Piramal Healthcare diversifies its business
Piramal Life Sciences Ltd (PLSL) and Piramal Healthcare Ltd (PHL)announced
that the boards of both the companies considered and approved the demerger scheme
of arrangement between PLSL and PHL. Also, Piramal Healthcare entered into financial
services sector by acquiring Indiareit Fund Advisors Pvt Ltd and Indiareit Investment
Management company for a consideration of Rs. 225 crore.
Under the proposed demerger scheme, the New Chemical Entity (NCE) research unit
of PLSL would be demerged into PHL with effect from April 1, 2011 which shall
be the appointed date under the demerger scheme. All assets and liabilities
of the NCE division will be transferred to PHL at book value.
Since, April 2007, when PLSL was demerged from PHL as an independent discovery
research company, it has made significant progress. The pipeline of R&D
programmes has increased from nine to 24 with nine additional programme moving
into phase I/II clinical trials and two additional programme moving into phase
II clinical trials. During this time, PLSL has also received Rs. 135 million
towards milestone payment from collaboration with Eli Lilly & Company.
The development projects from pipeline would need strong financial support going
forward. Hence the Board of PLSL has approved the demerger of NCE Research unit
into PHL. The herbal products division that markets neutraceutical products
to less regulated markets globally will continue to be with PLSL.
Through this demerger, PHL will have an access to an innovation platform of
PLSL through which it can build its Innovative discovery and commercialisation
business. PHL can also avail 200 per cent weighted average deduction both on
operational expense and capital expenditure on R&D work.