The board of Piramal Healthcare has approved the spin-off of the New Chemical Entity (NCE) from Piramal Life Sciences, reports CNBC-TV18. The unit will then be merged with parent. According to the company filing with BSE, shareholders will be issued one fully paid up equity share of Rs 2 of parent Piramal Healthcare for every four shares of Rs 10 held of Piramal Life Sciences.
Investment in NCE research calls for sharper research focus, longer time horizon and higher risk appetite, said a press release. CNBC-TV18 had earlier reported about how Piramal Health is more poised to take the risks arising from the drug discovery business than Piramal Life Sciences.
This demerger is expected to be completed in six months, Ajay Piramal was quoted as saying.
Piramal hopes, ultimately, to re-absorb Piramal Life Sciences back into the company. According to CNBC-TV18, long-term strategies of the company include hiking capacity in active pharmaceutical ingredients segment and formulations business.
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