Aurobindo Pharma inks pact with MSD for biologics contract manufacturing

3 Jun 2024 , 03:29 PM

Aurobindo Pharma’s shares rose over 4% in trading on June 3 after the company’s wholly-owned subsidiary, TheraNym Biologics, signed a master service agreement with Merck Sharpe & Dohme Singapore for biologicals’ contract manufacturing.

At around 3.14 PM, Aurobindo Pharma was trading 3.55% higher at ₹1,227.80 per piece, against the previous close of ₹1,185.70 on NSE. The counter touched an intraday high and low of ₹1,230 and ₹1,205.55, respectively.

According to the deal, TheraNym will create biologics for Merck Sharpe for both domestic and foreign markets.

In addition, Aurobindo Pharma will spend ₹1,000 Crore to establish a biologics manufacturing facility in Borapatla, Telangana. This facility will include large-scale bioreactors for mammalian cell culture products and a vial filling isolator line capable of producing commercial medicinal products at a rate of 25-30 million vials per year.

TheraNym will develop the manufacturing facility, manufacture the products, and supply to MSD as per the arrangement, which will kick off by FY27, said Aurobindo Pharma in its filing with the bourses.

These initiatives by the drugmaker to get biologics contract manufacturing deals are aimed at seizing the originator biologics industry, which is now valued at around $300-350 billion.

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