Ami Organics Signs Deal With Fermion For Two More Drug Intermediates
The new intermediates will be used in captive consumption for manufacture of intermediates Ami signed to produce for Fermion earlier.
Ami Organics Ltd. has inked another definitive agreement with Fermion, a wholly-owned subsidiary of Finland's Orion Corp., to manufacture two advanced pharmaceutical intermediates.
The advanced pharmaceutical intermediates will be used in captive consumption for the manufacture of intermediates Ami signed to produce for Fermion earlier, an exchange filing said.
This agreement will lead to value addition to the final advanced intermediates, which will be supplied by Ami Organics to Fermion, leading to higher value of end product. This will make the company Fermion's leading supplier of key advanced intermediates.
The products will be manufactured at Ami's Ankleshwar facility in Gujarat, which was inaugurated on Dec. 14. The intermediates are expected to start contributing meaningfully to the revenue from FY25.
Ami Organics has already signed two agreements with Fermion in November 2022 and September 2023, for supply of two advanced pharmaceutical intermediates. This agreement is in addition to the previous ones and further increases the total value of the contract development manufacturing organisation agreement with Fermion.
"We now have a total of three advanced intermediates for their product, which increases the total expected revenue considerably from this CDMO contract. For the previously signed advanced intermediates, we have already received the order and we will start shipping them out from the Ankleshwar facility from Q4 FY24. This will gradually translate to the revenue starting from Q4 FY24," Naresh Patel, executive chairman and managing director of Ami, had said in the Q2 and H1 FY24 earnings call.
“I am happy to inform you that we continue to strengthen our relationship with our esteem customer – Fermion, with signing of two more advanced pharmaceutical intermediates. The new agreement marks a significant stride forward in our collaboration with Fermion, showcasing our dedication for delivering more value-added products to our customers and the trust reposed on our capabilities," Patel said.
Shares of Ami Organics were trading 1.19% higher, compared to a 0.73% rise in Nifty 50 at 10:32 a.m. on Friday.
