Ranbaxy, one of India's largest drug makers and a dominant force in the generic drugs business, is spinning off its R&D unit that will develop new medicines. The move will allow the drugmaker to expand beyond the generic drug market, and will remove millions of dollars from Ranbaxy's annual expenses. It will also mean Ranbaxy can compete on a global scale by making more profitable, brand-name drugs. And Ranbaxy certainly has a leg up with it comes to R&D costs. Developing new drugs in India is much cheaper, as the country has a large, inexpensive pool of biotech talent.
Ranbaxy already has programs for an original anti-malarial drug and treatments for oncology, respiratory, metabolic and infectious diseases. Details on the new company's structure will be ironed out by the end of this year and it will be listed some time in 2008. The planned spinoff will have an annual budget of $20 million to $25 million.
Ranbaxy touts R&D abilities in new discovery pact. Report
Ranbaxy reportedly near $100M generics deal. Report
Ranbaxy buys new European manufacturing hub. Report
Ranbaxy acquires GSK generic business in Spain. Report