Shares of smallcap firm Hikal on Wednesday, rallied 10 percent to Rs 313.65, and touched a new high, on the BSE in intra-day trade after the company signed a multi-year contract with a leading global pharmaceutical company for the development and supply of a portfolio of niche active pharmaceutical ingredients (APIs) over a period of 10 years. The development will start this year and commercial supplies will commence post successful development and plant commercialization 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 set up a multipurpose manufacturing asset for manufacturing of these APIs, it said.
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