Morepen Labs eyeing the multi-billion-dollar global market for new API molecules going off-patent in the next 5-6 years

The company’s net profit for Q3’FY2020-21 grew by 120 percent and that of 9M’FY2020-21 by 212 percent

PUNE: Morepen Laboratories Ltd is eyeing an all-new multi-billion dollar global API (Active Pharmaceutical Ingredients) market with the addition of new molecules in its bulk drugs portfolio. The focus areas of these new molecules include chronic and lifestyle diseases like anti-diabetic, anti-hypertensive, cholesterol reducers, and neuro-psychiatric. Global patent expiry for these new molecules is slated in the next 5-6 years. These new molecules are currently under development and would come into play in phases over the next 24 to 36 months.

This was disclosed by Mr. Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd., after the Q3’FY 2020-21 results’ board meeting here on Friday. The company is gearing fast to strengthen its portfolio with a strong pipeline of products in all the aforesaid focus areas, to be launched over the next three to four years in both domestic as well as international markets. The company is investing heavily in its R&D and in building new product blocks while simultaneously creating additional capacities to facilitate the production of these new molecules, he said.

Enthused by the Government’s push in the recent Union Budget for increased investment in R&D and other infrastructure development in the pharmaceutical and healthcare sector, the Baddi based API giant has chalked out a long term backward and forward integration program that would see a consistent rise in its sales and profitability on a year-on-year basis, Mr. Suri added.

Better margin realization has helped Morepen Labs in reporting a rise of 120 percent in its Net Profit after Tax (Consolidated) at Rs. 23.79 crore in Q3’FY 2020-21. Net profit for the nine months period ended December 31st, 2020 stood at Rs. 70.33 crore, registering a rise of 212 percent against the corresponding period of the previous financial year. The nine monthly Earning Per Share (EPS) stood at Rs.1.56 as against Rs.0.50 in the corresponding period of the previous fiscal.

The company’s Board has recently approved a mega expansion plan involving an outlay of Rs. 178 crore. The expansion plan has already been cleared by Himachal State Government under a single-window clearance scheme. It would add 2000 MT p.a. of APIs manufacturing capacity in addition to 3000 MT p.a. capacity already installed, and also generate additional employment for about 700 people. The company is awaiting environmental clearance by State Level Approval Committee for this expansion project. Additional capacities will facilitate the production of over 40 new and existing bulk drugs covering various therapeutic categories including anti-diabetic, anti-hypertensives, anti-allergic, anti-asthmatic, cholesterol reducers, anti-viral, anti-coagulants, anti-psychotic, and anti-depressants. The expanded capacity is likely to commence commercial production over the next three years. The company proposes to fund the expansion primarily through internal accruals.

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February 16, 2021