Pharmaceutical entity Morepen Group, owner of Burnol ointment, said on Wednesday it will get $100 million funding (about Rs 750 crore) from Switzerland-based private investment firm Corinth Group.
The funds will be used for expanding its diagnostics device business and research and development facilities, Morepen said in a filing.
Morepen, which produces blood pressure monitors, nebulisers, and thermometers, said that Corinth would be allotted 58.50 million new equity shares on a preferential basis, following regulatory and shareholder approval.
“The move by Corinth reaffirms our position as a market leader in Indian healthcare and the scope and scale and potential of the online generics market,” said Sushil Suri, chairman and managing director of Morepen Laboratories.
Suri added that Corinth was also investing in its multi-speciality hospital and online generics business.
Andreas Matsas, CEO of Corinth Capital Fund, said, “We are bullish about the Indian market and have already started the process of setting up a dedicated full-service office in Delhi, through a wholly owned subsidiary which will be functional in May. We are actively working towards setting up an AIF (alternative investment fund), in line with Indian regulatory requirements, to cater to the Indian market. Our investment in Morepen Group establishes Corinth’s long-term commitment to the Indian market, with ongoing investments of another $200 million in agri and logistics sectors undergoing due diligence.”
Morepen, founded in 1984, has a presence across 82 countries. Its brands include Dr Morepen and Gubb.
Recently, another pharma development came into the spotlight.
Five days ago, VCCircle reported that Sanofi India Ltd, local unit of the French drugmaker, is in advanced discussions to sell a non-core portfolio of over-the-counter drugs to a domestic pharmaceutical company.