Divi's Laboratories inks long term manufacturing and supply agreement with global pharma company

Divi's Laboratories Limited has signed a long term manufacturing and supply agreement with a global pharma company for advanced intermediates.

Under this agreement, the Company will be manufacturing and supplying advanced intermediates as per the commercial terms agreed between the parties.

The Company expects meaningful revenue contribution from this long-term agreement. In view of the confidentiality agreement signed, we are not permitted to disclose name of customer and any quantitative information pertaining to the agreement.

The cost of capacity addition for manufacturing under this agreement is estimated to be Rs.650-750 crores, which will be funded from the capacity reservation advance proposed to be paid by the customer phasewise under this Agreement.

The agreement will benefit the customer of assured supply and the Company to expand its presence in custom synthesis.

Shares of Divi's Laboratories Limited was last trading in BSE at Rs. 6480.70 as compared to the previous close of Rs. 6538.30. The total number of shares traded during the day was 8131 in over 2498 trades.

The stock hit an intraday high of Rs. 6557.00 and intraday low of 6455.80. The net turnover during the day was Rs. 52799060.00.

Source : Equity Bulls

Keywords

DivisLaboratories INE361B01024 Pharmaceuticals Agreement Manufacturing Supply GlobalPharmaCompany AdvancedIntermediates