LONDON, March 28 GlaxoSmithKline is
betting more on Indonesia by taking full control of its consumer
healthcare unit in the country, underscoring a drive by the
drugmaker to build up its presence in fast-growing emerging
The move, announced on Friday, mirrors the British company's
strategy in India, where it recently increased its stake in
GSK has paid 465 billion rupiahs ($40 million) to Sarasvati
Venture Capital for the 30 percent of the Indonesian consumer
healthcare operation it did not previously own, giving it 100
percent of a business that sells non-prescription products like
Panadol painkillers and Sensodyne toothpaste.
At the same time, GSK has sold its non-core local Insto eye
drops brand to Pharma Healthcare and agreed to divest its
factory at Bogor, Indonesia, to PT Pharma Healthcare for a
combined total of 133 billion rupiahs.
"This transaction is a further example of GSK focusing its
business in strategically important growth markets such as
Indonesia. It will also simplify operations in the Indonesian
business," David Redfern, GSK's chief strategy officer, said.
GSK's Indonesian consumer healthcare business has seen
significant growth over the last five years, with net sales
reaching close to 50 million pounds ($83 million) in 2013, up
from around 16 million in 2008.
The company is committed to emerging markets as a key growth
platform - based on rising demand for healthcare among growing
middle class populations - despite recent problems in China,
where sales have been hit by bribery allegations.
($1 = 11447.5000 Indonesian Rupiahs)
($1 = 0.6019 British Pounds)
(Reporting by Ben Hirschler. Editing by Jane Merriman)