Morepan Labs hits a new high

Morepan Laboratories hit a new high today at Rs.29.40 and remains some 16% higher over yesterday’s close of Rs.25.25. Volumes are also pretty robust over 2.5 times.

The company announced today morning that it has received the USFDA OK for its API or bulk drug, Montelukast Sodium. This means that the drug can now be sold in the USA.

The company has stated this is an over Rs.2000 crore market in USA alone and it expects to begin the first commercial dispatch from Q2FY19.

Morepan is one of the largest producers of Montelukast in the world and is a market leader in India and over the next 3-4 years, it expects sales from this API to be around Rs.500 crore.

The patent for the drug has expired in all the markets worldwide. In US, the product patent got expired in 2012 and subsequently process patent expired in 2014.