GlaxoSmithKline PLC (GSK.LN) said Tuesday it has entered into a strategic alliance with Dong-A Pharmaceuticals Co., Ltd., a pharmaceutical and OTC Company in South Korea.


-As part of the transaction, GSK will acquire a 9.9% minority equity shareholding in Dong-A for GBP73.9 million (KRW 142.9 billion).

-Dong-A has a portfolio of proprietary and generic pharmaceutical products and leading consumer healthcare brands.

-Last year, Dong-A reported total sales of GBP414 million (KRW 801 billion).

-The alliance will initially co-promote selected GSK and Dong-A pharmaceutical products for use in primary care.

-Additional synergies will be explored to strengthen both companies' commercial positions within the Korean pharmaceutical market.

-Under the terms of the agreement the companies will share profits generated from the co-promoted products above pre-agreed baselines.

-A new business unit will be created within Dong-A to manage the collaboration.

-GlaxoSmithKline shares closed Monday at 1187.5 pence.

-By Iain Packham, Dow Jones Newswires; 44-20-7842-9269;