Akums Drugs Signs ₹1,760 Crore CDMO Agreement

On December 24, 2024, Akums Drugs and Pharmaceuticals Limited announced a major contract with a leading global pharmaceutical company. The agreement focuses on manufacturing and supplying oral liquid formulations for distribution across multiple European markets. The deal spans a 5 year term from 2027 to 2032 and is valued at approximately €200 million, equivalent to ₹1,760 crores.

Financial Terms

Akums will receive an upfront payment of €100 million (₹880 crore) upon securing regulatory approvals. This payment is intended to support product development and approval processes for Akums’ manufacturing site in India.

Manufacturing Scope and Timeline

Akums plans to initiate the European regulatory approval process for its oral liquid manufacturing site, with approvals expected by 2026. The company already operates European-approved facilities for injectables and oral solids. This expansion adds another dosage form to Akums’ European portfolio, leveraging its manufacturing capacity to meet stringent market standards.

Collaboration with Global Pharma

While the identity of the partnering pharmaceutical company remains undisclosed, it is described as a large entity with annual revenues exceeding USD 10 billion. The collaboration represents a step toward expanding Akums’ footprint in regulated international markets.

Market Opportunities

This contract marks Akums’ entry into the European CDMO (Contract Development and Manufacturing Organization) segment. With products currently manufactured in Europe, this shift to Indian production could influence global supply chains. However, specific insights into operational impacts remain limited at this stage. 

Financial & Market Performance 

In Q2 FY25, Akums reported a consolidated net profit of ₹65.20 crore, a 104.96% increase year-on-year, despite a 12.54% decline in revenue to ₹1,033.1 crore​. As of 2:30 PM today, Akums Drugs’ share price stood at ₹593.00, showcasing a decline of ₹4.90 (0.82%) for the day and a year-to-date drop of 25.53%.

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