Divis Labs inks long-term pact with global pharma firm to make, supply advanced intermediates

Divi’s Laboratories on Friday announced signing of a long term advanced intermediates manufacturing and supply agreement with a global pharma company and plans to invest atleast ₹650 crore, from internal accruals, on capacity expansion.

In a filing on Friday, Divi’s said it expects meaningful revenue contribution from the agreement. It is planning for capacity addition at its manufacturing facilities with an estimated ₹650 crore to ₹700 crore investment that is to be funded from internal accruals.

Citing a confidentiality agreement, it said the name of the customer and any quantitative information pertaining to the agreement cannot be disclosed. The agreement will benefit the customer of assured supply and the company to expand its presence in custom synthesis, Divi’s said.