Matrix to foucs on Mylan, may sell Docpharma

Hyderabad-based pharmaceutical major, Matrix Laboratories, is
pursuing strategic alternatives for Docpharma, including a possible divestiture of the Docpharma business.

Docpharma, a leading marketer and distributor of generic pharmaceuticals in Belgium, the Netherlands and Luxemburg (Benelux countries), was acquired by Matrix in 2005.

Shortly following the acquisition of Docpharma, Matrix underwent significant activity including the acquisition of a 71.5% controlling interest by Mylan, a US-based generics pharmaceutical company. Since then, Matrix has realigned its strategic focus with Mylan to yield greater value for shareholders.

In light of Mylan's acquisition of Merck Generics, Matrix will further refocus its business to reflect the importance of strategic arrangements with Mylan in support of its enlarged global platform, the company stated in a press release issued to the BSE on Thursday.

Strategic alternatives for Docpharma, up to and including divestiture, is yet to be approved by the company's shareholders. Further details will be announced once the company has reached a definitive agreement, it added.

“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. As it has continued to realign itself to predominantly serve Mylan’s global generics business, Matrix will also continue to focus on its core active pharmaceutical ingredient (API) business and finished dosage form development as well as on the continued growth of its antiretroviral business. Docpharma offers a strong platform for the marketing and distribution of generic pharmaceuticals in the Benelux countries. We believe that Docpharma will be better situated in an organisation that is compatible with its core competencies,” said Robert J Coury, non-executive chairman of Matrix.