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Hikal hits the roof after 10-year multi product deal

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Hikal hit an upper circuit of 10% at Rs 313.65 after the company said it signed a 10-year multi product deal with a leading global pharmaceutical innovator company.

The contract entails the development and supply of a portfolio of niche APIs over a period of 10 years. The development will start this year and commercial supplies will commence post successful development and plant commercialisation estimated to be in FY 2024 onwards. With this deal, Hikal is entering into a niche area of chemistry and products thereby bolstering its animal health vertical. Hikal and its customer will be jointly investing at its Panoli, Gujarat site to setup a multipurpose manufacturing asset for manufacturing of these APIs.

Commenting on this development, Sameer Hiremath, chief executive officer (CEO) of Hikal, said: "We are very excited to be working with one of the leading global innovator pharmaceutical companies who have entrusted us to supply them with a strategic portfolio of APIs. We worked very closely with our customer to provide them a sustainable long-term competitive solution for their product portfolio from early-stage development to commercial supply. Hikal and our customer will be partnering in setting up a manufacturing facility to maintain security of supplies for the next ten years. We are seeing multiple opportunities from several new and existing customers who are looking to diversify and de-risk their existing supply chain."

Hikal's consolidated net profit jumped 42% to Rs 40.28 crore on a 17.7% increase in net sales to Rs 462.10 crore in Q3 FY21 over Q3 FY20.

Hikal is a long-term partner to companies in the pharmaceuticals, crop protection, and specialty chemicals industry. The company is in the business of supplying research services, active ingredients and intermediates, manufactured using stringent global quality standards, for its global customers.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, May 05 2021. 10:54 IST