Ranbaxy Labs wants to buy out SRL
By Praveen Chandran | 14 Feb 2002
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Mumbai: The domestic pharma major Ranbaxy Laboratories (RLL) is in talks with Speciality Laboratory, US, to buy out the entire equity in Speciality Ranbaxy (SRL), a 50:50 joint venture (JV) between Ranbaxy and Speciality Laboratories.
Ranbaxy has already informed its US partner about its intention to take over the company and talks are on to thrash out a price for the equity buyout. Senior officials of Speciality Ranbaxy said as per the JV agreement, Ranbaxy has the option to use the takeover code, in case the company wants to increase the stake.
According to them, SRLs research data-base, the reference laboratory based in Mumbai and the satellite lab located in Bangalore are of strategic importance for RLL which seeks to consolidate its position as a research intensive company specialising in new drug-delivery systems and development of new molecules.
The SRL laboratory is also well equipped to diagnose critical diseases across the country providing physicians vital data for proceeding with the therapy. Speciality Laboratory has 50 per cent equity in SRL through its outfit based in Singapore Speciality (Asia). The SRL-promoted clinical reference lab is the only one of its type in the country for advanced diagnostic testing of new molecules and processes developing. The SRL officials said the company is planning to expand its medical-testing network by setting up satellite laboratories across the country.
The officials said the company is among the first to bring in standardised testing facilities into the country, about six years ago, through its SRL laboratories. While the venture already spans 200 cities through its 500 collection centres, SRL is now embarking on setting up satellite laboratories to provide cost-effective diagnostic services to people.
As per the current plan SRL will set up six more laboratories in 12 months time. The name and other details for setting up these satellite bases will be decided later. SRL has already tied up with Blue Dart to ensure collection of samples within 48 hours, in a worst-case scenario, from remote cities.
SRLs clinical trials division has serviced the requirements of drug companies for phase III clinical trials, sources said. These include SmithKline Beecham, Pfizer, Aventis, Novartis, Wockhardt, Quintiles and Virtual Central Lab.
Ranbaxy has already informed its US partner about its intention to take over the company and talks are on to thrash out a price for the equity buyout. Senior officials of Speciality Ranbaxy said as per the JV agreement, Ranbaxy has the option to use the takeover code, in case the company wants to increase the stake.According to them, SRLs research data-base, the reference laboratory based in Mumbai and the satellite lab located in Bangalore are of strategic importance for RLL which seeks to consolidate its position as a research intensive company specialising in new drug-delivery systems and development of new molecules.
The SRL laboratory is also well equipped to diagnose critical diseases across the country providing physicians vital data for proceeding with the therapy. Speciality Laboratory has 50 per cent equity in SRL through its outfit based in Singapore Speciality (Asia). The SRL-promoted clinical reference lab is the only one of its type in the country for advanced diagnostic testing of new molecules and processes developing. The SRL officials said the company is planning to expand its medical-testing network by setting up satellite laboratories across the country.
The officials said the company is among the first to bring in standardised testing facilities into the country, about six years ago, through its SRL laboratories. While the venture already spans 200 cities through its 500 collection centres, SRL is now embarking on setting up satellite laboratories to provide cost-effective diagnostic services to people.
As per the current plan SRL will set up six more laboratories in 12 months time. The name and other details for setting up these satellite bases will be decided later. SRL has already tied up with Blue Dart to ensure collection of samples within 48 hours, in a worst-case scenario, from remote cities.
SRLs clinical trials division has serviced the requirements of drug companies for phase III clinical trials, sources said. These include SmithKline Beecham, Pfizer, Aventis, Novartis, Wockhardt, Quintiles and Virtual Central Lab.
