The Company is engaged in pharmaceutical business comprising of the manufacture and sales of active pharmaceutical ingredients (APIs), finished formulations and point-of-care (POC) medical devices. Over-the-Counter drugs (OTC) business is already being carried on through its wholly owned subsidiary, Dr. Morepen Limited. Having established itself as a preferred generic manufacturer in the international market, the company moved aggressively up the value chain in its core API business and is also finding its niche in the finished dosages space. POC Medical Devices business has also developed a strong trust and bond with customers and has gained market leadership in India. 

In the recent few years, POC Medical Devices business has grown exponentially and has gained very high market share, thanks to the trust imposed by the customers and trade on the company’s product quality and after-sale service. In house manufacturing of the key products has given further impetus to cost reduction and fuelled the growth trajectory. Given the fast scaling up of business and mainstreaming of point-of-care business in India, the company targets a leadership position in POC business in India and for export. In light of this, the company plans to carve out the business into a separate wholly owned subsidiary both for building teams to manage scale of operations of large and fast-growing business and unique features of POC business. Given the scale the company is looking to achieve in this point of care Medical Devices business, it also plans to bring in fresh capital that makes it imperative to have a separate subsidiary to undertake this fast-expanding POC business.

The nature of said POC Medical Devices business, management, sales and marketing strategies are different than that of the typical API and Pharma business of the company. The proposed segregation will give the clarity to the working teams, trade customers and other stakeholders.

Post this spin off, the company will be able to put entire focus on its core business of active pharmaceutical ingredients (API) and Formulations. The company has got two USFDA plants of API and is exporting the drugs to over 80 countries and that is highly specialised and technical business and needs more expertise and skills in that area. On the other hand, the medical devices business is more focused on digital and biological sciences and requires more marketing efforts to increase the reach and penetration in the Indian market.

After hiving off Medical Devices Business into wholly owned subsidiary company, a separate dedicated management will work for the development of Medical Devices Business in separate independent entity. In the second phase post hive off, the Medical Devices company would go for CE Certification of its manufacturing facilities to become the hub for PoC manufacturing in India. The new entity plans to deploy more resources on the R&D, backwards integration of core technologies like making enzymes /proteins and develop a data lab for connected devices. 

The company is engaged in pharmaceutical business comprising of the manufacture and sales of active pharmaceutical ingredients (APIs), finished formulations and point-of-care medical devices (POC) (Medical Devices). Over-the-Counter drugs (OTC) business is being carried on through its wholly owned subsidiary, Dr. Morepen Limited. Having established itself as a preferred generic manufacturer in the international market, Morepen moved aggressively up the value chain in its core API business and is also finding its niche in the finished dosages space. POC Medical Devices has also developed a strong trust and bond with customers and has gained market leadership.

All the verticals have their own strengths and dynamics but the nature of businesses of all the verticals are unconnected and distinct. One of the business vertical, point-of-care Medical Devices Business, has gained critical mass and showing huge potential for its revenue growth and the management of the company believe it has enormous potential to be carved as a separate, standalone independent business