Morepen Group seals Rs 750 Cr investment to expand diagnostic biz

The Board of Directors of Morepen Laboratories, based in New Delhi, has approved the investment proposed by Corinth Group, a global private investment Group, headquartered in Switzerland, to the extent of $32.5 million in the parent company, Morepen Laboratories, out of a total $100 million (Rs 750 crore approx) investment in the promoter group, subject to the approval of the shareholders and other regulatory bodies. Following shareholder and regulatory approval, Corinth would be allotted 58.50 million new equity shares on a preferential basis. This shareholding would equate to a 9.41 per cent equity stake in the Company on a fully expanded capital base. The balance of $67.50 million would be in the promoter group companies. The funds would be used in the expansion or scaling up of the company’s R&D centre, facilities to meet the significantly enhanced Active Pharmaceutical Ingredient (API) demand, a market size of $40 billion, that Morepen has in the pipeline for the next 3 years. The investment will also be used in world-class diagnostics facilities including the manufacture of critical inputs/ components/enzymes to meet regulated market standards.