Monday, June 18, 2007

Nicholas Piramal may hive off research arm

Pharmaceuticals major Nicholas Piramal India is exploring options to increase its funding towards research and development and plans to hive off its R&D activities into a separate company to launch the first new drug by 2010.

Nicholas Piramal, one of the highest R&D investors among the Indian pharma companies, had spent about Rs 130 crore in 2006-07 in R&D, an increase of about 63 per cent over the previous year.

However, though the company had earlier planned to invest about 7 per cent of its turnover in R&D, the actual spend was 5 per cent. This was due to the financial burden by the acquisition of the Morepath facility of Pfizer in 2006, Dr Ajay Piramal, chairman, said.

While none of the global generic drug research companies has hived off its R&D into a separate new company, three Indian companies hived off R&D in the recent past, in three unique different models.

Read more in The Business Standard article.

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