Morepen Labs Eyeing Multi-billion Dollar Global Market for New API Molecules going Off-patent in next 5-6 Years

Quarterly efficiency at a look

(Rs. in Crores)

Outcomes Highlights: Q3'FY 2020-21 (Consolidated)

• Internet Revenue After Tax for Q3'FY 2020-21 has grown by 120 per cent at Rs. 23.79 crore on account of higher margin realization through the quarter.

• Internet Income for Q3'FY 2020-21 stood at Rs. 310.26 crore as in opposition to Rs. 234.66 crore for Q3'FY2019-20, registering an increase of 32 per cent. This rise was primarily on account of a constant progress in gross sales of Bulk Medication (APIs) and a big progress in gross sales of Diagnostic Gadgets through the quarter.

• The expansion was led by API Enterprise with 25 per cent rise at Rs. 165.03 crore in Q3'FY 2020-21.

• EBIDTA and Money revenue for Q3'FY 2020-21 went up by 64 per cent and 62 per cent at Rs. 32.63 crore and Rs. 31.37 crore, respectively.

• Export Gross sales Income for Q3'FY 2020-21 jumped up by 25 per cent at Rs. 112.06 crore. Home Gross sales Income grew by 37 per cent at Rs. 198.21 crores through the quarter.

• Diagnostic Gadgets' enterprise grew by a unprecedented 104 per cent at Rs. 87.58 crore, contributing 28 per cent to the corporate's high line for the quarter. Gross sales of Blood Strain Screens elevated by 210 per cent through the quarter and that of Blood Glucose Screens by 99 per cent.

• OTC Enterprise Gross sales Income grew by 4 p.c at Rs. 18.40 crore in Q3'FY 2020-21.

Morepen Laboratories Ltd. is eyeing an all new multi-billion greenback world API (Lively Pharmaceutical Substances) market with the addition of recent molecules in its bulk medication portfolio. The main target areas of those new molecules embrace power and way of life ailments like anti-diabetic, anti-hypertensive, ldl cholesterol reducers and neuro-psychiatric. International patent expiry for these new molecules is slated in subsequent 5-6 years. These new molecules are at present below improvement and would come into play in phases over the subsequent 24 to 36 months.

This was disclosed by Mr. Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd., After the Q3'FY 2020-21 outcomes' board assembly right here on Friday. The corporate is gearing quick to strengthen its portfolio with a powerful pipeline of merchandise in all of the aforesaid focus areas, to be launched over the subsequent three to 4 years in each home in addition to worldwide markets. The corporate is investing closely in its R&D and in constructing new product blocks whereas concurrently creating extra capacities to facilitate manufacturing of those new molecules, he mentioned.

"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 programme that would see a consistent rise in its sales and profitability on a year-on-year basis," Mr. Suri added.

Higher margin realization has helped Morepen Labs in reporting an increase of 120 per cent in its Internet Revenue after Tax (Consolidated) at Rs. 23.79 crore in Q3'FY 2020-21. Internet revenue for the 9 months interval ended December 31^st 2020 stood at Rs. 70.33 crore, registering an increase of 212 per cent in opposition to the corresponding interval of the earlier monetary yr. The 9 months Incomes Per Share (EPS) stood at Rs. 1.56 as in opposition to Rs. 0.50 within the corresponding interval of the earlier fiscal.

Internet Income (Consolidated) rose by 32 per cent at Rs. 310.26 crore in Q3'FY 2020-21 and by 39 per cent at Rs. 909.36 crore within the 9 months interval ended December 31^st 2020, primarily on account of a constant progress in gross sales of Bulk Medication (APIs) and a big progress within the gross sales of Diagnostic Gadgets over the last two quarters of FY 2020-21. Formulations and OTC merchandise additionally registered a secure bounce.

EBIDTA for Q3'FY 2020-21 rose by 64 per cent at Rs. 32.63 crore and Money Revenue by 62 per cent at Rs. 31.37 crore.

API enterprise maintained its lead contributing 54 per cent to the corporate's topline in Q3'FY 2020-21. API Gross sales Income through the quarter grew by 25 per cent at Rs. 165.03 crore. Inside the API phase, 4 key merchandise Loratadine, Montelukast, Atorvastatin and Rosuvastatin contributed Rs. 143.72 Crores to the corporate's topline and registered a outstanding progress of 25% over corresponding quarter within the earlier fiscal.

Synopsis of Quarterly and 9 months Efficiency (Consolidated)

(Rs. in Crores)

API Exports recorded a formidable progress of 23 p.c at Rs. 110.39 crore in Q3'FY 2020-21. Home API enterprise recorded a progress of 28 per cent at Rs. 54.64 crore with an enchancment of 20 per cent within the gross sales of Montelukast. For the 9 months interval ending December 31, 2020, export revenues from USA recorded a progress of 43 p.c, carefully adopted by 40 per cent income progress from the Asian markets. South American and African markets additionally recorded good-looking progress of 59 per cent and 31 per cent, respectively.

