| |
| Morepen
acquires Lemolate The
fifth largest brand in cough and cold Segment
|
| Mumbai, June 25, 2002 |
From
left to right: Mr. Sushil Suri, Chairman and Managing
Director, Morepen Laboratories Ltd., along with
Mr. Yashodhan Shah - Managing Director, Yash Pharma
Laboratories Ltd., signing documents for the acquisition
of Lemolate by Morepen. |
Dr. Morepen Ltd. today
announced its third acquisition - Lemolate, a premium
brand of Yash Pharma Laboratories Ltd. in the cough and
cold category. The acquisition has been made at a total
consideration of Rs. 10.95 crores. The company will market
the brand under the umbrella of Dr. Morepen, similar to
the other two recent acquisitions, Burnol and Lifespring.
Lemolate, the fifth largest brand in
the Cough & Cold category has registered a turnover
of 9.60 crores in the year ending March 2002. As a part
of its strategy, Dr. Morepen is focusing on developing
a basket of specialty brands that would offer its customers
a complete range of Self-Health products. Dr. Morepen
already has a comprehensive gastro range, with Dab- Fizz,
Dab Gel, Dab Tab, Isabgol and Gol Goli grabbing a significant
market share. The powdered drink, C-sip, has also been
very well received in the market. With the acquisition
of Lemolate, Morepen will enter the approximate
Rs. 800 crores Cough and Cold
segment, thus further expanding Dr. Morepen's
FMHG portfolio. The product has enjoyed strong
doctor endorsement since 1978, however currently 60% of
its sales comes through OTC. Lemolate can be sold as OTC
in its current formulation.
Speaking on the acquisition, Mr. Sushil Suri,
CMD, Morepen Laboratories Ltd., said, "As
a strategy, we have decided to enter this category with
one of the forerunners to expand the Dr. Morepen's basket
of health products, therefore carrying its brand promise
of 'Health in Your hands' further. The inherent strengths
of the brand combined with our marketing strengths, will
help us achieve high volumes and growth."
In line with the plans, the recent acquisitions have
given a fillip to the topline of Dr.Morepen. Burnol brought
in a turnover of Rs.6.20 crores and Lifespring further
added Rs.7.54 crores. Now Lemolate will rake in another
Rs.9.60 crores, consequently stimulating the growth of
the company and facilitating its entry into newer markets.
Morepen will also get access to the large distribution
network of Lemolate that would complement
the existing distribution and dealer network of the company.
Ernst & Young were advisors to the sellers Yash Pharma
Laboratories Ltd. and KPMG carried out the due diligence
for Morepen Labs.
The brand has a very strong equity in the eastern and
western parts of the country, which account for nearly
70% of the sales. Lemolate is available in packs of ten
tablets and is positioned as a "first-rate First
Aid for Cold-n-flu syndrome". Lemolate contains Phenylephrine,
which is not under DPCO and is much safer than PPA (Phenyl-Propanol-Amine).
PPA is not a preferred drug worldwide.
Benefits of acquisition
Some of the strategic advantages that this acquisition
will bring are:
-
Broaden the product portfolio of
Dr. Morepen
-
Provide strategic entry into the
Rs.800 crore Cough and Cold segment. Rather than creating
a totally new brand in a cluttered category of 112 brands,
the advantages of acquiring an established brand greatly
outweigh that of a start-up.
-
Extend the brand to North and South
India where the company has a strong distribution network
thereby increasing the market share considerably.
-
Consolidate its position in the western
and northern markets
- An established brand like Lemolate provides tremendous
opportunity for brand extension in the cough & cold
segment.
About Morepen Laboratories limited
Morepen Laboratories Limited (MLL) is one of the fastest
growing Indian transnational in the country and has three
high-tech plants in Himachal. MLL exports to over 50 countries,
including the highly regulated markets of USA, Western Europe
and Canada
Morepen's four strategic business units - Global
Generics, Branded Formulations, Clinical and Home Diagnostics,
and Fast Moving Health Goods - have been set
up as four independent profit centers. The management
team has been freshly spruced up with professionals heading
all SBU's and other support departments. Each SBU has
its own management process that plans and monitors the
SBU performance.
Global Generics
Morepen continues to work on high value-added complex
molecules in its Bulk Drugs division, with the USFDA approved
Loratadine being the front-runner. With Loratadine
going off patent in the US in December, a very good opportunity
based on forecasts is seen and the manufacturing capacity
has been doubled to 24 tonnes per annum, which comes to
200 kgs per month. The Company has already tied up with
Geneva, the first ANDA filer for Loratadine . Geneva has
a six-month exclusivity with Morepen's Loratadine . MorepenMax,
a joint venture between Morepen and DrugMax,
has given Morepen a direct access to the US market, providing
immediate shelf space to its products in the competitive
Generic Drugs segment. As per an immediate plan MorepenMax
will file new ANDA's and would complete all regulatory
approvals for an entire range of generic products.
