This pharma stock engaged in manufacturing and marketing pharmaceutical products, active pharmaceutical ingredients (APIs), diagnostics, and over-the-counter (OTC) healthcare products, skyrocketed 13 percent after launching Empamore, a new and affordable treatment for diabetes, heart failure, and chronic kidney disease.
Stock Price Movement:
With a market capitalization of Rs. 2,654.84 crores, the share of Morepen Laboratories Limited has reached an intraday high of Rs. 48.45 per equity share, rising nearly around 13.20 percent from its previous day’s close price of Rs. 42.80. Since then, the stock has retreated and is currently trading at Rs. 48.35 per equity share.
What Happened:
Morepen Laboratories has launched Empamore, a new and affordable treatment for diabetes, heart failure, and chronic kidney disease. With India having over 101 million diabetes patients, Empamore aims to provide quality care at nearly 90 percent lower costs than existing brands.
The product includes Empagliflozin tablets (10mg/25mg) and combination tablets with Metformin (500mg/1000mg). Manufactured in Morepen’s USFDA-approved facility, Empamore ensures high quality while being budget-friendly. This launch reflects Morepen’s commitment to providing affordable healthcare, helping millions of Indians manage their health without financial strain.
Product Portfolio:
Morepen offers a variety of products, including key pharmaceutical ingredients like Loratadine, Montelukast, Desloratadine, Atorvastatin, and Fexofenadine. The company is also known for its medical devices, especially in point-of-care diagnostics. Morepen has sold over 12 million glucometers and nearly 1.65 billion blood glucose strips, helping people monitor their health easily and effectively.
Margin Guidance:
The company’s management expects its profit margins to improve by focusing more on higher-profit finished dosage products and medical devices. Their long-term goal is to achieve an EBITDA margin of 15 percent. This improvement is expected to happen gradually as new products are launched and market conditions become more stable.
Future Outlook:
The management is cautiously optimistic about the future, expecting a growth rate of 10-15 percent in the coming years, depending on market conditions and new product launches. The company plans to maintain a 70:30 ratio of exports to domestic sales, aiming to boost profits through higher-margin export markets. Their key focus will be on expanding the medical devices segment and improving their product range in both the pharmaceutical and OTC categories.
Recent quarter results:
Morepen Laboratories Limited’s revenue has increased from Rs. 445 crore in Q3 FY24 to Rs. 453 crore in Q3 FY25, which has grown by 1.80 percent. The net profit has decreased by 15.63 percent from Rs. 32 crore in Q3 FY24 to Rs. 27 crore in Q3 FY25.
Written by – Nikhil Naik
