New Glaxo chief targets emerging markets

By Ben Hirschler

LONDON (Reuters) - GlaxoSmithKline (GSK.L) will make emerging markets a priority for future growth by creating a new region targeting such countries, the company's incoming chief executive Andrew Witty said on Wednesday.

It will also look for new business opportunities in these high-growth areas -- a move which could include partnerships or bolt-on acquisitions.

Witty, who takes over at the head of world's biggest drugmaker by sales next month, said emerging markets would increase in importance as a driver for the business and a change in operational structures was needed to reflect this.

"Emerging markets, such as Brazil, Russia, India, China and the Middle East, are significant growth drivers of the future," he said in a statement.

"They are already contributing close to 25 percent of today's market growth and are forecast to grow even faster in the future, around triple the rate of western countries."

Abbas Hussain will join Glaxo from Eli Lilly and Co (LLY.N) to head up the new emerging markets division on June 2, while Russell Greig -- current head of international pharmaceuticals -- will move to a new role in research and development.

A new Asia Pacific region, including Japan and Australia, will also be created and Glaxo is realigning markets in North America by combining the United States, Canadian and Puerto Rican businesses. There will be new operational areas in Europe.

"A key element of this new team's remit will be to proactively seek new business opportunities to expand our global reach and drive sales growth," Witty added.