Residence Diagnostics Gross sales Income grew by 104 per cent in Q3'FY 2020-21 at Rs. 87.58 crore with B.P. Screens' gross sales rising by round 210 per cent and Blood Glucose Screens by 99 per cent. OTC Gross sales Income grew by 4 per cent at Rs.18.40 crore.

Throughout the present yr, firm has filed 4 new patents for US and Indian markets along with 125 current patents in its portfolio thus strengthening the IPR (Mental Property Rights) basket of the corporate for varied New Merchandise. 5 new merchandise within the anti-diabetes, anti-depressant, and anti-coagulant segments have been developed by the corporate's Analysis and Growth (R&D) centre through the first 9 months of the present fiscal. Morepen Labs has additionally filed 9 Drug Grasp File (DMF) in the US and yet one more Import Drug License (IDL) for Chinese language Markets taking the tally to 120 DMFs and 10 IDLs.

Firm's Board has lately accredited a mega growth plan involving an outlay of Rs. 178 crore. The growth plan has already been cleared by Himachal State Authorities below single window clearance scheme. It could add 2000 MT p.a. of APIs manufacturing capability along with 3000 MT p.a. capability already put in, and likewise generate extra employment for about 700 individuals. The corporate is awaiting environmental clearance by State Degree Approval Committee for this growth undertaking. Extra capacities will facilitate manufacturing of over 40 new and current bulk medication masking varied therapeutic classes together with anti-diabetic, anti-hypertensives, anti-allergic, anti-asthmatic, ldl cholesterol reducers, anti-viral, anti-coagulants, anti-psychotic and anti-depressants. The expanded capability is more likely to start industrial manufacturing over the subsequent three years. The corporate proposes to fund the growth primarily by means of inner accruals.

About Morepen Laboratories Ltd. (www.morepen.com)

Morepen Laboratories Ltd. is a 36-year outdated, round Rs. 1,200 Cr. pharmaceutical and healthcare merchandise firm. The corporate went public within the yr 1992 and is at present listed at each the Bombay Inventory Change (BSE) in addition to the Nationwide Inventory Change (NSE).

Morepen is a number one producer of high-quality APIs, Residence Diagnostics, Formulations and OTC merchandise in north India. All of the manufacturing amenities of the corporate are inthe state of Himachal Pradesh and meet the newest worldwide requirements. Firm's each API amenities at Masulkhana and Baddi are accredited by USFDA and different regulatory our bodies of Europe, Asia, and Australia. The corporate's state-of-the-art manufacturing facility at Baddi includes a scientifically built-in complicated of 10 vegetation, every with a selected product profile.

Amongst a number of APIs manufactured by Morepen, the corporate is the biggest producer of Loratadine and Montelukast (anti-allergy and anti-asthmatic medication). It additionally enjoys a big share for Atorvastatin and Rosuvastatin (Ldl cholesterol lowering medication) within the worldwide market. In addition to, the corporate has established an in depth footprint for its API merchandise on the power of high quality, documentation and consistency in regulatory compliances, each within the home in addition to world markets. Morepen has achieved to its credit score the enduring confidence of a powerful (over 1250) buyer base spanning over 80 international locations for its main API merchandise.

According to its imaginative and prescient of holding tempo with the altering panorama, Morepen continues to spend money on its Analysis and Growth (R&D) infrastructure aimed toward growing new molecules to ship the newest medication at aggressive costs within the world markets. The corporate's sturdy devoted R&D staff has efficiently developed 22 merchandise in final three years out which 12 merchandise have already been commercialized. The corporate has additionally began supplying these new merchandise to clients with full documentation like DMF, tech packs and different regulatory compliances.

Morepen's R&D Centre meets all the worldwide regulatory necessities and was lately accredited by Division of Scientific & Industrial Analysis, Govt of India, New Delhi. Morepen R&D and QA staff, recognized for its impeccable service, has filed 125 Patents, 60 DMFs and eight CEPs for USA and Europe, Japan, China, Taiwan and Australian markets.

Morepen can be a longtime title in house diagnostics sector which remained untapped for a very long time in India. Dr. Morepen has gained No.1 place in manufacturing and advertising of Blood Glucose Screens in India, displacing some established multinational gamers. With a secure base of greater than 4 million installations of Blood Glucose Screens, the corporate has bought greater than 500 million glucometer strips (single exams) until date. Dr. Morepen additionally has a formidable presence and is the chief within the Blood Strain Screens and Nebulizers segments within the home market.

Model Dr. Morepen, which was launched approach again in 2001, has created a distinct segment for itself in over-the-counter (OTC) and Self-Well being phase merchandise as nicely. Dr. Morepen has reached all around the nation with over 50 merchandise together with well-known manufacturers like 'Burnol' and 'Lemolate'.