Pharma stock jumps 5% after signing 10 yr supply agreement with Co. in US & Europe

During Thursday’s trading session, the shares of a company engaged in manufacturing and marketing of pharmaceutical formulations surged nearly 5 percent, after entering into a 10-year agreement with a leading pharma distributor and marketing company in the US and Europe. 

Price Movement

With a market cap of Rs. 664.3 crores, at 10:14 a.m., the shares of Medicamen Biotech Limited were trading in the green at Rs. 522.5 on BSE, up by nearly 4.8 percent, as compared to its previous closing price of Rs. 498.35. 

The stock has delivered negative returns of nearly 6.5 percent in the last six months, while around 2.4 percent of positive returns in the last one month. 

What’s the news

According to the latest regulatory filings with the stock exchanges, Medicamen Biotech Limited (MBL) has announced entering into a Manufacturing & Supply Agreement with a leading Pharma distributor and marketing Company operating in the US and Europe. 

The term of the agreement is 10 years, with 25 percent of the contract amount due upon signing the agreement. Under the terms of the agreement, MBL will handle the contract manufacturing of the US-based entity’s products, according to their technical specifications. 

The manufacturing facility of MBL’s USFDA-approved Oncology Unit will be utilized for manufacturing the product, leveraging its strengths in manufacturing and process R&D strengths to offer value-added custom manufacturing services to various entities. 

Also read: BlackRock backed solar stock jumps 4% after receiving order for supply of solar modules

Financials

Medicamen Biotech reported a marginal decline in revenue from operations, experiencing a year-on-year fall of nearly 3 percent, from Rs. 46.5 crores in Q3 FY24 to Rs. 45.2 crores in Q3 FY25. 

In contrast, its net profit increased during the same period from Rs. 2.03 crores to Rs. 3.5 crores, representing a growth of nearly 72.4 percent YoY. 

About the company

Established in 1993, Medicamen Biotech Limited is engaged in the business of generic finished dosage forms (FDF), oncology formulations

and research & development services to cater to the needs of the global pharmaceutical industry. It has vertically integrated facilities in terms of R&D, APIs and formulations. 

The company now focuses on oncology therapeutics & other generics with a vision to be a Global Leader in Oncology generics. 

Written by Shivani Singh 

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