Ranbaxy to form separate R&D company

NEW DELHI, India Ranbaxy Laboratories will branch off the research and development of its new chemical entities into a separate company, according to The Economic Times.

The company is doing this because they want to get around the downside of making substantial investments with no guaranteed success as compared to the upside of successful commercialization of new drugs.

The company plans on completing the branch off by the end of this year or in early 2008.