Ami Organic climbs on signing multi-year agreement with Fermion

Ami Organics surged 4.71% to Rs 938 after the company said it signed a definitive multi-year, multi-tonne agreement with Finland's Fermion for supplying an intermediate for their patented product.

Fermion, a fully owned subsidiary of Orion Corporation, Finland, manufactures active pharmaceutical ingredients (APIs) and part of Orion Group. Fermion develops and manufactures APIs for Orion. Fermion also develops, manufactures and markets APIs to companies in global generic market as well as under exclusive contracts to companies focusing on new chemical entities (NCEs).

Based on the supply projection shared by Fermion, the total minimum contract value is expected to be multi-million Euro, spread across a 10-year horizon. The product is expected to start contributing meaningfully to the revenue from FY24.

Naresh Patel, executive chairman & managing director, Ami Organics, said: "I am extremely pleased to take the partnership with our existing European innovator customer to the next level with this multi-year multi-tonne contract. This reaffirms the trust our customers have in AMI, making us a partner of choice and fortifying our leadership position in the intermediate market. I am confident that we will continue to strengthen our relationship with more opportunities in the future."

Arto Toivonen, president, Fermion, said: "We are delighted to extend our partnership with AMI Organics who have been working with us well over ten years. AMI Organics' strong chemistry skills, technical expertise, and professional team makes them our trusted supplier. We believe this partnership will add further value to both the organisations."

Surat-based Ami Organics is a R&D driven manufacturer of specialty chemicals with varied end usage, focussed on the development and manufacturing of advanced pharmaceutical intermediates ('pharma intermediates') for regulated markets and generic active pharmaceutical ingredients ('APIs') and New Chemical Entities ('NCE') and key starting material for agrochemical and fine chemicals.

The company's consolidated net profit rose 9% to Rs 19.04 crore on 20.2% jump in revenue from operations to Rs 146.99 crore in Q2 FY23 over Q2 FY22.

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