Ranbaxy selling 50% JV stake to Lilly

Ranbaxy of India says that its board has approved a proposal to sell its50% stake in the Eli Lilly Ranbaxy joint venture, an Indian outlet to market drugs in the USA and elsewhere, to the US major. Although full financial details were not disclosed, the deal involves the sale by Ranbaxy of 7.2 million shares of 10 rupees nominal value for which Lilly will pay an undisclosed price.

A spokesman for Ranbaxy told reporters that the JV needed substantial investment to expand and, instead of putting more funds into the venture, such sums will be used for in-house activities at the Indian company. He added that the move will not affect Ranbaxy's other JVs with Lilly in the USA, Australia and some Asian companies.

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