Wockhardt to demerge R&D division

Wockhardt Ltd has informed that the Company has considered in principal to demerge its Research & Development business into a separate entity. The new Company will house the new drug discovery programme and the innovative new technologies being developed by the R&D team. The Company will be a listed Company and is scheduled to come into effect from January 01, 2009.

Wockhardt chairman, Habil Khorakiwala said, "The R&D business has great potential and needs to be a focused entity for carrying out unrelenting research activities for the future. At Wockhardt we recognise this fundamental need and are re-structuring our R&D business to unlock true value for all our stakeholders. This will ease the Company to invite strategic investors interested in the R&D Business."

Wockhardt's board of directors have also in principal given their nod to raise Equity / Equity-linked securities to the tune of US $ 200 million to expand the domestic and international operations.