* Glaxo gets access to more than 100 branded generic drugs
* Latest in a series of deals to expand in emerging markets
* Deal covers markets in Africa, Latam, Asia, but not India
* Launches seen in second half of 2009, Mexico first market (Adds analyst and executive comments, details on Mexico)
By Ben Hirschler
LONDON, June 15 (Reuters) - GlaxoSmithKline took another significant step in building its business in emerging markets on Monday by signing an alliance with Indian generic drugmaker Dr Reddy's Laboratories.
The move builds on a collaboration with South Africa's Aspen, last year's purchase of Bristol-Myers Squibb's mature business in Egypt and a deal inked just six days ago with China's Shenzhen Neptunus for flu vaccines.
Glaxo Chief Executive Andrew Witty has made growth in emerging markets a top priority for the world's second largest drugmaker and is expanding the company's reach into generic medicines, which can be sold as brands in poorer countries.
The new deal, effective immediately, gives Glaxo access to Dr Reddy's portfolio and future pipeline of more than 100 branded pharmaceuticals in areas including cardiovascular, diabetes, oncology, gastroenterology and pain management.
The first products are expected to reach the market in the second half of the year, with Mexico likely to be the first country, a Glaxo spokesman said.
Glaxo and Dr Reddy's have unspecified branded generic versions of cardiovascular and central nervous system drugs they are looking to launch in Mexico, he said.
Under the terms of the agreement, Dr Reddy's will manufacture the medicines, which will then be licensed and supplied by Glaxo in various countries in Africa, the Middle East, Latin America and Asia.
INDIA EXCLUDED
"This is another significant step forward in our strategy to grow and diversify GSK's business in emerging markets," said Abbas Hussain, Glaxo's president emerging markets.
"Growth in both population and economic prosperity is leading to increased demand for branded pharmaceuticals."
The alliance excludes India, which remains a priority market for Dr Reddy's along with the United States and Europe.
The agreement does not involve any upfront cash payment or equity stake. Revenues will be reported by Glaxo and shared with Dr Reddy's under terms that the companies are not disclosing.
Simon Mather, an industry analyst at WestLB, said the deal would help Glaxo build its exposure to emerging markets at a time when growth in Western markets was slowing, addressing an area where it has been weak compared to some European rivals.
Drug sales in emerging markets are expected to grow at a mid-teens percentage rate through 2013, against low single-digits for mature markets, according to IMS Health, the leading tracker of prescription drug data. (Editing by Greg Mahlich and Karen Foster)