Shares of API player Bajaj Healthcare are higher in early trade by nearly 3% after the company signed a CDMO pact with UK/EU based company for 15 new Active Pharma Ingredients.
These new APIs are in addition to a contract for 15 molecules for the client signed earlier this year. The company informed exchanges through a filing that the new CDMO pipeline comprises of off-Patent generic APIs as well as APIs that are still under patent.
"The company is likely to enter into few CDMO deals with clients in Australia, New Zealand and South Africa, after approval of the site by the TGA," Anil Jain, Managing Director, Bajaj Healthcare said.
The management said this development reinforces company's capabilities in building 'cost-effective route' in its R&D as well as in expansion of manufacturing capabilities.
On December 6, Bajaj Healthcare had announced an approval from the Therapeutic Goods Administration (TGA), Australia for one of its sites. The regulatory nod will allow it to supply APIs to Australia & New Zealand.
India is emerging as a preferred manufacturing hub to cater to the global demand and the China+1 shift to secure supply chains is working in favour of India.
The outlook for medicine spend is sharply rising with projections of a compound
annual growth rate (CAGR) of 5-8% through 2028. This is largely driven by rapid demand expansion in emerging markets like China, India, and other Asian
countries.
Bajaj Healthcare project that the global drug spend is set to rise by over $600 billion to a total of $2.3 trillion.
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