The Board of Morepen Labs has approved the point-of-care (POC) medical devices business into a wholly-owned subsidiary.
In a statement released today, the company said that it is engaged in pharmaceuticals business comprising the manufacturing and sales of active pharmaceutical ingredients (APIs), finished formulations and point-of-care (POC) medical devices. POC medical devices business has also developed a strong trust and bond with customers and has gained market leadership in India.
The statement also said that in the recent few years, POC medical devices business has grown exponentially and has gained a high market share. 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, it plans to carve out the business into a separate wholly-owned subsidiary both for building teams to manage the scale of operations of large and fast-growing business and unique features of POC business.
It added that the medical devices business is more focused on digital and biological sciences and requires more marketing efforts to increase its reach and penetration in the Indian market.
After hiving off the medical devices business into a wholly-owned subsidiary company, a separate dedicated management will work for the development of this business in a 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, backward integration of core technologies like making enzymes/proteins, and develop a data lab for connected devices.