Mumbai: Glenmark Pharmaceuticals is all set to reorganise its business into two separate units.

Glenmark Generics, the company’s wholly-owned arm would look after the company’s generic business, whereas innovative research initiatives and branded formulations unit will remain under the control of the parent company.

In the first quarter of the next fiscal year (2008-09), the company’s new entity, ‘Glenmark Generics’ will get listed separately on the Bombay Stock Exchange.

Mr. Glenn Saldanha, Chief Executive Officer and Managing Director of the company, said, “These two businesses have two separate focus and this move will allow us to create a structure to build on. The long term vision for the business would be a company like Novartis, which successfully runs side by side its innovative business and its generic business under its subsidiary Sandoz.”

The company didn’t give further details on the new listing procedure of its new unit.

However, Mr. Saldanha told that the company will dilute around 30 percent equity of its new entity ‘Glenmark Generics’ by issuing new shares.

The company’s generics unit will look after the growth, production and promotion of generic formulation and Active Pharmaceutical Ingredient businesses (API). The company’s generics unit will also inherit its Goa-based facility for formulations, the three Indian API plants, sales entities in the United States and UK and the Argentina oncology operations.

On the other hand, the parent company, GPL will handle the new research and branded formulation business sections of the Glenmark group that include Brazil, India, rest of Latin America (excluding Argentina), Russia/CIS, Asia and Africa.

“Along with branded generics, our front-ends in markets other than the US and Europe will eventually market our innovative products, as we have retained the marketing rights for these markets for all of our molecules,” said Mr Saldanha.

“It is difficult to believe that stand-alone discovery research companies can be sustainable. You need revenues generating pieces,” said Mr Saldanha.

Glenmark’s shares closed down 0.91% at Rs 486.45 on BSE on Wednesday.