Morepen Laboratories, based in New Delhi and known for its glucometers and blood pressure monitoring devices, plans to separate its medical devices business into a distinct unlisted subsidiary within the next 12 to 24 months to unlock value. Sushil Suri, chairman and managing director of Morepen Laboratories, stated that the medical devices segment is rapidly growing and nearing a turnover of ₹500 crore. “We anticipate this sector to grow by 25-28%, while our active pharmaceutical ingredient (API) and formulations business is projected to expand by 15-20%. There are significant opportunities in the medical devices space, particularly in glucometers,” Suri noted.
As of Monday, Morepen Labs’ stock has surged 61.5% year-to-date, reaching ₹78.7 per share on the BSE. The company reported a turnover of around ₹1,700 crore last year, with the medical devices segment contributing approximately ₹450 crore. The remaining ₹1,250 crore came from the API, formulations, and over-the-counter consumer health sectors. In Q1 FY25, the medical devices division accounted for about 30% of total revenue and is expected to grow to 35-40% over the next five years.
Suri emphasized that creating a separate entity would enhance value and clarity for investors. In August, Morepen Labs successfully completed a Qualified Institutional Placement (QIP), raising ₹200 crore with a subscription rate of 1.68 times, attracting notable global investors including Bank of America Securities Europe (BOFA), Samsung India, Citigroup, Société Générale, Nomura, BNP Paribas, Morgan Stanley, and Eminence. Proceeds from the QIP will fund capacity expansion—₹75 crore for APIs and ₹45 crore for medical devices—along with backward integration efforts.
Approximately 80% of the medical devices revenue comes from glucometer sales. The company plans a significant expansion, increasing glucometer production from 2.5 million to 5 million units per annum by FY26, and raising strip production from 500 million to 700 million units annually. Suri mentioned that with this additional capacity, Morepen will focus more on export markets, aiming to enter regulated markets like the US by FY27, given their positive track record with the FDA.
The company is also investing in research and development, with plans to create a continuous glucose monitor that will provide affordable results at ₹1,000 per month, compared to the current cost of nearly ₹1,000 per day for patients. Morepen Labs has 12 million glucometers in circulation, selling an average of 150 strips per device each year. Its competitor Roche reportedly has another 10-12 million glucometers in the market. Overall, there are about 35 million glucometers in use, while India has around 100 million potential diabetic patients.
This year, Morepen aims to sell 3 million glucometers and 450 million strips, up from 2.4 million glucometers and 360 million strips last year. Suri mentioned that the company holds a 30% market share, with the market continuing to expand.
Additionally, Morepen is investing in backward integration, sourcing printed circuit boards (PCBs) from Korea while manufacturing the rest in-house. The company is collaborating with firms in Panchkula and the southern region to produce PCBs locally and is working with a Korean partner to manufacture strips in India. Suri expects backward integration for strips to be advanced by the next financial year. Morepen has 60 acres of land in Baddi for planned expansions.
