Merck India to sell off life sciences unit

According to The Economic Times in India, Merck, the Indian subsidiary of Merck KGaA, Germany, is to sell its life science and analytics businesses to Merck Specialities, its wholly-owned subsidiary in India.

While few details on the sale are available, it is purported that the company may be transferring a range of speciality chemicals under the life science division, including products and process chemicals that are used in the cosmetics, health and nutrition industries. It is also expected to sell its reagents and diagnostics product divisions to Merck Specialities, but retain its bulk drug business under the life sciences division.

'Currently, the proposal contains various options. A clarity on this will emerge only when the board discusses the proposal and takes a decision,' a senior company executive said. The board is due to meet on Friday (6 January).

The move, part of a company-wide restructuring programme, is expected to significantly reduce the operational scope of Merck India unless, according to The Economic Times, Merck KgaA, which holds a 51% stake in Merck India, decides to bring in all its new pharma products to India through the company.

Merck India operates in numerous therapeutic segments, including antibiotics, anti-malarials, cardiologicals and dermatologicals. Its centre of operations, the Merck Development Centre r&d unit, Taloja Mumbai, focuses on process research and development of bulk drugs and intermediates. Its life science division has a laboratory business, life science solutions, bioscience products and processes, ionic liquids and customised products and services under it. Its turnover, which stands at Rs 390 crore (Euro 72m), is expected to fall below Rs 250 crore (Euro 46m) after the sell off.