Divi's Labs Bags Global Pharma Deal, Plans Rs 700 Cr Capacity Boost

The pharmaceutical company Divi's Laboratories on Friday said that it has signed a supply agreement with a global pharmaceutical company and is planning a capacity addition of nearly Rs 700 crore, according to an exchange filing.

What Is The Agreement About?

Under this agreement, the company will be manufacturing and supplying advanced intermediaries as per the commercial terms that the parties have agreed upon, Divi's Laboratories said in a regulatory filing.

Since the partnership is international in its scope, the pharmaceutical firm is also expecting meaningful revenue contribution from this long-term agreement, it added without disclosing the identity of the partner, it added.

"The company is planning for capacity addition at its manufacturing facilities with an estimated investment between Rs 650 crore to Rs 700 crore, to be funded from internal accruals," the statement said.

The firm also affirmed that the agreement will benefit the customer through assured supply and will allow Divi's Labs to further expand its presence in the custom synthesis market.

The shares of the company closed 2.07% lower at Rs 5,638.35 apiece on BSE.

On April 17, the company's shares on BSE closed 2% lower at Rs 5,622 apiece. The 52-week high of the stock is Rs 6,285 and 52-week low is Rs 3,641 and the market capitalisation of the stock is Rs 1.5 lakh crore.

About Divi's Laboratories

Divi's Laboratories Ltd is an Indian multinational pharmaceutical company and producer of active pharmaceutical ingredients and intermediaries, headquartered in Hyderabad.

The company manufactures and custom synthesizes generic APIs, intermediates.

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