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Morepen to offer scheme of Conversion of fixed deposits into equity to its FD holders
New Delhi, Jan 20, 2004

The Board of Directors of Morepen Laboratories Limited have in principle approved a proposal to offer an equity option to fixed deposit holders as recompense to the trust and patience shown by the FD holders for past 15 months. The proposal, which is subject to approval by shareholders in the forthcoming AGM of the company,. was finalized after seeking the views of the FD Brokers and the key Financial Institutions & Banks. This would give the option to the FD holders to convert their deposit amount into fully convertible debentures; and also provide reward by way of possible equity upside to 80,000 depositors who have been with the Company for a long time. The conversion is proposed to be at SEBI determined formula at the value price which would include the outstanding amount plus the overdue interest. The scheme is in the best interest of the Fixed Deposit holders, as it will enable them to liquidate their amounts at an early stage as compared to the period of four years directed in the Company Law Board Order. The equity conversion may also be extended to the unsecured creditors of the company who have supported the company.

In long term perspective, this proposal will also help the Company by easing out the current pressure on the operations of the Company due to regular outflow of funds on account of FD repayments and also help increase the shareholders' value. The uptrend in the pharma markets world wide and the boom in the stock markets in India would further help the investor to realize full potential of the equity option.

Inking the turnaround of operations
The operations of the Company have also shown an upward trend in this quarter and the company is now poised to make progress in terms of sales and profits in the Jan-Mar-04 quarter going forward.

The sales of Rs.24 crores in the December quarter represent a trend of consolidation given that this is the second consecutive quarter in which the downfall of sales of the previous three quarters has been arrested. The API exports, mainly of Loratadine to US market have contributed nearly 80% to the turnover of the company in last quarter and is further poised to increase in the current Quarter. Operations have become cash positive due to the cost cutting measures introduced by the company over the last few months.

With a very clear focus on the High margin API exports, further Plans are afoot to further augment Bulk drug sales in the high realization US and Canada markets with additional growth also planned for other regulated markets.

Rationalization of manpower has reduced staff cost & the Manufacturing and other expenses have also been brought down. the Company is taking further steps to reduce the bill of materials as also to reduce other overheads and expenses to boost margins further. These have positively impacted the EBIDTA figures and will do so going forward. An upbeat mood is permeating through the organization boosting employee morale and creating a sense of pan-Company ownership for what is clearly a revival story.

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Morepen Laboratories registers 14.91 % rise in turnover
New Delhi, January 29, 2003

The Delhi-based Rs 530 crore pharma and healthcare company, Morepen Laboratories Limited has reported 14.91 % rise in total income during the 3rd quarter ended December 2002. The company’s total income during the quarter stood at Rs. 152.35 Crore against Rs. 132.58 Crore in the corresponding period of the last year.

Category Quarter ended December 31, 2002 (in Rs. Crores) Quarter ended December 31, 2001 (in Rs. Crores)
PBT 14.33 27.85*
PAT 9.06 17.91*
Net sales 152.35 132.58 *
EPS for quarter (On Rs.2/- face value) 0.94 1.82

* Includes non-recurring income of Rs 10.00 crore being insurance claim

Profit before tax during the quarter stood at Rs 14.33 crore compared to Rs 27.85 crore recorded during the corresponding quarter of last year. The figure last year included a non-recurring income of Rs 10.00 crore being insurance claim.

Profit after tax was Rs 9.06 crore as against Rs 17.91 crore in the corresponding quarter of last fiscal. Profit after tax (excluding the non-recurring income last year) improved by 14.5 per cent in the third quarter over same quarter last year. Earning per share stood at Rs 0.94.

During nine months ended December 31, 2002, total income stood at Rs 348.21 crore as compared to Rs 312.69 crore registered during the corresponding period of last fiscal, a rise of 11.35 %. Profit before tax stood at Rs 56.13 crore compared to Rs 64.65 crore during the corresponding period of the previous year. Profit after tax for the nine months ended December 31, 2002 was Rs 35.5 crore compared to Rs 38.94 crore during the same period of the last fiscal.

Speaking on the occasion Mr.Sushil Suri, CMD, Morepen Labs said, "The blockbuster loratadine went off-patent in December 2002 and our focus on the US generic market will start yielding results now."

Global Generics
During the quarter, topline growth at Morepen has been led by exports. Exports during the Quarter grew by 49.29 % to Rs 25.44 crore up from Rs 17.04 crore recorded during the third quarter last year. Exports during nine months Apr-Dec'02 grew to Rs 82.44 crore against Rs 46.16 crore in Apr-Dec'01. Apart from loratadine, atorvastatin, fexofenadine and sultamicilin also did exceedingly well on the export front.

3H
Morepen's branded formulations division - 3H Morepen also saw a major upswing with DOM-DT becoming the fourth most prescribed brand by gastroenterologists during the quarter. Another blue chip brand Saltumax is also doing phenomenally well and is expected to be Morepen's first brand to cross the Rs.10 crore mark during the current financial. Saltumax is an antibiotic available in tablet and injectible form; it is the No.1 antibiotic in its category. ORG MARG has rated Morepen as one of the fastest growing companies for the quarter growing at over 40 per cent.

Medipath
The diagnostics division of Morepen with its two new brands "Home Health" and "Quickchek" has been showing remarkable performance this quarter as well. The Home Health products - BP Monitors, Heating Products, Body fat scales have carved a niche for themselves in the market. Quickchek has added the Analyticon's range of urine analysis reagent dipsticks and equipments under its portfolio. Morepen entered an alliance with Analyticon GmbH of Germany to market the urine analysis range. This will give Morepen a share in the Rs.10 crore urine analysis business.

Dr Morepen and Lifespring
On the FMHG front, the Health & Beauty chain Dr.Morepen Lifespring has shown the highest monthly sales in its two and a half years of existence. The average monthly sales for this quarter were 22% higher than the same for the corresponding period last year. The chain also introduced Mineral Care - a range of exotic spa products scientifically designed from Dead Sea products. This is the first time this range is available in India. Dr.Morepen Burnol has shown brilliant sales, the last six months sales being higher than the sales for the entire last financial year.

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