GlaxoSmithKline (NYSE, LSE: GSK) announced it has entered into a strategic alliance with South Korean pharmaceutical and OTC company Dong-A Pharmaceuticals Co Ltd (Dong-A).
As part of the transaction, GSK will acquire a 9.9% stake in Dong-A for £73.9m.
Dong-A has a portfolio of proprietary and generic pharmaceutical products and consumer healthcare brands.
Last year Dong-A reported total sales of £414m.
Senior vice president & regional director of Asia Pacific, GlaxoSmithKline, Christophe Weber, said: "With Dong-A's market-leading position and expertise in Korea, this alliance presents a significant opportunity for GSK to extend its commercial footprint and build operational scale in this fast growing Asian market."
Mr Won-Bae Kim, president of Dong-A said: "It will enable us to accelerate our transformation into a true global player taking advantage of GSK's excellent product pipeline as well as their global marketing/operational expertise and standards."
The alliance will initially co-promote selected GSK and Dong-A pharmaceutical products for use in primary care.
Additional synergies will be explored to strengthen both companies' commercial positions within the Korean pharmaceutical market.
Under the terms of the agreement the companies will share profits generated from the co-promoted products, and a new business unit will be created within Dong-A to manage the collaboration.