GlaxoSmithKline plc (GSK) announced an agreement with Dr Reddy's Laboratories Ltd (Dr Reddy's) to develop and market selected products across an extensive number of emerging markets, excluding India.

Abbas Hussain, president emerging markets, GlaxoSmithKline said, "This is another significant step forward in our strategy to grow and diversify GSK's business in emerging markets. Growth in both population and economic prosperity is leading to increased demand for branded pharmaceuticals. This new alliance will combine Dr Reddy's portfolio of quality branded pharmaceuticals together with GSK's extensive sales and marketing capabilities. Together we will be able to deliver more medicines of value to more patients in these countries."

GV Prasad, vice chairman & CEO, Dr Reddy's said, "We are extremely pleased to combine forces with GSK, a global leader, to fully realise the potential of our strengths in technology, product development and manufacturing across a range of high growth emerging markets. We hope to take our purpose of providing affordable and innovative medicines to a much wider population through this partnership."

Under the terms of the agreement, which is already effective, GSK will gain exclusive access to Dr Reddy's rich and diverse portfolio and future pipeline of more than 100 branded pharmaceuticals in fast growing therapeutic segments such as cardiovascular, diabetes, oncology, gastroenterology and pain management.

The products will be manufactured by Dr Reddy's, and licensed and supplied by GSK in various countries in Africa, the Middle East, Asia Pacific and Latin America. In certain markets, products will be co-marketed by the GSK and Dr Reddy's. Under the terms of the agreement, revenues will be reported by GSK and shared with Dr Reddy's as per the agreed terms.