Ranbaxy to list research arm soon

Ranbaxy Laboratories will list its research arm, Managing Director Malvinder Mohan Singh said on Thursday.

The company said that its board had approved a proposal to spin off the research arm to accelerate drug discovery, spur growth and facilitate collaboration.

"The demerger of our drug discovery and research operations will provide greater flexibility and impetus to our research arm, while unlocking value for the company and its shareholders," Singh said.

"The new entity created out of the demerger would be listed, details for which have been worked out."

With the demerger, Ranbaxy will join other firms Dr Reddy's Laboratories and Sun Pharma Ltd that have spun off their R&D operations into new entities. A number of drug firms, including Mumbai-based Nicholas Piramal, are in the process of doing the same.

Ranbaxy currently spends $20-25 million on drug development operations annually. The company has got a series of drugs under development, including anti-malarial and asthmatics.