Akums Group has entered into a long-term agreement with a global pharmaceutical company to manufacture and supply formulations for the European market.
The deal is valued at approximately ₹1,760 crore. As part of the agreement, Akums will receive an upfront payment of ₹880 crore for product development and approval of its site by European authorities.
Scope of the Agreement
Under the partnership, Akums, a contract manufacturing and development organization (CDMO), will produce multiple SKUs of oral liquid formulations.
The products will be marketed by the partner company across various European countries.
The collaboration aligns with Akums’ strategy to expand its presence in Europe and other regulated markets while focusing on local manufacturing.
Enhancing Domestic Manufacturing for Global Markets
The agreement is expected to significantly boost Akums’ domestic manufacturing capabilities and help the company tap into global markets.
The company will begin commercial production of the contracted products in 2027 and continue it through 2032.
European Facility Approval Process
To meet the agreement’s requirements, Akums Group will initiate the European approval process for its oral liquid manufacturing facility.
The company aims to secure both site and product dossier approvals by the end of 2026. Akums currently operates two European-approved facilities for injectables and oral solids.
Expanding Global Footprint
Sanjeev Jain, Managing Director of Akums, noted, “The partnership opens doors for Akums to further expand its footprint in regulated markets. It also allows the company to replicate the success of its domestic CDMO operations globally.”
Jain emphasized that manufacturing these products in India would lower costs. He added that it would also create additional collaboration opportunities with other global pharmaceutical companies.
As reported by thehindubusinessline.com, Akums already operates European-approved facilities. These facilities produce tablets, hard gelatin capsules, sachets, ampoules, vials, eye drops, and dry powder injections.
