In Tuesday’s trading session, the shares of one of the leading Pharma stocks specialised in contract development and manufacturing (CDMO) services jumps upto 5 percent following the agreement worth ~Rs. 1,760 with a leading global pharma company.
Price action
With a market capitalization of 9,411.37 Crores on Tuesday, the shares of Akums Drugs & Pharmaceuticals Limited is up by 4.7 percent making a high of Rs 626 compared to its previous closing price of Rs 597.90.
What Happened
Akums Drugs & Pharmaceuticals Limited specialises in contract development and manufacturing (CDMO) services.
Akums Drugs & Pharmaceuticals Limited has signed a long-term agreement with a leading global pharmaceutical company to manufacture and supply oral liquid formulations for the European market, with the total deal valued at approximately €200 million (Rs. 1,760 crores), including an upfront payment of €100 million (Rs. 880 crores) for product development and site approval.
The agreement, running from 2027 to 2032, involves Akums manufacturing multiple SKUs for the European market, with European regulatory approvals for its oral liquid manufacturing site expected by 2026. This collaboration marks a key step in Akums’ strategy to expand into European and other regulated markets, leveraging its expertise in manufacturing and R&D.
About the company
Akums Drugs and Pharmaceuticals Limited is a leading Indian pharmaceutical company that offers a wide range of high-quality pharmaceutical products across various dosage forms, including tablets, injectables, oral solids, liquid formulations, and more.
The company operates multiple state-of-the-art manufacturing facilities that are approved by major global regulatory bodies such as the US FDA, EMA, and WHO, ensuring the highest standards of quality and compliance.
Akums works with leading multinational pharmaceutical companies, offering end-to-end services ranging from research and development (R&D) to the commercial manufacturing of finished dosage forms.
Shareholding Pattern
Akums Drugs & Pharmaceuticals Limited has a well-diversified shareholder structure. The promoters hold a majority stake of 75.26 percent in the company, Foreign Institutional Investors (FIIs) own 7.34 percent, while Domestic Institutional Investors (DIIs) hold 7.52 percent and the remaining 9.88 percent of the company is held by the public.
Financials
The company’s revenue declined by 11.9 percent from Rs 1,188.02 crore to Rs 1,046.56 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 31.81 crores to Rs 65.21 crore during the same period.
Key Financial ratios
Akums Drugs and Pharmaceuticals Limited has an Return on Equity (RoE) of 9.8 percent and a Return on Capital Employed (RoCE) of 7.51 percent. Furthermore, the company’s debt-to-equity ratio is 0.19.
Written by Sridhar J
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