Branded Formulations
Morepen's Branded Formulations have also been growing
at a phenomenal rate of 47.8%, much faster than the industry,
which is growing at 11%(Org April, 2002). Some of the
blue chip brands like Dom DT, and Saltum of Morepen have
occupied top positions in their category. Morepen recently
launched three new products in Branded Formulations. Orvastin
(Atorvastain) is a cholesterol-lowering agent, Pentopen
(pentoprazole) is another significant launch by Morepen
is used for treating peptic disorders. Lifelyte, a ready-to-drink
oral Rehydrating Solution is another innovative offering
by Morepen. This life saving solution replenishes the
electrolytes and water lost during heat exhaustion, vomiting
and diarrhea.
Dr. Morepen
Dr. Morepen continues its aggressive Health Campaign with
a flurry of activities to consolidate the FMHG (Fast moving
Health goods) category. Dr. Morepen was hailed as one
of the top five most successful brand launches of 2001
for redefining the OTC category (Business Today Jan 2002).
The total range of Dr. Morepen products have been well
accepted in the market showing a very encouraging upward
sales trend. With a firm sales and distribution network
in place, Dr. Morepen is ready to add more products and
brands thus consolidating its position as a forerunner
in FMHG. The acquisition of Burnol has provided support
and deeper market penetration to other Dr. Morepen products
and given the company an entry into the 210 crores antiseptics
market. Further, the acquisition of the Lifespring chain
of health and beauty stores has expanded the Dr. Morepen
Franchise into the retail format.
Clinical and Home Diagnostics
The Diagnostic division of Morepen has also lived up to
the company's profitable legacy by showing profits in
the first year of operations. It has successfully launched
world-class diagnostic products acquired through joint
ventures with Diamed AG of Switzerland. Ameriteck of America
and Beurer of Germany. The division also recently launched
its own private label, Quickchek, which would have a range
of do-it at home diagnostic tests. Quickchek pregnancy
kit is already very well accepted in the market.
In the coming months, Morepen plans to reach out to a
larger consumer base through its all India & global
network, and increased products penetration in various
segments of the pharmaceutical market.
Back to the
Press Releases Home Page
|
| Morepen
acquires Lemolate The
fifth largest brand in cough and cold Segment
|
| Mumbai, June 25, 2002 |
From
left to right: Mr. Sushil Suri, Chairman and Managing
Director, Morepen Laboratories Ltd., along with
Mr. Yashodhan Shah - Managing Director, Yash Pharma
Laboratories Ltd., signing documents for the acquisition
of Lemolate by Morepen. |
Dr. Morepen Ltd. today
announced its third acquisition - Lemolate, a premium
brand of Yash Pharma Laboratories Ltd. in the cough and
cold category. The acquisition has been made at a total
consideration of Rs. 10.95 crores. The company will market
the brand under the umbrella of Dr. Morepen, similar to
the other two recent acquisitions, Burnol and Lifespring.
Lemolate, the fifth largest brand in
the Cough & Cold category has registered a turnover
of 9.60 crores in the year ending March 2002. As a part
of its strategy, Dr. Morepen is focusing on developing
a basket of specialty brands that would offer its customers
a complete range of Self-Health products. Dr. Morepen
already has a comprehensive gastro range, with Dab- Fizz,
Dab Gel, Dab Tab, Isabgol and Gol Goli grabbing a significant
market share. The powdered drink, C-sip, has also been
very well received in the market. With the acquisition
of Lemolate, Morepen will enter the approximate
Rs. 800 crores Cough and Cold
segment, thus further expanding Dr. Morepen's
FMHG portfolio. The product has enjoyed strong
doctor endorsement since 1978, however currently 60% of
its sales comes through OTC. Lemolate can be sold as OTC
in its current formulation.
Speaking on the acquisition, Mr. Sushil Suri,
CMD, Morepen Laboratories Ltd., said, "As
a strategy, we have decided to enter this category with
one of the forerunners to expand the Dr. Morepen's basket
of health products, therefore carrying its brand promise
of 'Health in Your hands' further. The inherent strengths
of the brand combined with our marketing strengths, will
help us achieve high volumes and growth."
In line with the plans, the recent acquisitions have
given a fillip to the topline of Dr.Morepen. Burnol brought
in a turnover of Rs.6.20 crores and Lifespring further
added Rs.7.54 crores. Now Lemolate will rake in another
Rs.9.60 crores, consequently stimulating the growth of
the company and facilitating its entry into newer markets.
