A TV channel today said MPM Capital and OrbiMed, two of the largest global healthcare funds, were in advanced stages of negotiations with the company for a strategic stake sale.
"We will divest about 10 per cent stake. We are discussing with many private equity groups and so far nothing has been finalised," said Swati Piramal, director, Nicholas Piramal. PLSL rose to Rs 296.95 at the close of trading on the Bombay Stock Exchange (BSE) from yesterday's Rs 270.55.
New drug research is a capital-intensive activity, for which the company explores from time to time various strategic funding initiatives. However, it will not comment on any reports relating to potential strategic initiatives unless they have reached the definite stage, the company informed the stock exchanges today.
The demerged company has about 14 compounds at various stages of drug development, including four in clinical trials. Clinical development of drugs requires huge expenses, about $ 1 billion in developed countries.
