GSK nears deal for Chinese urology specialist

Sources are telling various newspapers that GSK is getting close to a deal for Nanjing MeiRui Pharma, probably valued in the 'low hundreds of millions of dollars.

GlaxoSmithKline ($GSK) is on the verge of a buyout that would give it an important foothold in China. Sources are telling various newspapers that GSK is getting close to a deal for Nanjing MeiRui Pharma, probably valued in the "low hundreds of millions of dollars." Not a big deal, to be sure, but it's yet another step for GSK into the fast-growing Chinese market.

As the Wall Street Journal notes, Nanjing MeiRui has a strong presence in the urology business in China, which could give GSK's prostate drug Avodart a boost. GSK could leverage the Chinese company's relationships with urologists to promote the drug. The Nanjing MeiRui deal would follow last year's joint-venture with Shenzhen Neptunus Interlong Bio-Technique, in which GSK and the Chinese company agreed to make and sell flu vaccines in that country.

China is fast becoming the most-targeted drug market in the world. Already the third-largest in terms of sales, the country is expected to vault into second place