Morepen laboratories has secured a significant working capital boost through a ₹30 crore unsecured term loan facility from KEB Hana Bank. The company's Finance Committee approved this facility during its meeting held on March 10, 2026, which commenced at 6:00 p.m. and concluded at 6:45 p.m.

Loan Facility Details

The working capital term loan comes with competitive terms structured to support the company's operational requirements. The facility carries specific financial parameters designed for optimal cash flow management.

Agreement Parties and Structure

The loan agreement involves KEB Hana Bank as the lender and Morepen Laboratories Limited as the borrower. Mr. Sushil Suri, who serves as the company's Promoter, Chairman & Managing Director, has provided his personal guarantee to secure this unsecured facility. The transaction does not fall under related party transactions and involves no shareholding between the parties.

Current Debt Position

As of March 10, 2026, Morepen Laboratories maintains a clear outstanding position with KEB Hana Bank, with no existing loans from this particular lender. However, the company's total outstanding loan amount, excluding this new facility and vehicle loans along with their interest, stands at ₹164.62 crore.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure also complies with SEBI circular no. SEBI/HO/49/14/14(7) 2025 – CFD - POD2/I/3762/2026 dated January 30, 2026. The agreement was executed on March 10, 2026, and the company has informed both NSE and BSE about this development.

Purpose and Impact

The unsecured working capital term loan facility is specifically intended to support the company's working capital requirements. The 6-month moratorium period provides initial breathing room, while the subsequent 5 half-yearly installments offer a structured repayment schedule that aligns with business cash flow cycles.

Morepen Laboratories has officially announced securing a landmark multi-year Contract Development and Manufacturing Organization (CDMO) mandate worth approximately ₹825 crore (USD 91 million) from a leading global pharmaceutical major. The company disclosed this significant development through a formal regulatory filing under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations 2015.

Deal Structure and Regulatory Disclosure

The supplies under this mandate are expected to commence within the next 4-5 months, with execution scheduled through Q1 of the following financial year, subject to customary operational and regulatory processes. The order is expected to be executed within approximately 12-15 months from the date of award.

Strategic Entry into High-Growth CDMO Segment

Built on over four decades of API manufacturing expertise and regulatory credibility, Morepen's CDMO platform enables deeper collaboration with global pharmaceutical innovators through structured, multi-year supply programs. The mandate reflects the company's growing capabilities in regulated markets, supported by internationally accredited facilities including USFDA, WHO-GMP, and EU approvals.

The CDMO sector represents a rapidly growing segment within the pharmaceutical industry, driven by increasing outsourcing trends and the need for specialized manufacturing capabilities. With integrated development-to-commercial manufacturing capabilities, Morepen is positioned to support complex scale-ups and long-duration supply frameworks.

Regulatory Compliance and Transparency

The company confirmed that the contract does not fall within related party transactions and that promoters or group companies have no interest in the entity that awarded the order, ensuring complete transparency and regulatory compliance.

Management Commentary

Mr. Sushil Suri, Chairman & Managing Director, highlighted the significance of this milestone: "This mandate represents an important milestone in the evolution of Morepen's manufacturing platform. It reflects the confidence global customers place in our quality systems, regulatory track record, and execution capabilities."

He further added: "We view CDMO as a natural extension of our established API strengths, creating additional avenues of scale, stability, and long-term value creation while continuing to reinforce our core businesses."

Market Positioning and Future Outlook

Global pharmaceutical companies are increasingly consolidating supplier networks and partnering with compliant, scalable, and reliable manufacturing platforms capable of long-term supply continuity. Morepen's vertically integrated API capabilities, regulatory track record, and operational scale position it well to serve this evolving demand in the high-growth CDMO sector.

The company operates as a vertically integrated, innovation-led pharmaceutical and healthcare company delivering high-quality APIs, branded generics, medical devices, and consumer wellness products to over 90 countries worldwide. The company continues to evaluate capacity enhancement and technology investments aligned with its expanding CDMO opportunity pipeline.