GSK’s long-standing commitment to the country,” he added.
GSK’s final payment for shares will be completed on or before 20 March 2014.
Given the size of its population, India has huge potential for western pharma companies, but there have been well-publicised fears about how well made, and safely exported, medicines are there.
Earlier this year the US Food and Drug Administration announced it would put more inspectors on the ground in India.
The country’s pharma industry already supplies 40% of OTC and generic prescription drugs consumed in the US, but Indian drug plants such as Ranbaxy’s have had significant problems.
GlaxoSmithKline Pharmaceuticals Limited employs 3,500 staff and its prescription medicines portfolio covers anti-infectives, dermatology, gynaecology, diabetes, oncology, cardiovascular disease and respiratory diseases.
It also offers vaccines to prevent hepatitis A, hepatitis B, influenza, chickenpox, diphtheria, pertussis, tetanus, rotavirus, cervical cancer and streptococcus pneumonia.
Adam Hill
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