TASMANIAN poppy growers' crops will be more part of a global market if Indian pharmaceutical company Sun Pharma buys GlaxoSmithKline Australia's opiates division.
That's according to general manager of the division Steve Morris, who yesterday said the business would better integrate growers' product in the global pharmaceutical market, including the United States.
Sun Pharma, India's largest drug company, was one of few allowed to import opiate products into the US, Mr Morris said.
He said the company hoped to increase demand for Tasmania's poppy crop.
All GlaxoSmithKline's permanent employees would be offered employment if the acquisition proceeded, he said.
He expected it would still require seasonal workers under new ownership.
The acquisition could lead to more jobs and growth in the opiate division as Sun Pharma intended to expand its range of medicines, Mr Morris said.
"At the moment, if we grow our business then that may mean more people, more facilities and more investment."
The company also planned to increase its market share for pain relieving medicines, he said.
GSK Australia's opiate division, which included a poppy straw pellet plant in Latrobe, would help Sun Pharma achieve this, Mr Morris said.
GlaxoSmithKline wanted to focus on its key products, including vaccines by selling the division, Mr Morris said.
"It recognises [in Sun Pharma] an owner with more pain-relieving drugs in its range as a better owner for the business."
Mr Morris said the companies expected to clear regulatory requirements within six months.
Staff responded positively to the news of the acquisition, he said.
The deal would also include GSK's factory in Port Fairy, Victoria.
Primary Industries Minister Jeremy Rockliff said the sale was a vote of confidence in the Australian and Tasmanian poppy industry.
"This is a positive investment in the future of the opiate industry, particularly in Tasmania," he said.
"We'll continue engage with both parties through their transition process."
