Pharma

Fortis Healthcare Ltd's board on Tuesday approved demerger of the company's hospitals business into Manipal Hospital Enterprises Pvt Ltd, creating the largest provider of healthcare services in India by revenue. The Fortis Healthcare board of directors also gave nod to sale of a 20 per cent stake in SRL, its diagnostics arm, for Rs 720 crore. As part of the deal, for every 100 Fortis shares held, a shareholder will receive 10.83 shares in Manipal Hospitals. The combined company will be called Manipal Hospitals and will be listed on stock exchanges BSE and NSE, Fortis said. The businesses remaining with Fortis Healthcare will be an investment holding company with 36.6 per cent stake in SRL, the Gurgaon-based company said. The deal is is expected to be completed in approximately twelve months, it added.

Fortis said it approved the sale of a 20% stake in diagnostics chain SRL Ltd to Manipal Hospitals, providing Fortis with more than Rs 700 crore.

Following the announcement, shares of the company opened on a bullish note and surged 14.20 per cent to touch an early high of Rs 510 on the Bombay Stock Exchange (BSE).

The inspection was conducted on August 1 at the drug maker's formulation manufacturing unit-2 at Bachupally.

The group has now more than 150 approvals and has so far filed over 300 abbreviated new drug applications (ANDAs) since the commencement of filing process in FY2003-04, it added.

The reason for the recall is current Good Manufacturing Practise deviations, USFDA said.

Dr. Reddy's, did not however elaborate on the observations about its drug making facility in Andhra Pradesh.

Shares of Ajanta Pharma were trading 0.35 per cent higher at Rs 1,197.10 on the BSE.

The company has more than 140 approvals and has so far filed over 300 abbreviated new drug applications (ANDAs) since it commenced filings in 2003-04.

Bartering is a form of exchange that enables producers to reduce reliance on bank loans to finance the crop as they receive inputs such as agrochemicals from Bayer.

The lawsuit seeks damages to compensate the class of investors for a 'purported decline' in the company's share price.

Government owns majority stakes in 21 banks and merger of some of them is being considered for broader economic revival.

According to the US drug watchdog - USFDA - as many as 24,652 tablets are being recalled.

The government had in February slashed the maximum price of life-saving heart stent implants by up to 85 per cent.

The introduction of price controls marks the latest step by Prime Minister Narendra Modi's government to make drugs and medical devices more affordable.