Hikal shares, on Wednesday, rallied 10 per cent to Rs 313.65, also its new high, on the BSE in intra-day trade after the company signed multi-year contract with a leading global pharmaceutical company.
In the past one month, the stock has zoomed 97 per cent, as compared to 3 per cent decline in the S&P BSE Sensex. Till 09:26 am, a combined 975,000 equity shares had changed hands on the NSE and BSE. There were pending buy orders for around 280,000 shares on these exchanges, data shows.
“This contract entails the development and supply of a portfolio of niche APIs (Active Pharmaceutical Ingredient) 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 FY2024 onwards,” Hikal said in a press release.
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 API’s, it said.
The company’s management said 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, the management said.
Hikal is a reliable 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.