The Hindu Business Line : Glenmark re-organisation implemented

Glenmark Pharmaceuticals Ltd has implemented the re-organisation of its business into speciality and generics, a process that began in the third quarter of financial year 2007-08. As part of the process, Glenmark has transferred its generics and active pharmaceutical ingredients (API) businesses to its subsidiary, Glenmark Generics Ltd (GGL).

GGL is guided to generate $ 180 million in net sales in financial year2008 and $ 255 million in FY 09, Glenmark said in its announcement to the BSE.

Mr Terrance Coughlin, Glenmark’s erstwhile President - API and US Generics, Glenmark, has been appointed Chief Executive Officer of GGL and Mr Glenn Saldanha will function as Chairman.

Mr Pushpinder Bindra also comes on board as Chief Operating Officer, the company said.

GGL is slated to get listed in the first quarter of 2008-09, the company management had said when the strategic reorientation was announced last year. In a statement, CEO and Managing Director, Mr Saldanha said: “If Glenmark’s recent growth was divided in phases, the period 2003-07 is the first phase of growth where the company transformed from an India-centric branded generics player into a global, researched based, integrated pharma company in manufacturing and marketing. Here, begins the second phase, where the company aims to become a global end-to-end specialty company with capability to research, develop and launch its own differentiated branded products. On the generics side of its business, GGL aims to be a global integrated generic and API leader.”

GGL will handle the development, manufacture and distribution of generic formulation and API businesses. The parent company, Glenmark Pharmaceuticals Ltd will continue to directly manage the novel research, biologics and branded formulation businesses of the Glenmark group including India, Brazil, rest of Latin America (excluding Argentina), Russia/CIS, Africa and Asia, the note said.

The generics business will inherit Glenmark’s Goa plant for formulations, the three API plants in India, sales units in the US and UK and the Argentina oncology operations. In addition, a group from research focused on API and Formulation Development will also move to the generics company, it added. The branded business will remain in Glenmark Pharmaceuticals and retain all remaining assets, branded sales groups in India and overseas and all remaining research operations related to NCEs, biologics and formulation development for brands.

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