Morepen Laboratories soars on reports of likely sale of OTC brands

Morepen Laboratories rose 6% to Rs 26.25 on the BSE on reports that the company may sell its over-the-counter brands to focus on active pharmaceutical ingredient and home diagnostics business as growth drivers.

On BSE, so far 10.07 lakh shares were traded in the counter, compared with average daily volume of 4.33 lakh shares in the past one quarter. The stock hit a high of Rs 27.25 and a low of Rs 26.10 so far during the day. The stock hit a 52-week high of Rs 41.80 on 5 January 2016.

The stock hit a 52-week low of Rs 13.14 on 23 September 2015. The stock had outperformed the market over the past 30 days till 22 September 2016, rising 25.25% compared with 2.54% rise in the Sensex. The scrip, however, underperformed the market in past one quarter, rising 8.3% as against Sensex's 9% rise.

As per reports, Morepen Laboratories is considering a business rejig which could lead to a potential sale of the over-the-counter brands, including antiseptic cream Burnol.

The company's OTC portfolio include Lemolate cold and cough relief remedy , Sat-Isabgol, anti-fungal and antibacterial cream Itch Beat, Fever-X, Pain-X, a face wash and 2 Cool hair oil, among other brands. Piramal Healthcare, Cipla and Zydus Cadila could be among the potential suitors, reports indicated.