Wockhardt to demerge R&D business

 Wockhardt Ltd today said that it had considered in principal to demerge its research and development business into a separate entity, in order to attract strategic investments in its pharmaceutical research.

The new company will house the new drug discovery programme and the innovative new technologies being developed by the R&D team. The new company, which is scheduled to come into effect from 1 January 2009, will be listed on the exchanges

"The R&D business has great potential and needs to be a focused entity for carrying out unrelenting research activities for the future," said. Wockhardt chairman, Habil Khorakiwala.

 "At Wockhardt we recognise this fundamental need and are re-structuring our R&D business to unlock true value for all our stakeholders. This will ease the company to invite strategic investors interested in the R&D Business."

Wockhardt's board of directors have also in principal given their approval to raise equity or  equity-linked securities up to $200 million to expand the domestic and international operations.