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NEW DELHI, March 10

MOREPEN Laboratories Ltd (MLL) has received the green signal for its global depositary receipts (GDR) issue. At the company's board meeting here on Monday, the approval was given for its GDR issue, besides a decision being taken to spin off its wholly-owned subsidiary, Dr Morepen Ltd.

MLL has already filed offer documents at the Luxembourg Stock Exchange, where it is at advance stages of approval, according to a company release here. The proceeds of the issue will be used in the operations and growing working capital needs of the company and partly for debt retirement. Analysts point out that the company has a debt of about Rs 600 crore.

Meanwhile, the company has also decided to spin off its wholly-owned subsidiary, Dr Morepen Ltd into a separate entity. MLL would focus on its core business of pharmaceuticals - bulk drug, formulations and research and development activities. Dr Morepen, the fast-moving health goods company, would meet future investments and targets on its own.

Mr Sushil Suri, Chairman and Managing Director, MLL, said that the rationale behind spinning off Dr Morepen was: "MLL would focus on its core businesses of pharmaceuticals, concentrating on the filing of Drug Master Files for high value molecules like Desloratadine and Abbreviated New Drug Applications (ANDA) to foray into the US generics market."

Dr Morepen, launched in July 2001, had grabbed headlines for its acquisitions of antiseptic cream Burnol, retail-chain Lifespring and cough and cold brand Lemolate. It will mobilise future investments into its over-the-counter and retail businesses and may exercise various options of raising funds through equity and debt route. Dr Morepen expects to clock a sales turnover of Rs 32-33 crore this fiscal, besides breaking even next fiscal.

Directors resign

MOREPEN informed the Bombay Stock Exchange on Monday that two of its directors - Mr Sanjay Suri and Ms Kanti Suri - have resigned.

According to company sources, Ms Kanti Suri, a whole-time director with the company, is also the mother of the present CMD. She is said to have resigned due to old age. However, Mr Sanjay Suri, who was Director-Operations, could well be tipped to head Dr Morepen, sources said.

In fact, only in December 2002, Mr Kartik Raina, the then Managing Director of Dr Morepen, had resigned. Subsequently, Mr Aravind Nagarajan, CEO-Retail of Dr Morepen Lifespring, took over the reins of Dr Morepen too.

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