Summary
GSK has been a market leader in India and international markets for quite some time!!!
While Dr. Reddy's is relatively new kid on the block compared to GSK.
What GSK is actually after is Dr. Reddy's manufacturing plants and API facilities.
GSK is looking to bring down is global production cost.
India being an established contract manufacturing center fits into GSK's global plan quite well.
Analysis
Global pharma with pressure on Cost cutting are trying every trick in the book.
Dr. Reddy's comes with everything a pharma company wants on a platter.
GSK will have little headache integrating Reddy's with it self and hence a potential target.
Indian Pharma landscape will see many more such moves in near future.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
