Morepen Laboratories, a Rs.550 crore plus New Delhi based pharma major, has posted strong growth in net profit during the third quarter ended December 2017. Its net profit went up by 107 per cent to Rs.9.67 crore from Rs.4.68 crore in the corresponding period of last year. Its net sales remained almost same at Rs.141.59 crore as against Rs.139.03 crore, a growth of 1.8 per cent. EPS worked out to Rs.0.21 as compared to Rs.0.09 in the last period.
Its domestic sales improved by 24.8 per cent to Rs.103.29 crore. However, its exports declined to Rs.36.58 crore. The company successfully reduced its interest cost to Rs.0.90 crore from Rs.1.29 crore and depreciation provision to Rs.7.60 crore from Rs.8.42 crore. Its other expenditure also declined to Rs.8.43 crore from Rs.10.89 crore.
In the bulk drugs category, Montelukast recorded highest growth of 25 per cent in its sales numbers at Rs.22.37 crore followed by Atorvastatin, which registered a handsome growth of 23 per cent in Q3 FY 2017-18 sales at Rs.15.82 crore vis-a-vis corresponding quarter in the previous fiscal. The overall API business sales remained stable at around Rs.80 crore in Q3 FY 2017-18 over Q3 last year. The home diagnostic category did extremely well with an overall growth of 53 per cent in Q3 sales in FY 2017-18 at around Rs.28 crore. Within the home diagnostic category, blood pressure monitors’ sales went up by 99 per cent and that of blood glucose monitors by 61 per cent in Q3 FY 2017-18. The formulations segment registered a revenue drop of five per cent in Q3 FY 2017-18 compared to corresponding quarter in the previous fiscal.
Sushil Suri, chairman and managing director, said, “During the quarter, the focus was on high value drugs, cost reduction and improving margins, The growth in Montelukast and Atorvastatin business in Q3 FY 2017-18 has helped the API business to make up for fall in sales revenues recorded by other products in this category. We are working on consolidation of our product portfolio so as to remain focused on high value APIs and also expand self health brand Dr. Morepen which is consistently registering phenomenal growth across all the product segments.”
In the nine months ended December 31, 2017, the company has reported a rise of 38 per cent in its net profit at Rs.22 crore on net sales of Rs.397 crore. The domestic sales revenue during the nine-month period grew by around 16 per cent at Rs.261.24 crore, however, the exports turnover was lower at Rs.135.63 crore. EBIDTA in the 9M FY 2017-18 stood at Rs.49.14 crore, Interest cost came down by 45 per cent at Rs.3.50 crore and depreciation expense was lower by 6 per cent at Rs.23.63 crore.
The overall bulk drugs sales remained flat in the nine-month period at Rs.244 crore, but the home diagnostic category’s sales grew by 36 per cent at Rs.78.63 crore. Within the home diagnostic category, sales of blood glucose monitors went up by 45 per cent at Rs.48.13 crore and that of blood pressure monitors by 86 per cent at Rs.16.64 crore. The formulations segment registered a revenue drop of 14 per cent at Rs.72.49 crore.
During Q3 FY 2017-18, Morepen Labs achieved a major breakthrough as the United States Food and Drug Administration (USFDA) cleared its anti-asthma bulk drug Montelukast Sodium for sale in the US market. This development has provided Morepenan entry into the Rs.. 2000 crore (Approx. $300 million) US market for Montelukast sodium. The first commercial orders for the bulk drug are expected in Q2 of FY 2018-19. The company also entered into a tie-up with Vésale Pharma International of Belgium to strengthen its position in the Rs.1,000 crore probiotics market in India. An agreement to this effect between the two pharma biggies was officially signed in the august presence of the King and the Queen of Belgium who were recently on their State visit to the Republic of India.
Morepen is engaged in the manufacturing and sale of APIs/bulk drugs, home diagnostics,formulations and OTC products. The company’s state-of-the-art manufacturing facility at Baddi (Himachal Pradesh) comprises a scientifically integrated complex of 10 plants, each with a specific product profile.
Morepen markets over 100 branded formulations under six major therapeutic segments in the domestic market. It has WHO GMP facilities for manufacturing of formulations. In home - diagnostics business, Morepen has a formidable presence in blood glucose monitors and blood pressure monitors, in the domestic markets. The company’s OTC brands are being promoted under its wholly owned subsidiary Dr. Morepen Ltd. Dr. Morepen’s famous OTC product line, including Burnol, Lemolate, Sat-Isabgol, Pain-X and others, has a significant presence in the domestic market.
The company’s wholly owned subsidiary-Dr. Morepen Ltd. is setting up a first of its kind chain of healthcare centres in India by the name of Dr. Morepen NOW to offer ECP Therapy to target consumers in India. The move is part of the company’s “Nation on Wellness (NOW)” drive, which envisions providing non-invasive means to treat cardiovascular diseases and diseases associated with cardio-metabolic issues gripping the country today. The first Dr. Morepen NOW clinic has been set up in HauzKhas, New Delhi.