Shares of Morepen Laboratories Ltd rallied 5% on Tuesday, 9 September, after the company announced that its subsidiary, Morepen Medipath, entered into a joint venture (JV) agreement with Bimedical FZE, an entity based in the UAE.

The new joint venture company will be a related party of Morepen Laboratories. The company’s promoter/promoter group has no interest in the new JVC, other than as Morepen Medipath members.

In its regulatory filing, the company said, “This is to inform you that Morepen Medipath Limited (formerly known as Morepen Medtech Limited), a subsidiary of the company, has executed a joint venture agreement with Bimedical FZE, to form a joint venture company.” 

The planned joint venture will manufacture, trade, and sell medical device-related items. 

Morepen Medipath and Bimedical FZE will contribute 50:50 to the proposed joint venture’s share capital.

The Ministry of Corporate Affairs recently approved the formation of Sigmacheck Health with an authorised capital of Rs 1,00,000 divided into 10,000 equity shares of Rs 10. 

The incorporated entity, as a step-down subsidiary of the company, is a related party, and the incorporation was intended to meet the expanding demands for medical equipment.

Morepen Laboratories is an Indian pharmaceutical and healthcare firm that creates, produces, and sells Active Pharmaceutical Ingredients (APIs), generic and branded formulations, and home health products.  

The business is a global market leader in numerous APIs, including Montelukast and Loratadine, and is also a major player in the medical device sector, particularly in glucometers and blood pressure monitors under the Dr. Morepen brand. Morepen exports its goods to over 80 countries and has four manufacturing locations, including a big plant in Baddi, India.

At 12:22 pm, the shares of Morepen Laboratories were trading 3.18% higher at Rs 50.65 on NSE.

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