Morepen Laboratories trims gains after clarification

Morepen Laboratories rose 5.85% to Rs 26.25 at 15:15 IST on BSE after the company denied reports indicating that it may sell its over-the-counter brands to focus on active pharmaceutical ingredient and home diagnostics business as growth drivers.

The clarification was issued during market hours today, 22 September 2016.

Meanwhile, the S&P BSE Sensex was down 116.80 points, or 0.41%, to 28,656.33

On BSE, so far 38.41 lakh shares were traded in the counter, compared with average daily volume of 4.33 lakh shares in the past one quarter. The stock trimmed intraday gains. The stock surged as much as 12.7% at the day's high of Rs 27.95 so far during the day. The stock rose as much as 4.03% at the day's low of Rs 25.80 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.

The small-cap drug maker has an equity capital of Rs 89.97 crore. Face value per share is Rs 2.

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 had indicated. However, Morepen Laboratories clarified that no such negotiation has taken place.

Morepen Laboratories' net profit surged 60.4% to Rs 4.01 crore on 17.57% rise in net sales to Rs 116.72 crore in Q1 June 2016 over Q1 June 2015.

Morepen Laboratories is a pharmaceutical company having four divisions including active pharmaceutical ingredient (API), domestic formulations, diagnostics and over the counter (OTC).

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