Ranbaxy In Bid To Buy Out Specialty

Ranbaxy Laboratories Ltd is in talks with Specialty Laboratories Inc of the US to buy out its stake in Speciality Ranbaxy Ltd (SRL), a 50:50 joint venture.

According to sources, the American company has expressed its intention to pull out from the venture and the two partners are in negotiation to this effect. Ranbaxy as well as Speciality Laboratories own 6.52 million shares in the company.

SRL is a research-based clinical reference laboratory which develops and provides incisive diagnostic, prognostic, and monitoring services. It has clocked a turnover of Rs 30 crore during 2000-01.

In the current financial year, it plans to grow at a faster rate than the 25 per cent expected by the industry. The company has over 1,000 products in its portfolio and caters to almost all segments of the market. SRL is the single largest source of specialised medical testing facility in South East Asia.

According to sources, the American partner's pull-out decision has been prompted by the vast differences between the Indian and the US markets. "Besides, it is doing very well there," sources said.

SRL functionaries added that the company's dependence on the US company is minimal and it is capable of running on its own. "SRL has adapted the standards of Speciality Laboratories and is self-sufficient in all matters," the sources added.

Operating through 500 collection centres all over the country, SRL has accreditation from NABL, a government body. It has two labs in the country, one in Mumbai and the other in Bangalore. It is setting up two more labs, one each at Mohali and Delhi. The SRL Lab in Mumbai has got the Gold Standard, the only laboratory in the country to receive it.

Specialty Laboratories began operations in 1977 in the fields of immunology and rheumatology and quickly gained a reputation for leadership in the development of new and reliable assays.

Applying the same rigorous standards to other clinical disciplines, Specialty Laboratories expanded into a full-service reference laboratory meeting the medical testing needs of its diverse clientele.