Matrix Laboratories Ltd has informed BSE that the Management of the company has been authorized to explore strategic alternatives for Docpharma, including a possible divestiture of the Docpharma business.

In this regard the Company has issued following press release

The Company, a subsidiary of Mylan Inc. announced that its Board of Directors has authorized its management to pursue strategic alternatives up to and including the divestiture of its Docpharma subsidiary, a leading marketer and distributor of generic pharmaceuticals in Belgium, the Netherlands and Luxemburg (”Benelux”).

Shortly following the Company’s acquisition of Docpharma, the Company underwent significant activity including the acquisition of a 71.5% controlling interest by Mylan, a US-based generics pharmaceutical company. Since then, the Company has realigned its strategic focus with Mylan to yield greater value for shareholders. In light of Mylan?s acquisition of Merck Generics, the Company will further refocus its business to reflect the importance of strategic arrangements with Mylan in support of its enlarged global platform.

Robert J Coury, the Company’s Non-Executive Chairman stated, “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 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 organization that is compatible with its core competencies.”

Strategic alternatives for Docpharma, up to and including divestiture, remain subject to approval by the Company’s shareholders. The Company will provide further detail once it has reached any definitive agreement.