GlaxoSmithKline yesterday stepped up its expansion into emerging markets, striking an alliance to sell more than 100 drugs of Dr Reddy's, the Indian generic pharmaceuticals maker, in Africa, the Middle East, the Asia Pacific and Latin America.

The move marks intensifying interest by pharmaceutical companies in expanding into generics as their medicines go off patent. With sales growth in the US and Europe flagging, drugs companies are competing to expand in emerging markets where selling large volumes at lower prices is more important.

The GSK deal, effective immediately, gives the company access to Dr Reddy's portfolio and future pipeline of more than 100 branded pharmaceuticals in areas such as cardiovascular, diabetes, oncology, gastroenterology and pain management.