Pharma stock jumps over 4% after signing long-term supply deal with global pharma company

This leading Multinational Pharmaceuticals stock is in focus as it jumped close to 5 percent following its announcement of forming an agreement with another global pharma company.

Share Price Movement

With a market capitalization of Rs. 1,54,881 Crore, the stock of Divis Laboratories opened at Rs. 5,869, up by 4.09 percent from yesterday’s close, and after opening, it made a high of Rs. 5,905, up 4.72 percent. Additionally, the Yearly return for the stock is 56 percent, and the past 5-year return is an impressive 140 percent.

Update from the Company

Divis Lab has formed an agreement with a global Pharma company for a long-term manufacturing and supply agreement for the Manufacturing and supply of advanced intermediates.

The company stated that they expect meaningful revenue contribution from this long-term agreement, and they are planning a capacity addition at their manufacturing facility with an estimated investment of Rs. 650 Crore to Rs. 700 Crore, to be funded from internal accruals. Divis also stated that there is no upfront payment involved in this agreement. 

Also read: Bulk Deal: Stock jumps 3% after FII acquires fresh stake worth ₹11 Cr in the company

Financial Highlights

The company reported a 25.01 percent YoY increase in revenue from Rs. 1,855 Crore in Q3FY24 to Rs. 2,319 Crore in Q3FY25. On a QoQ basis, the company reported a decrease of 0.81 percent in revenue from Rs. 2,338 Crore in the previous quarter.

Their Net profit saw an increase of 64.52 percent YoY from Rs. 358 Crore to Rs. 589 Crore for the same period. On a QoQ basis, the company reported an increase of 15.49 percent in Net profit from Rs. 510 Crore in the previous quarter.

About the Company

Divis Lab, established in the year 1990, is a leading manufacturer of Generic APIs, Nutraceutical Ingredients, and offers Custom Synthesis of APIs to big Pharma.  With over 31 years of experience and over 17,000 employees, the Company has 3 R&D Centers and 3 Manufacturing Units, and 3 different business units.

Written By Abhishek Das

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