Morepen shareholders approve new unit to house medical device business

Morepen Laboratories on Wednesday said its shareholders have approved to shift its medical devices business into a newly incorporated wholly-owned subsidiary.

The new technology focused company -- Morepen Devices Ltd -- will be able to raise capital to fund its growth and make investment on innovation, research, capacity expansion and promotion of its products.

The company shareholders have given their approval for the creation of the new unit on September 28 during the course of the 36th annual general meeting.

The transfer of the business would happen as per terms of the business transfer agreement to be signed between both the companies, Morepen Laboratories said in a statement.

"The Indian POC market is expected to touch USD 16 billion by 2025 and we want to be the No 1 POC player in India with a very large part of our manufacturing being ?Made in India?, Medical Devices Business CEO Anubhav Suri noted.

The global point of care (POC) market is expected to cross USD 51 billion by 2025 and Morepen Devices is rightly placed to grab this opportunity by focusing on backward integration and cost leadership, he added.

The company's POC medical devices business marketed under the brand 'Dr. Morepen'.

"Given the scale we are looking to achieve, we will also explore bringing in fresh capital that makes it imperative to have a separate entity to undertake this huge initiative. It will also unlock the value of the medical devices business segment of the company," Morepen Laboratories Chairman and Managing Director Sushil Suri stated.

The proposed segregation will give clarity to the working teams, trade, customers and other stakeholders, the company said.

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Morepen produces active pharmaceutical ingredients, formulations and over-the-counter products.