LONDON (AP) -- GlaxoSmithKline PLC says it has signed a strategic alliance with South Korea's Dong-A Pharmaceuticals Co., acquiring a 9.9 percent stake for 73.9 million pounds ($109.5 million).
The deal announced Tuesday extends Glaxo's presence in Asia, ramping up its expansion in emerging markets as pharmaceutical sales slow in developed Western markets.
Dong-A is the leading pharmaceutical and over-the-counter drug company in South Korea, a market forecast to grow by around 10 percent a year through 2012.
Glaxo -- the world's second largest drug maker -- says the deal will initially co-promote Glaxo and Dong-A pharmaceutical products, but other opportunities "to strengthen both companies' commercial positions within the Korean pharmaceutical market" will be explored.
