GlaxoSmithKline has paid 64 billion rupees (£625 million) to increase its stake in its Indian pharmaceuticals subsidiary to 75%.
Plans were unveiled in December by the UK drugs major to up its holding in the unit from 50.7%, following an open offer to buy the extra shares at 3,100 rupees apiece. Final payment will be completed by March 20, GSK notes, adding that the subsidiary will remain publicly-listed.
David Redfern, GSK’s chief strategy officer, said the firm is “very pleased with the outcome of this transaction, which further increases our exposure to a strategically important market”. He added that it is “a significant vote of confidence in the future growth prospects of our pharmaceuticals business in India and underlines GSK’s long-standing commitment to the country”.
The Indian pharma unit was established in 1924 and has two manufacturing units – located at Nashik and Thane – as well as a clinical development centre in Bangalore. It employs over 3,500 people.
