The board of directors of the Morepen Laboratories Limited, have given an approval for a GDR Issue at a board meeting held on March 8, 2003.The company has already filed offer documents at the Luxembourg Stock Exchange, where it is at advance stages of approval. The proceeds of the issue will be used in the operations and growing working capital needs of the company and partly for debt retirement.

Further the Board also decided to spin off its wholly owned subsidiary, Dr Morepen Limited into a separate entity. Morepen Laboratories would now focus entirely on its core business of pharmaceuticals- bulk drugs and formulations and other research and development activities. Dr Morepen would now become an independent company, which will meet all its future investments on its own.

Speaking on the occasion, Mr. Sushil Suri, Chairman and Managing Director, Morepen Laboratories said, "The decision to create Dr Morepen into a separate entity has been taken in line with the growth plans of Morepen Laboratories which would now focus on its core business of pharmaceuticals, concentrating on filling DMF for high value molecules like Desloratadine and ANDA's for foray into US generics market.

Morepen Laboratories, having established itself firmly in the API market internationally is now focusing in filling DMF's of high value molecules like Desloratadine and Atorvastatin and ANDA's to capture the US generic market. Morepen has recently filed a process Patent (PCT) for Desloratadine, which is worth $ 500 million in global markets and would soon be filing a drug master for the same. Another high value molecule for which Morepen has filed a process patent is Atorvastatin (Liptior) that is worth $7 billion and ranked at no 1 molecule world over.

Dr Morepen will independently handle all the future investments required in the OTC and retail business in future and may exercise various options of raising funds through equity and debt route. Dr Morepen Limited is in the business of manufacturing and marketing a range of Fast. Moving Health Goods (FMHG) and has recently forayed into retail business with acquisition of Lifespring, the chain of Health and beauty stores. Dr Morepen is expected to clock a turnover of over Rs. 32-33 crore this financial year and is expected to cash break-even in next financial year.