Akums Drugs has signed up for a 'strategic collaboration' with a leading global pharma company to supply select oral liquid formulations to the European market. After an initial spurt following the announcement on December 24, the shares fell by more than 2% in the trading session. Akums Drugs share price were higher by over 4.33% from previous day's closing price on December 23.
The composite value of the CDMO agreement is around Rs 1,760 crore, or Euro 200 million, and the project has been secured with an upfront payment of Rs 880 crore (Euro 100 million).
"This opens doors for us to further expand our footprints in regulated markets and replicate the domestic CDMO success globally," Sanjeev Jain, Managing Director of Akums said.
The commercial supply of these formulations from Akums will begins in 2027, and last till 2032, said the company. Akums Drugs will also initiate the process of seeking approvals from Europe for its oral formulations manufacturing site. Akums group will receive an upfront payment for product development and site approval from authorities. As part of the agreement, Akums will make and supply a 'globally-renowned brand' of oral liquid formulation, which will be marketed across Europe by 'one of the largest' multi-national pharma companies. Akums has not revealed further details of the client or the product, but said that the entity clocks over $10 billion in revenue.
"The approval of the site and the product dossiers is expected to be received by 2026," the statement by Akums said. The pharma company already has two of its sites, for Injectable and Oral Solids, approved by European regulators.
These products are currently being made in Europe and the contract is being seen as a significant step for the company to seek other similar tie ups. "Manufacturing these products in India opens further collaboration opportunities with other global pharma companies to optimize their manufacturing costs and make their supply chain robust," said Sanjeev Jain, Managing Director of Akums.
Akums already has a Europe-approved facility to supply tablets, hard gelatine capsules, sachets, ampoules, vials, eye-drops and dry powder injection. This latest agreement adds one more dosage form in the company's portfolio.
The company has a market capitalisation of over Rs 9,600 crore, and since listing in August 2024, the shares of Akums Drugs are down by 27%.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
