Mangalam Drugs & Organics Ltd enters into technology transfer agreement with Nigerian Group

Mangalam Drugs & Organics Ltd has entered into a Technology Transfer Agreement with a USD 70 Million leading pharmaceutical company / group in Nigeria, Africa region, for providing them in-house developed technology.

The salient features of the said technology transfer agreement include the following:

1. The Company will provide an in-house developed technology for manufacturing certain Anti-Malaria Active Pharmaceutical Ingredients (APIs) on limited, nontransferable and exclusive license basis for certain agreed territory;

2. The Company will also provide consultation and relevant designs for setting up an API manufacturing facility for manufacturing of the said APIs, for which the Company is one of the leading manufacturers. It is expected to be a world class API facility and one of its kind in Africa region;

3. The said manufacturing facility is expected to become operational in coming 15 to 18 months; and

4. Apart from the agreed fixed consideration for the technology transfer, the Company would also be entitled to receive a 2% royalty on sales for the next 20 years.

The Company has received an advance/token payment of USD 500,000 towards the agreed fixed consideration, which is reflected as an advance in the books of accounts of the Company for the quarter ending June 30, 2021.

Shares of Mangalam Drugs and Organics Ltd. was last trading in BSE at Rs. 143.5 as compared to the previous close of Rs. 142.8. The total number of shares traded during the day was 50139 in over 2067 trades.

The stock hit an intraday high of Rs. 146.4 and intraday low of 134. The net turnover during the day was Rs. 7036055.

Source : Equity Bulls

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