Morepen Laboratories Transfers Medical Devices Business to Subsidiary via Slump Sale

New Delhi: In a strategic move to streamline its operations and tap into the growing medical devices market, Morepen Laboratories has approved the transfer of its entire medical devices business to its newly incorporated subsidiary, Morepen Medtech.

As per a regulatory filing with the Bombay Stock Exchange (BSE), the Board of Directors has given its nod for the slump sale, subject to shareholder and regulatory approvals. The proposed transaction is expected to be completed by September 30, 2025, after meeting all necessary conditions outlined in a Business Transfer Agreement (BTA).

According to the proposal, the consideration for the slump sale will be determined based on an independent valuation report, which will cover key assets, including the building, plant, machinery, and liabilities. The subsidiary, Morepen Medtech, has been set up specifically to handle the company's medical devices operations, with majority ownership stakes held by Morepen Laboratories.

This strategic move is in line with Morepen Laboratories' strategy of optimizing its resources and focusing on emerging market demands. By handing over the medical devices business to a specialized entity, the company aims to enhance efficiency and improve its competitive edge in the market.

The Board meeting was held on January 14, 2025, after detailed deliberations on the transaction. Following the approval, the company's directors and officers have been authorized to finalize and execute the BTA, along with other related agreements. The details of the BTA will be disclosed once finalized.

As the process moves forward, investors can expect further updates, including the valuation report and final regulatory clearances. This strategic decision marks a significant milestone for Morepen Laboratories as it seeks to navigate the evolving landscape of the medical devices industry.

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