GSK buys B-MS' Pakistan unit for $36.5M

GlaxoSmithKline has continued its expansion into emerging markets, agreeing to buy the Pakistani operations of US drug major Bristol-Myers  Squibb for $36.5 million.

A few months ago (Marketletter October 27, 2008), the UK drug major  acquired the Egyptian mature products business of B-MS for $210.0  million, and also entered a drug commercialization deal with South  African firm Aspen. The deals reflect chief executive Andrew Witty's  intentions to diversify into new regions in order to weather difficult  market conditions and revenue losses on patent expiries.

According to GSK, emerging markets are forecast to account for 40% of  growth in the worldwide drug sector by 2020. The company is actively  seeking to unlock the potential of these regions and has already  established a new business model within the group and prioritized  investments in capacity and regulatory expertise to strengthen its  existing geographical footprint in these countries. Recently, US majors  Eli Lilly and Merck & Co have also started increasing their focus on  emerging markets (Marketletters passim).