Morepen Laboratories, a Rs.450 crore plus pharma major from New Delhi, has earned a net profit of Rs.2.77 crore during the fourth quarter ended March 2016 as against a net loss of Rs.3.72 crore in the corresponding period of last year. The company has shown extraordinary expenditure of Rs.4.40 crore as settlement amount, arising out of arbitrary award, relating to termination of technology transfer agreement for manufacture of 'Caroverine', an API for treatment of synaptocochlear tinnitus and abdominal pains. Its EBDITA has taken quantum jump of 136 per cent and reached at Rs.18.62 crore as compared to Rs.7.90 in the same period of last year.

Its net sales went up sharply by 45 per to Rs.119.77 crore from Rs.82.59 crore. Its EPS improved to Rs.0.16 from negating Rs.0.09 in the last period.  The sales of bulk drugs grew by 50 per cent. Its home diagnostics and finished dosages segment moved up by 35 per cent and 40 per cent respectively. The total sales of Montelukast increased by over 90 per cent to Rs.25.71 crore, followed by Loratadine and Atorvastatin, which grew by 20 per cent and 37 per cent respectively.

Sushil Suri, chairman and managing director said, “Enhanced focus on cost reduction and adoption of innovative processes resulted in this remarkable turnaround, putting the company back on the profit trajectory.”

For the full year ended March 2016, Morepen's consolidated net sales increased by 21.9 per cent to Rs.469.31 crore from Rs.384.97 crore in the previous year. Its net profit went up sharply to Rs.12.80 crore from Rs.2.14 crore. EPS improved to Rs.0.38 from Rs.0.04. Its EBDITA moved up 26.5 per cent to Rs.62.77 crore from Rs.49.61 crore. As against the equity capital of Rs.89.96 crore, its reserves and surplus worked out to Rs.90.67 crore.

Morepen Labs has established a leadership position for its anti asthmatic bulk drug Montelukast in the global market, followed by Mylan and TAPI (Teva). According to QYR Research, Morepen's global sales for Montelukast sodium stood at 16240 kgs in calender year 2015 resulting in a market share of approx. 23 per cent compared to Mylan's and Teva's 12 per cent each.