GSK signs transformational agreement with Aspen

The licensing collaboration between GlaxoSmithKline (GSK) and Aspen, and its joint venture partner, Strides Arcolab, signals a significant new strategy from GSK to accelerate sales growth in emerging markets.

Under the terms of the collaboration GSK gains access to a broad and diverse portfolio and future pipeline of branded pharmaceuticals on a license and supply basis in countries across emerging markets. Products will be competitively sourced by GSK through access to low-cost manufacturing from Aspen and its partners.

GSK will register the products in markets where they haven’t already been approved as well as assuming responsibility for distribution and commercialization, and expect to be able to commercialize the first group of products selected from 2010 onwards.

Aspen will continue to market these products in Sub-Saharan Africa and other countries. GSK will make limited up-front payments to Aspen to cover any additional regulatory work required to file the initially selected products in the appropriate countries. The majority of payments from GSK to Aspen will be made via a profit-sharing arrangement based on actual sales.

Andrew Witty, CEO of GSK, said: “Today’s announcement demonstrates our intention to catalyze GSK’s sales growth in emerging markets where growth in both population and economic prosperity is leading to increased demand for branded pharmaceuticals.”