 "Akums Drugs signs agreement with leading Euro Co; share price gains 5%")
Akum Drugs share price: Akum Drugs and Pharmaceuticals share price gained 4.6 per cent on the BSE in intraday trade. The stock hit a high of Rs 625.55 per share on the stock exchange on Tuesday.
Akums share price, however, pared gains later to trade in the red. At 1:00 PM, Akums shares were down 2.5 per cent to Rs 583.7 per share as against 0.16 per cent rise in the benchmark BSE Sensex index.
Akums share price rose in the stock market today after it informed the stock exchanges that the company has entered into an agreement with one of the leading global pharma companies for the manufacture and supply of selected pharmaceutical formulations in the European Market.
"Akums group will manufacture and supply multiple SKUs of Oral Liquid Formulation to be marketed in multiple European countries by the global Company," Akums said in its stock filing.
The commercial supply of these products from Akums, the company said, will commence in 2027 till 2032. The composite value of the agreement is approximately 200 million euros (Rs 1,760 crore approx).
Akums group will receive an upfront payment for product development and site approval from European authorities for the said agreement. The project has been secured with an upfront payment of 100 million euros (roughly Rs 880 crore).
The agreement is in line with Akums growth objective of expanding in European and other regulated markets.
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That apart, Akums group will also initiate European approvals of its oral liquid site which it intends to leverage to manufacture these products.
"The approval of the site and the product dossiers is expected to be received by 2026," Akum Drugs said. Notably, Akums already has two of its sites (Injectable and Oral Solids) approved by European Regulators.
Akums Drugs is India’s largest Contract Development and Manufacturing Organization (CDMO), holding a leading position in the domestic market, as per the company’s website.
In FY24, Akums’ market share by value in the Indian domestic CDMO market stood at 10.0 per cent, with a significant 30.2 per cent share by value within the domestic CDMO market.
Akums operates 15 state-of-the-art facilities producing a wide range of modern dosage forms across multiple therapeutic segments.
Akums Drugs debuted on the stock exchanges on August 6, 2024, and is listed on the BSE IPO index. Akums Drugs IPO had received a strong subscription of 63.44 times, but the shares listed at around 7 per cent premium at Rs 725 per share vs the issue price of Rs 679.
The market capitalisation of Akums stands at Rs 9,187 crore.