GlaxoSmithKline PLC announced on May 1 a global reorganization designed to strengthen its position in emerging markets and consolidate its North American operations.

Led by incoming Chief Executive Andrew Witty, who replaces retiring CEO Jean-Pierre Garnier on May 22, a new management team will form an "emerging markets" unit focused on building business in China, Russia, Brazil, India and the Middle East. Leading the division will be Abbas Hussain, who joins Glaxo June 2 from rival Eli Lilly & Co.

GSK will also combine most Asian countries, including Japan and Australia but excluding China, into an Asia Pacific group to be run by Marc Dunoyer, who until now ran Glaxo's business in Japan.

"Making the changes required to develop our business for the next decade requires a rigorous and disciplined focus on corporate strategy," Witty said in a statement. "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."

Emerging markets in the Middle East, China, Russia and India contribute nearly 25 percent of today's pharmaceutical market growth, Witty said, and that rate is likely to accelerate in the future. Growth rates in once-neglected markets could someday triple that of Western nations, he said.

Currently, the company's structure focuses on key regions and its international unit deals with countries outside of that focus. Though the new emerging markets unit is not centralized, the regions it contains represent similar states of development in terms of economy, health care industry and rapid growth rate, according to Glaxo.

"It is essential that we have an operating structure that is dynamic and responsive to the opportunities in these markets," said Witty.