Moneycontrol
Last Updated : Sep 08, 2014 01:11 PM IST | Source: Moneycontrol.com

Opto, Poly Medi jump on hope of 100% FDI in medical devices

A media report suggests that the government is likely to soon permit 100 percent FDI in brownfield medical devices and equipment manufacturing projects through the automatic route.

 
 
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Moneycontrol Bureau


Shares of Opto Circuits and Poly Medicure gained as much as 12-17 percent intraday Monday on hopes of 100 percent FDI in medical devices. Poly Medicure touched a record high of Rs 810 on the Bombay Stock Exchange.


A media report suggests that the government is likely to soon permit 100 percent FDI in brownfield medical devices and equipment manufacturing projects through the automatic route.


Currently, 100 percent FDI is allowed in the pharmaceutical sector (including medical devices) in greenfield projects through automatic route, while Foreign Investment Promotion Board (FIPB) approval is needed for brownfield investments. Besides, there are riders while giving permission to brownfield investments, including that ‘non-compete’ clause would not be allowed except in special circumstances with FIPB approval. Also, FIPB has the discretion to incorporate conditions for foreign investment in all brownfield cases, at the time of granting approval.


"These riders will continue only for brownfield investments in the drugs/cosmetics and pharmaceuticals sector, while medical devices will be exempt from it," the media report said quoting unnamed sources.


Meanwhile, Poly Medicure, manufacturers of medical devices, won a 5-year long patent battle versus German firm B Braun. The European Patent Office (EPO) revoked two of B Braun’s patents and (in an interview to CNBC-TV18) Himanshu Baid, managing director of Poly Medicure, expects it to be a huge positive for the company.

At 12:59 hours IST, the scrip of Poly Medicure climbed 5.75 percent to Rs 766.75 and Opto Circuits India jumped 13.73 percent to Rs 27.75.

First Published on Sep 8, 2014 01:10 pm
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