The Hindu Business Line : Matrix Labs may sell generics unit

Matrix Laboratories Ltd is planning to divest its subsidiary – Docpharma – a marketer and distributor of generic pharmaceuticals in Belgium, the Netherlands and Luxemburg.

The board of directors of the Hyderabad-based subsidiary of Mylan Inc has authorised its management to pursue strategic alternatives up to and including divesting of Docpharma, according to a release.

“After careful review and upon recommendation from its senior management team, Matrix has decided to explore strategic alternatives for Docpharma, including a potential sale. We believe our determination represents better growth in shareholder value for our shareholders,” said Mr Robert J. Coury, Non-Executive Chairman, Matrix.

Focus on API biz

Matrix would also continue to focus on its core Active Pharmaceutical Ingredients (APIs) business and finished dosage form development as well as on the continued growth of its anti-retroviral business.

Docpharma offers a strong platform for the marketing and distribution of generic pharmaceuticals in the Benelux countries. However, Matrix is of the opinion that Docpharma would be better situated in an organisation that is compatible with its core competencies.

Shortly following the acquisition of Docpharma, the company underwent significant activity including the acquisition of a 71.5 per cent controlling interest by Mylan.

Since then, it has realigned its strategic focus with Mylan to yield greater value for shareholders. In the light of Mylan’s acquisition of Merck Generics, the company will further refocus its business to reflect the importance of strategic arrangements with Mylan in support of its enlarged global platform.

NEW CEO

Matrix has announced the appointment of Mr Jagdish Viswanath Dore as Chief Executive Officer. Mr Rajiv Malik, the incumbent Managing Director and Chief Executive Officer, Matrix, would be relocated to the US in connection with his employment by the parent company, the release said.

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