Medicamen Biotech Share Price Jumps Over 9% on Signing CDMO Contract with European Firm

Medicamen Biotech Limited has announced the signing of a contract manufacturing and development organisation (CDMO) agreement with European pharmaceutical company, XGX Pharma. As part of the contract, Medicamen will develop and manufacture 6 products for XGX Pharma, which will retain the market authorisation rights in Europe.

This strategic partnership has sparked investor optimism, leading to a sharp surge of over 9% in the Medicamen share price on April 03, 2025 and trading at ₹528 at 2:04 PM.

Strengthening Presence in Regulated Markets

This development comes at a time when Medicamen is making rapid strides in global market penetration. Having secured approvals from the USFDA and the European Union for its plants, Medicamen is now eyeing further expansion into Canada and Australia, with desktop approvals filed and site approvals expected in the next 6 months.

With its capabilities in contract manufacturing, the CDMO deal aligns well with the company’s long-term strategy of becoming a key player in regulated markets. The company is also empanelled with global bodies like the UN and UNICEF, showcasing its commitment to international compliance and quality benchmarks.

Roadmap to Higher Capacity Utilisation

According to the company’s corporate presentation, Medicamen has invested significantly in expanding and upgrading its production infrastructure. Facilities in Bhiwadi and Haridwar currently operate at around 30% of their potential. However, the company aims to ramp up this utilisation to 70% by FY27-28 and 90% by FY29-30.

These efforts are intended to support the rising demand from international clients and new product registrations, particularly in high-growth therapeutic segments like oncology, cardiovascular and diabetes.

India’s Domestic Portfolio: A Strategic Focus

Back home, Medicamen is also growing its domestic presence through branded marketing, especially in chronic therapy areas. Its Indian portfolio includes over 300 SKUs and a strong doctor network of over 60,000. The company has launched its subsidiary, Medicamen Life Sciences Ltd., to further strengthen its brand presence in lifestyle-driven segments like cardiovascular and anti-diabetics.

With an expanding sales force and improved distribution across 560 headquarters nationwide, Medicamen is strategically positioned to tap into the domestic pharma market, which is expected to grow from ₹2.6 lakh crore in 2024 to ₹5.1 lakh crore by 2030.

Geographic & Product Mix Diversification

Medicamen’s growth strategy hinges on its diverse geographic exposure and robust product pipeline. In Europe, the company has filed for two marketing authorisations and entered a CDMO agreement involving seven products with a Danish partner. Meanwhile, in Canada and the US, partnerships and product filings are progressing steadily.

In emerging markets such as Africa, South America and Southeast Asia, the company has already registered over 100 products and continues to expand via definitive distribution agreements. Its product focus includes key therapies such as oncology, cardiovascular, gastroenterology, and dermatology.

Conclusion

With a sharpened focus on innovation, regulatory compliance, and strategic partnerships, Medicamen is poised for sustainable growth. The company’s shift from a largely government-supply dependent model to a research-led, globally compliant CDMO player indicates a transformation in its business model.

As it continues to tap underutilised capacity and enter high-potential geographies, Medicamen Biotech is aiming to create long-term value by aligning its R&D efforts with evolving global healthcare needs

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