Ranbaxy to demerge drug discovery operation

The board of directors of Ranbaxy Laboratories, which met today, granted an in-principle approval to demerge the drug discovery research (DDR) operation.

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

"Ranbaxy has state-of-the-art research infrastructure and a highly skilled scientific talent pool. These strengths can be more effectively leveraged through an independent vehicle that better aligns assets with priorities to accelerate the company's drug discovery programmes. The resulting operational freedom and flexibility will also help to open up new growth opportunities while providing a platform for increased collaboration. The specific framework and other details of the de-merger will be finalised by the end of the year," the release added.