Divis Labs jumps on signing long-term manufacturing pact with global pharma major

Divi's Laboratories climbed 3.50% to Rs 5835.95 after the company said it inked a long-term manufacturing and supply agreement with a leading global pharmaceutical company.

In a regulatory filing on 18 April 2025, Divi's stated that the agreement pertains to the manufacturing and supply of advanced intermediates. While the name of the partner remains undisclosed due to a confidentiality clause, the company confirmed that the deal is international in scope and does not involve any upfront payment.

Divi's expects "meaningful revenue contribution" from this partnership over the agreement's tenure. To support this new business, the company is planning a capacity expansion at its manufacturing facilities, with an estimated investment between Rs 650 crore and Rs 700 crore. The expansion will be fully funded through internal accruals.

The agreement, while not falling under related party transactions, aligns with the companys strategy to broaden its custom synthesis offerings.

Divi's is engaged in manufacturing of generic APIs, custom synthesis of active ingredients for innovator companies, other specialty chemicals and nutraceuticals. The company is focused on export markets within the domain of its capabilities.

Divis Laboratories' consolidated net profit surged 64.53% to Rs 589 crore on 25.01% rise in revenue from operations to Rs 2,319 crore in Q3 FY25 over Q3 FY24.

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