Glenmark Pharmaceuticals Ltd (GPL) has decided to restructure its business into Specialty and Generics. The main objective is to build end to end integration, scale and capabilities in pursuing a Generic business and to build end to end global capabilities similar to a Big Pharma company on the Specialty side. The company is creating new wholly owned Generic subsidiary entity called Glenmark Generics Ltd (GGL).

GPL is coming out with an IPO during the first quarter of 2009 for future growth plans including acquisition. GPL is not planning to dilute more than 30 per cent of GGL capital through a fresh issue of shares. The resources will be use to further expand GGL's generic footprint globally through acquisitions, expand capacity for generics and focus on expansion into other niche segments.

Terrance Coughlin, currently president API and US Generics, will take over the role of the CEO while Glenn Saldanha will function as the chairman of GGL.

Speaking on this development, Glenn Saldanha, managing director and CEO of GPL, said, "Both our Speciality and Generics business have now grown immensely, posing a growth challenge of managing two large, but diverse businesses. The sheer size of the business now has its own set of management challenges. To address these challenges, strengthen our focus in R&D and accelerate our growth in the generics and API business, we are happy to announce a plan to reorganize our business by moving the generics and API businesses into a wholly owned subsidiary GGL. The new company will handle the development, manufacture and marketing of generic formulation and API businesses".

GGL will become a global, integrated generic and API leader by the year 2015, with more than 170 generics on the US market and more than 70 generic dossiers for EU markets. It will build presence in Japan, South Africa and other generic markets and build from ends in Japan and key EU markets in addition to North America. The biggest benefit of the reorganization is the advantage the organisation will get from giving both the generic and the brand business the separate focus they deserve, managing the scale that booth businesses have now achieved, Saldanha added.

GPL will continue to directly manage the novel R&D and branded formulation businesses of the Glenmark group including India, Brazil, Rest of Latin America (excluding Argentina), Russia/CIS, Africa and Asia. GPL will focus on branded business and retain all remaining assets, branded generic sales groups in India and overseas and all remaining R&D operations related to NCEs, biologics and formulation development for brands.

GGL will manage Glenmark's Goa plant for formulations, the three API plants at Ankleshwar, Kurkumbh and Mohol, GPL's sales units in the USA and UK and the Argentina oncology operations. In addition, a group from R&D focused on API and Formulation development will also move to the generics company. GPL will manage Baddi and Nasik plants along with other businesses.