Morepen Laboratories Limited: Transforming to a Healthcare Company
Vasant Sivaraman, Suresh Lalwani, and Rohit Jalan
S P Jain Institute of Management & Research, India
Volume 3: 2007, pp. 23-50; ABSTRACT
Set in India in 2002, the case calls for an assessment of the business direction in which Morepen Laboratories Ltd (MLL) is headed. Under the direction of Sushil Suri, the company was poised for a transformation from being a bulk drug pharmaceutical company to an integrated healthcare company. Advised by leading global consultants, MLL was ahead of its time in stepping into exciting growth sectors. At the same time, the core business was on the verge of large payoffs in a blockbuster market where the patent of the innovator was due to expire.The case offers an opportunity to examine the business strategy of the active pharma substance (loratadine) including elements relating to ‘industry analysis’, competitive positioning, sustainability, commitments and capabilities. The bold moves by MLL to diversify into new business present a canvas to assess the corporate strategy at work. The case also affords scope for financial statement analysis, financing alternatives and capital structure deliberations.
.jpg)
