Drug maker Jubilant Organosys today said it has signed a $51 million (nearly Rs 235 crore) research and manufacturing contract with an unnamed US-based firm.
The company has signed a long-term agreement in contract research and manufacturing services (CRAMS) segment with a US life sciences company, Jubilant Organosys said in a filing to the Bombay Stock Exchange (BSE).
The company, however, did not disclose the name of the US company citing confidentiality.
"This is a take or pay contract with agreed quantities. Further, the company is in discussions to increase the contract to more than 2.5 times," it said.
The product under the contract is based on in-house developed technology, integrated with captively produced raw materials resulting in competitive advantage both in terms of cost of production and capital investment, it said.
"The company continues to see strong traction in the CRAMS business and expect to sign a few more contracts during the year," it added.
Shares of Jubilant Organosys today closed at Rs 352.10 on BSE, up 6.20 per cent from its previous close.