Ranbaxy demerges drug discovery unit
Indian company Ranbaxy Laboratories is to demerge its New Drug Discovery Research (NDDR) Unit into a subsidiary, Ranbaxy Life Science Research Ltd (RLSRL), subject to requisite approvals.
Indian company Ranbaxy Laboratories is to demerge its New Drug Discovery Research (NDDR) Unit into a subsidiary, Ranbaxy Life Science Research Ltd (RLSRL), subject to requisite approvals.
Ranbaxy believes that this is a significant step in creating an independent pathway for NDDR with dedicated resources and an enhanced focus for long-term growth. The resulting operational freedom and flexibility will also help to open up new growth opportunities while providing a platform for increased collaboration.
The demerger, which is likely to be approved in the second half of 2008, will result in cost savings of approximately US$25m (Euro 18m) in the current year. All assets, liabilities, research personnel and pipeline related to the NDDR Unit will be transferred to RLSRL.
"The demerger of our NDDR Unit into a separate entity establishes a robust structure to carry out pathbreaking research at the cutting edge of modern medicine," said Malvinder Mohan Singh, ceo and md, Ranbaxy Laboratories. "It will also enable RLSRL to create intellectual property at a faster pace while positioning it for the future."