Morepen Laboratories Ltd. today announced
audited results for the financial year 2001-02. The Company
registered a growth of 18.39% in gross turnover at Rs.
516.13 crores in the year ended March 31, 2002 as compared
to Rs. 435.98 crores of previous year. Profit before tax
has gone up by 9.13% at Rs. 86.65 crores vis-à-vis
Rs. 79.40 crores as for the year 2000-01. Profit after
tax stood at Rs. 54.00 crores, down from Rs. 73.20 crores
of previous year as this year saw an introduction of deferred
tax, which amounts to Rs. 25.65 crores hence lowering
the PAT. Further, due to increase in personnel, and other
expenditure including interest and depreciation also impacted
the profit of the company to the extent of 10.65% of the
turnover. This was, primarily, on account of business
expansion in the marketing arena by the company. The annual
exports for the year 2001-02 stood at Rs. 62.78 crores
as against Rs.42.95 crores recording a growth of 46.17%
over the previous year. The operating performance continues
to be strong with an EBITDA margin of 34.28%. The Global
Generics and Formulations business has shown a steady
growth of 20.05% and 14.34% respectively, vis-à-vis
last year.
Already established as a preferred manufacturer of high
quality generic drugs, FY 2001-02 saw Morepen firmly planting
its feet as marketing leaders in happening Health. Contributing
to growth are Morepen's four strategic business units
- Global Generics, Branded Formulations, Clinical
& Home Diagnostics and Dr. Morepen (fast moving health
goods), set up as four independent profit centers.
The management team has been freshly strengthened with
professionals from leading multinational and domestic
companies heading each SBU and support functions. With
an extensive sales & distribution network in place,
Morepen products are now available to the end consumer
all over the country.
Morepen continues to work on high value-added complex
molecules in its Bulk Drugs division, with the USFDA approved
Loratadine being the front-runner. This
year also saw Loratadine going off patent in Europe and
Canada. Loratadine goes off patent in USA in December
2002, which accounts for 85% of its Market. Morepen has
already tied up with Geneva (Novartis), which has Paragraph
IV exclusivity to sell Loratadine for first six months,
being the first ANDA filer in the USA. Morepen has already
doubled its manufacturing capacities to 24 tonnes for
Loratadine , inline with the estimated forecast, and would
be ready with the first consignment in July. Morepen has
also filed its third international patent for the new
process for amorphous form of Atorvastatin
Calcium, the third largest molecule the world over.
Mr. Sushil Suri, Chairman & Managing Director
of Morepen said, " Morepen has recognized the change
in pharma business and has shifted its focus from being
a manufacturing based company to a marketing format. Each
strategic business unit of Morepen is establishing and
expanding its marketing base to reach more and more consumers
effectively".
Morepen entered into a joint venture with Drugmax Inc.
of Florida in the last financial year to form MorepenMax.
This has given Morepen direct access to the US market
with the established marketing network of DrugMax; thus
providing immediate shelf space to its products in the
competitive generic drugs segment. In the plan for the
near future, MorepenMax will file new
ANDAs and would complete all regulatory
approvals for an entire range of generic products.
On the branded formulations front in
the last financial year, there has been a remarkable MAT
growth of48.3% as compared to a 10.6% growth rate of the
pharmaceutical Industry. (Source: Org-marg retail audit
March 2002) All new products, Orvastin
and Pentopen, Acifix and Sultamax
are also performing well and are already contributing
approx. 14% of the turnover. Orvastin (Atorvastatin) is
used as a cholesterol-lowering agent while Pentopen (Pantoprazole)
is used in treating peptic disorders. Dom Dt, Saltum and
Claridin - the three blue chip brands of Morepen, are
also performing very well with a MAT value growth rate
of more than 80%. Saltumax, an injectable
antibiotic, launched barely ten months back has already
become a front-runner in its category.
Morepen's diagnostic arm has also carved a niche for
itself. Morepen entered into two joint ventures for diagnostics
in the last financial year. One was with Ameriteck
of USA for marketing and manufacturing rapid
diagnostic assays and the other with Beurer
to market their range of health and therapeutic products
in India & the SAARC countries. In clinical diagnostics
too, the last financial year also saw revolutionary new
technologies - ID -MTS System being installed in 45 leading
blood banks of the country. OptiMAL, too evoked enthusiastic
response from doctors, hospitals and laboratories. Medipath
has launched two brands recently called HomeHealth,
a range of self-health diagnostic products like blood
pressure monitors, heat pads, body fat scales etc and
"QuickChek", an umbrella brand
for "Rapid" and "Point of care" diagnostic
assays. The Quick Chek portfolio will include a number
of products like pregnancy test, hepatitis test, AIDS
test and ovulation test
In July 2001 Morepen embarked on a new frontier in healthcare
-the Rs.4500 crore FMHG (Fast Moving Health Goods) market.
A category defined and established by Morepen with Dr.
Morepen, a dynamic new self health brand that
empowers individuals with their health. Dr. Morepen
continued its aggressive Health Campaign with a flurry
of activities last year - the launch of hhealth products
like C-Sip, C-candy, Dab Fizz etc and initiating vacation
programs for primary school children, health flashes on
television etc. Dr. Morepen was hailed as one of the top
five most successful brand launches of 2002 for redefining
the OTC category (Business Today Jan 2002).
Dr. Morepen has also acquired Burnol
from Reckitt Piramal in December 2001 to provide support
and deeper market penetration to other Dr. Morepen products
and also to give the company an entry into the 210 crores
antiseptic market. Various consumer-focused activities
this quarter have firmly established Dr. Morepen as a
highly reliable FMHG brand that has revolutionized the
total OTC marketing.
Dr. Morepen has also recently acquired
Lifespring, the health and beauty chain
and Lemolate, the fifth largest brand
in cough & cold segment. In line with the plans, the
recent acquisitions have given a fillip to the top line
of the company. Burnol brought in a turnover of Rs.6.20
crores, Lifespring another 7.54 crores and Lemolate now
would add another 9.60 crores.
Morepen Laboratories is internationally acclaimed for
its stringent quality standards and technological excellence.
Recently, Morepen launched Lifelyte -
a ready to drink ORS, based on the WHO formula. 3H is
a new initiative of Morepen that focuses on the much-neglected
area of patient care in this country. 3H which stands
for Help Healing and Happiness, aims at making a patient's
medical journey a pleasurable one. The action points initially
would be hospitals, nursing homes, doctor's clinics where
3H would adopt reception areas, hospital wards, OPDs for
their upkeep and cleanliness and also provide direction
indicators / signages at vantage points thus facilitating
the patient's quest in the intimidating hospital maze.
In the coming year, Morepen would focus on expanding
its marketing base and reach out to a larger consumer
base through its all India & global network with increased
product offerings of all strategic business units.
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