Drugs giant GlaxoSmithKline (GSK) is pushing further into the Indian drug market by increasing its stake in its Bombay-listed Indian subsidiary from 51 per cent to 75 per cent through a £629m open offer. As demand in developed markets slows, management has targeted emerging markets, such as India, as an increasingly important source of future growth. This latest investment follows on from similar moves to increase GSK’s interest in Nigeria and its Indian consumer health business.
Actions have also been announced to curb GSK’s marketing activities and cut payments to doctors, which management will also hope will boost the group’s standing in emerging markets. The move follows this summer’s high-profile and on-going scandal in China, and a $3bn US fine for dodgy sales practices last year.
