Divi's Labs Inks Long-Term Supply Pact with Global Pharma firm

Report states that Divi's Laboratories Ltd has passed into a long-term supply agreement pact with a global company in pharmaceuticals for the manufacture and supply of advanced intermediates. Though the partner remains undisclosed, Divi's expects a heavy influx of revenues from the alliance.

To realize the above agreement and project future growth possibilities of Divi, the company plans investing somewhere between ? 6,500- 7000 million for pharmaceutical manufacturing expansion gained through internal accruals.

This is a strategic move by Divi's Laboratories to turn itself into an important part of the global pharmaceutical supply chain and to support it with additional production capability. The company is highly regarded for its proven expertise in manufacturing Active Pharmaceutical Ingredients (Apis) and intermediates, and the history of its association with leading multinational drug companies is impressive.

Thus, the investment is expected to fulfill the need brought about by this deal, alongside enhancing Divi's ability to continue to withstand similar deals in the future, reinforcing its position in the global marketplace.

However, the announcement did not raise any cheer with the markets, with the shares of Divi's Laboratories falling by 2.07% to close at ?5,638.35 on the Bombay Stock Exchange, an indicator that may perhaps reflect just the market rather than any disappointment over the company's strategic direction.