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news.GlaxoSmithKline (GSK) has agreed to acquire a 9.9% minority equity shareholding in Dong-A Pharmaceuticals, a pharmaceutical and OTC company in South Korea, for GBP73.9m.
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GSK and Dong-A said that the transaction is expected to initially co-promote selected GSK and Dong-A pharmaceutical OTC products for use in primary care. Additional synergies are expected to be explored to strengthen both companies’ commercial positions within the Korean pharmaceutical market.
GSK and Dong-A claimed that under the terms of the agreement the companies are expected to share profits generated from the co-promoted products above pre-agreed baselines. A new business unit is expected to be created within Dong-A to manage the collaboration.
Christophe Weber, senior vice president and regional director of Asia Pacific, GlaxoSmithKline said: “With Dong-A’s market position and expertise in Korea, this alliance presents an opportunity for GSK to extend its commercial footprint and build operational scale in this fast growing Asian market.”
Won-Bae Kim, president of Dong-A, said: “Together with GSK, we have built a win-win alliance. This collaboration is expected to improve our market competitiveness in the fast changing domestic and pharmaceutical markets.
“It will enable us to accelerate our transformation into a true player taking advantage of GSK’s product pipeline as well as their marketing/operational expertise and standards.”