On Tuesday, the British drug maker GlaxoSmithKline (GSK) announced that soon it will be buying 51% interest of Shenzhen Neptunus in the joint venture company. It has been revealed that after acquiring its Chinese partner GSK will become the sole owner of GSKNB.

GSK said that their motive behind the deal is to further expand its vaccines demand in China through the establishment of local vaccine manufacturing capability. GSKNB was formed on 2009 and had the responsibility of developing and manufacturing of seasonal and pandemic influenza vaccines for China, Hong Kong and Macau.

It has been revealed that when the GSKNB was formed GSK had 40% stake in the venture, which it raised to 49% by August. GSK has always kept its motive clear as it said earlier as well that it wishes to have majority control over the manufacturing of the drugs.

The step by GSK has been admired by many analysts. These analysts are of the view that the step will improve the position of the company in the vaccine market. An analyst at Matrix said that the China’s vaccine market is underdeveloped as its annual sales is just $1bn. Brian White, an analyst at Shore Capital further said, "We have previously highlighted the importance of GSK's vaccine franchise to rejuvenate the company's previously lacklustre position in China”.