Morepen’s Dubai Debut: New Subsidiary Set to Power Medtech Growth

Image Source: Express Healthcare

Morepen Laboratories Limited, a top Indian pharmaceutical and healthcare firm, has announced the establishment of a new subsidiary in Dubai as a strategic move to expand its medical devices business. The development is part of Morepen's overall strategy to consolidate operations and strengthen its global presence in the rapidly growing medical devices industry.

Background and Purpose

Morepen Laboratories is setting up a new subsidiary in Dubai, mainly to concentrate on its medical devices business and facilitate international growth.
The subsidiary, Morepen Medtech, was registered on January 8, 2025, and is intended to manage the medical devices segment as an independent entity.

Ownership and Structure

Morepen Laboratories will have an 80% equity holding in the new subsidiary, and the promoter group and their relatives will hold the remaining 20%.
The initial authorised and paid-up capital of the subsidiary is INR 10,00,000, divided into 1,00,000 equity shares of INR 10 each.

Business Transfer and Transaction Details

The Board of Directors has sanctioned the transfer of Morepen's current medical devices business to Morepen Medtech through a slump sale, pending regulatory and shareholder approvals.
The deal is expected to be concluded by September 30, 2025, subject to the satisfaction of all conditions stipulated in the Business Transfer Agreement (BTA).
The slump sale consideration shall be ascertained by an independent valuation of buildings, plant, machinery, and other assets and liabilities according to the effective date's balance sheet.

Strategic Rationale

By forming a dedicated subsidiary, Morepen will be offering operational autonomy and concentrated strategy to the medical devices business, permitting increased market responsiveness and efficiency.
The decision is consistent with the strategy of the company to leverage growing international demand for medical devices and increase its footing in overseas markets, especially in the Middle East.

Market Reaction

After making the announcement, shares of Morepen Laboratories increased positively, settling at ₹67.92, a 4.65% gain on the Bombay Stock Exchange.

Sources: Market Screenes, Express Healthcare, CNBC TV18