Ranbaxy to demerge drug discovery unit

Ranbaxy to demerge drug discovery unit

Ranbaxy Laboratories will demerge its new drug discovery research (NDDR) unit to a subsidiary, Ranbaxy Life Science Research, subject to requisite approvals.

According to a release issued by Ranbaxy to the BSE today, the company believes this is a significant step in creating an independent pathway for NDDR with dedicated resources and an enhanced focus for long-term growth.

"The demerger will result in cost savings of approximately $25 million in the current year for Ranbaxy," the release added.

Under the scheme of demerger, the shareholders of Ranbaxy will be entitled to receive one equity share of Re 1 each of Ranbaxy Life Science Research without any payment for every four equity shares of Rs 5 each held in Ranbaxy on the record date.

All assets, liabilities and research personnel associated with the NDDR unit will be transferred to Ranbaxy Life Science Research.