The Hindu Business Line : Nicholas Piramal to take up research unit revamp at board meet

Mumbai, Aug. 27 Nicholas Piramal India Ltd is set to take up a proposal for the restructuring its research division and de-merger of its New Chemical Entity unit at a special board meeting held for this purpose on August 31.

Currently, the company spends about 5 per cent of its turnover on research and research spends are set to be scaled up as more innovative research gets underway, an industry representative familiar with the development said. The company has about 13 molecules in the pipeline at different stages of research.

Recently, one of its cancer molecules has entered the second phase of clinical trial, where the molecule is tested on humans.

Demerger

NPIL’s focus is on therapeutic areas like cancer, anti-inflammation, diabetes and anti-infectives and the company’s strategy on developing prospective drug molecules is to commercialise it on its own steam or with a partner, as the case may be, the NPIL’s Chairman, Mr Ajay Piramal, had indicated in previous interactions with the media.

Sun Pharma is the only other drug company that has demerged its innovative research and listed in to the stock-exchange, in order to unlock value to its shareholders. The other example of innovative research-driven alliances is Dr Reddy’s Laboratories.

The company has not only cushioned its research and litigation cost through an alliance with ICICI Ventures, but also set up an integrated drug development company — Perlecan to undertake NCE development.

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