Morepen to phase out domestic bulk drug business

NEW DELHI, APRIL 16. Morepen Laboratories today said the company would phase out its domestic bulk drug business while eyeing the U.S. market for formulations.

The over Rs. 430 crore generic drug maker is in the process of strategically changing its business model by enhancing its share in branded formulations, the company Chairman and Managing Director, Mr. Sushil Suri, said here.

"We are also in talks with a couple of companies in the U.S. including our distributors and generic drug buyers for a strategic tie-up to enter the American formulations market," he said.

Mr. Suri said the company would phase out its domestic bulk drug business while retaining the part catering to the U.S. and other foreign markets.

He said the company was seeking the U.S. Food and Drug Approval for its plant to produce the drugs `Atorvastatin' and `Zafirlukast'.

"We will focus more on branded formulations for the domestic market as that is where the actual growth lies," he said. The company was also in the process of filing two patents.

Stating that the company had identified three new medicine segment for branded formulations, he said 66 new products would be introduced in the high value therapeutic segment including neuropsychiatry, diabetes, cardiovascular and gynaecology.

Mr. Suri said diagnostics was another core area of focus for Morepen where a joint venture with Diamed SG had already been reached.

As part of this joint venture, the company will introduce a rapid malaria test kit and ID microtyping system for blood group serology.

Elaborating the future plans, he said the company was eyeing biotechnology that was another growth area, and the business strategy for its biotech subsidiary, Morepen Biotech, will be unveiled shortly.

Mr. Suri said Morepen had already entered into a tie-up with New York University's school of medicine and added that the company would be eyeing life style segment.

- PTI

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Section  : Business
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