The Hindu : Business : Tatas to enter drug discovery business

Online edition of India's National Newspaper
Saturday, May 14, 2005

Business

Business

Tatas to enter drug discovery business

Staff Correspondent

Rallis to transfer knowledge services business to Tatas

STRATEGIC DECISION: The Managing Director of Rallis India, Venkat Sohoni, addressing a press conference in Mumbai on Friday. — Photo: Shashi Ashiwal

MUMBAI: The Tata Group has announced its entry into the drug discovery and contract research business by promoting Advinus Therapeutics, a new company that will be undertaking the business of drug discovery and pharmaceutical development services. Advinus is being formed by Rallis India transferring its knowledge services business including the research and development centre in Bangalore as a going concern with effect from April 1.

The proposed transfer will be for a consideration of Rs. 26 crores as per the valuation done by Ernst & Young. Rashmi Barbhaiya, a well-known scientist, will lead Advinus, which undertake drug discovery and drug development. Rallis will have a strategic equity stake in the new company at a later stage and will continue with the activities related with the agro-chemical developmental work, namely, field trials, formulation development and registration. Advinus will look at limited Phase I clinical trials, pre-clinical trials, candidate selection and drug discovery.

Addressing the media, V. S. Sohoni, Managing Director, Rallis India said, "What is being transferred is the knowledge services including toxicology business and the R&D centre at Pinnea to the Tata Group. The Rs. 26-crore payment is for the transfer of the knowledge services and includes contracts, assets, staff of 100 and future contracts to Advinus. The transfer will be consummated in the first quarter of the current year.''

Rallis has announced a net profit of Rs. 33.50 crores for 2004-05 against Rs. 26.20 crores in the previous year on gross sales of Rs. 610.53 crores (Rs. 545.80 crores). The company reported an operating profit of Rs. 38.20 crores against an operating loss of Rs. 46.66 crores in the previous year. The board has approved a dividend of 10 per cent after a three-year period and also payment of dividend to preferential shareholders who participated in the preferential issue of Rs. 88 crores earlier last year.

Printer friendly page
Send this article to Friends by E-Mail

Business