Synopsis:
Morepen Medipath Ltd has entered a 50:50 joint venture with UAE-based Bimedical FZE to set up a medical device manufacturing company in India.
The shares of the Pharma company, specializing in pharma, focusing on APIs, generics, branded drugs, and diagnostic devices like BP monitors and glucometers, jumped upto 6 percent upon signing a joint venture agreement with Bimedical FZE, a UAE-based company.
With a market capitalization of Rs. 2,792.92 Crores on Tuesday, the shares of Morepen Laboratories Ltd rose by 5.7 percent after making a high of Rs. 51.93 compared to its previous closing price of Rs. 49.10.
What Happened
Morepen Laboratories Limited has announced that its subsidiary, Morepen Medipath Limited (formerly Morepen Medtech Limited), has signed a joint venture agreement with Bimedical FZE, a UAE-based company.
The agreement aims to establish a new joint venture company in India, focused on manufacturing, trading, and selling medical device products, and both parties will contribute equally (50:50) to the share capital of the new company.
Morepen Laboratories will hold an indirect 30% stake in the venture through its subsidiary. The proposed JVC will be a related party, though the company’s promoter group holds no direct interest beyond their role in MML. No regulatory approvals are currently required, and the consideration will be in cash. The initiative aligns with Morepen’s existing presence in the medical device sector and is expected to support its strategic expansion in this space.
Financials & Others
The company’s revenue declined by 6.59 percent from Rs. 455 crore to Rs. 425 crore in Q1FY25-26. Meanwhile, the Net profit declined from Rs. 36 crore to Rs. 11 crore during the same period.
The company has a ROCE of 15.1% and a low debt-to-equity ratio of 0.09, indicating strong financial health. Its stock trades at a P/E of 30.2, slightly below the industry average of 33.4, suggesting that the stock might be undervalued
Morepen Laboratories Limited is an Indian pharmaceutical company established in 1984 and headquartered in Himachal Pradesh, India. The company specializes in manufacturing active pharmaceutical ingredients (APIs), formulations, home diagnostics, and over-the-counter (OTC) healthcare products, with prominent brands such as Dr. Morepen and Gubb World.
It is a market leader in products like glucometers and blood pressure monitors, having installed over 15 million glucometers and selling millions of blood glucose strips across India, especially in tier-2 and tier-3 cities. The company exports to numerous countries and holds certifications from international regulatory authorities like the USFDA, WHO GMP, and EU GMP, reflecting its robust global footprint.
In Q1 FY26, the company’s standalone business comprised two main segments: Medical Devices, contributing 41% of revenue, and the Pharma Business (API + Rx), which accounted for 59% of revenue.
In Q1 FY26, the medical devices segment recorded revenue of ₹161 crore, up 16% from ₹138 crore in Q1 FY25, and the pharma business reported revenue of ₹235 crore, down 6% from ₹250 crore in Q1 FY25.
Written by Sridhar J
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