Shares of Morepen Laboratories jumped 14.99% to close at Rs 45.11 on the NSE on February 23, gaining Rs 5.88 during the session after the company announced a major global contract win. The stock has now rallied nearly 30% in the past two trading sessions, reflecting strong investor interest following the development.
The pharmaceutical company said it has secured a multi-year contract development and manufacturing organisation (CDMO) mandate worth approximately Rs 825 crore (around $91 million) from a leading global pharma major.
Expands into high-growth CDMO segment
With this deal, Morepen Laboratories is strengthening its presence in the fast-growing CDMO segment, which is increasingly becoming a strategic focus area for global pharmaceutical companies looking to consolidate supplier networks.
Commenting on the development, Chairman and Managing Director Sushil Suri said, “We view CDMO as a natural extension of our established API strengths, creating additional avenues of scale, stability and long-term value creation while continuing to reinforce our core businesses.”
The company added that it is evaluating capacity expansion and technology investments in line with its expanding CDMO opportunity pipeline. The move comes amid rising global demand for integrated development and manufacturing partnerships.
Strategic growth momentum
The Rs 825 crore mandate marks a significant step in Morepen’s transition from a pure API-focused player to a more diversified pharmaceutical manufacturing partner. The expansion into CDMO is expected to enhance revenue visibility and provide long-term growth stability.
The sharp rally in the stock over the last two days suggests that markets are pricing in the potential scalability and recurring revenue opportunities from the global contract.
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