Morepen will also get access to the large distribution
network of Lemolate that would complement
the existing distribution and dealer network of the company.
Ernst & Young were advisors to the sellers Yash Pharma
Laboratories Ltd. and KPMG carried out the due diligence
for Morepen Labs.
The brand has a very strong equity in the eastern and
western parts of the country, which account for nearly
70% of the sales. Lemolate is available in packs of ten
tablets and is positioned as a "first-rate First
Aid for Cold-n-flu syndrome". Lemolate contains Phenylephrine,
which is not under DPCO and is much safer than PPA (Phenyl-Propanol-Amine).
PPA is not a preferred drug worldwide.
Benefits of acquisition
Some of the strategic advantages that this acquisition
will bring are:
-
Broaden the product portfolio of
Dr. Morepen
-
Provide strategic entry into the
Rs.800 crore Cough and Cold segment. Rather than creating
a totally new brand in a cluttered category of 112 brands,
the advantages of acquiring an established brand greatly
outweigh that of a start-up.
-
Extend the brand to North and South
India where the company has a strong distribution network
thereby increasing the market share considerably.
-
Consolidate its position in the western
and northern markets
- An established brand like Lemolate provides tremendous
opportunity for brand extension in the cough & cold
segment.
About Morepen Laboratories limited
Morepen Laboratories Limited (MLL) is one of the fastest
growing Indian transnational in the country and has three
high-tech plants in Himachal. MLL exports to over 50 countries,
including the highly regulated markets of USA, Western Europe
and Canada
Morepen's four strategic business units - Global
Generics, Branded Formulations, Clinical and Home Diagnostics,
and Fast Moving Health Goods - have been set
up as four independent profit centers. The management
team has been freshly spruced up with professionals heading
all SBU's and other support departments. Each SBU has
its own management process that plans and monitors the
SBU performance.
Global Generics
Morepen continues to work on high value-added complex
molecules in its Bulk Drugs division, with the USFDA approved
Loratadine being the front-runner. With Loratadine
going off patent in the US in December, a very good opportunity
based on forecasts is seen and the manufacturing capacity
has been doubled to 24 tonnes per annum, which comes to
200 kgs per month. The Company has already tied up with
Geneva, the first ANDA filer for Loratadine . Geneva has
a six-month exclusivity with Morepen's Loratadine . MorepenMax,
a joint venture between Morepen and DrugMax,
has given Morepen a direct access to the US market, providing
immediate shelf space to its products in the competitive
Generic Drugs segment. As per an immediate plan MorepenMax
will file new ANDA's and would complete all regulatory
approvals for an entire range of generic products.
Branded Formulations
Morepen's Branded Formulations have also been growing
at a phenomenal rate of 47.8%, much faster than the industry,
which is growing at 11%(Org April, 2002). Some of the
blue chip brands like Dom DT, and Saltum of Morepen have
occupied top positions in their category. Morepen recently
launched three new products in Branded Formulations. Orvastin
(Atorvastain) is a cholesterol-lowering agent, Pentopen
(pentoprazole) is another significant launch by Morepen
is used for treating peptic disorders. Lifelyte, a ready-to-drink
oral Rehydrating Solution is another innovative offering
by Morepen. This life saving solution replenishes the
electrolytes and water lost during heat exhaustion, vomiting
and diarrhea.
Dr. Morepen
Dr. Morepen continues its aggressive Health Campaign with
a flurry of activities to consolidate the FMHG (Fast moving
Health goods) category. Dr. Morepen was hailed as one
of the top five most successful brand launches of 2001
for redefining the OTC category (Business Today Jan 2002).
The total range of Dr. Morepen products have been well
accepted in the market showing a very encouraging upward
sales trend. With a firm sales and distribution network
in place, Dr. Morepen is ready to add more products and
brands thus consolidating its position as a forerunner
in FMHG. The acquisition of Burnol has provided support
and deeper market penetration to other Dr. Morepen products
and given the company an entry into the 210 crores antiseptics
market. Further, the acquisition of the Lifespring chain
of health and beauty stores has expanded the Dr. Morepen
Franchise into the retail format.
Clinical and Home Diagnostics
The Diagnostic division of Morepen has also lived up to
the company's profitable legacy by showing profits in
the first year of operations. It has successfully launched
world-class diagnostic products acquired through joint
ventures with Diamed AG of Switzerland. Ameriteck of America
and Beurer of Germany. The division also recently launched
its own private label, Quickchek, which would have a range
of do-it at home diagnostic tests. Quickchek pregnancy
kit is already very well accepted in the market.
In the coming months, Morepen plans to reach out to a
larger consumer base through its all India & global
network, and increased products penetration in various
segments of the pharmaceutical market.
Back to the
Press Releases Home Page
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