I guess GlaxoSmithKline
Glaxo paid around $675 million for rights to sell UCB's drugs, including the big ones: Keppra for the treatment of epilepsy, and allergy treatments Xyzal and Zyrtec. The sales of the products that Glaxo purchased were expected to bring in around $150 million last year. A purchase price of about 4.4 times sales is higher than the 3 times sales that Pfizer
While the move by Glaxo into emerging markets is a good one, it's not going to move the revenue needle that much until the countries become wealthy enough to pay for the drugs in large quantities.
In addition, investors looking for emerging-market exposure shouldn't fool themselves into thinking that they're getting a lot of that by investing in Glaxo, Pfizer, Sanofi-Aventis
Developing nations will offer some growth to pharmaceutical companies, but it would be better if they unpacked their bags and got back into the lab. Developing high-selling drugs is the only way they're going to return to past substantial growth.
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