Morepen Laboratories has signed a major ₹825 crore multi-year contract development and manufacturing organization (CDMO) agreement with an unnamed global pharmaceutical company. The deal covers end-to-end development, scale-up, regulatory support, and commercial manufacturing of high-value small-molecule APIs and finished dosage forms, significantly boosting Morepen’s international presence and long-term revenue visibility.
Glimpse:
The ₹825 crore contract spans multiple years and includes technology transfer, process optimization, clinical trial material supply, and large-scale commercial production of complex APIs and formulations. The agreement strengthens Morepen’s position in regulated markets (US, Europe) with dedicated capacity expansion at its Himachal Pradesh facilities. It is expected to contribute meaningfully to revenue growth starting FY27–28 and reflects growing global confidence in Indian CDMO capabilities for high-complexity products.
Morepen Laboratories Limited, a diversified Indian pharmaceutical company known for its APIs, finished dosage forms, and consumer healthcare products, has secured a transformative ₹825 crore multi-year CDMO contract with a leading global pharmaceutical company. The agreement was announced on February 26, 2026, following months of technical evaluations, quality audits, and commercial negotiations.
The contract encompasses the full product lifecycle — from process development and optimization to regulatory filing support (US DMF, CEP, EU filings), clinical trial supply, and commercial-scale manufacturing. It focuses on high-value, complex small-molecule active pharmaceutical ingredients (APIs) and finished dosage forms destined for regulated markets including the United States and Europe. Morepen will dedicate specific manufacturing blocks at its state-of-the-art facilities in Baddi and Nalagarh (Himachal Pradesh), which are already US FDA, EU GMP, and WHO-GMP approved.
The deal includes built-in volume commitments, milestone-based payments, and pricing mechanisms that provide long-term revenue predictability for Morepen. It also features technology transfer of proprietary processes, joint analytical method development, and continuous improvement programs to ensure consistent quality and cost competitiveness.
Morepen Laboratories CMD Sushil Suri described the contract as a validation of the company’s two-decade-long investment in complex chemistry capabilities, backward-integrated manufacturing, and regulatory compliance. He noted that the agreement marks Morepen’s entry into the high-margin, high-barrier CDMO segment for global innovator companies, complementing its existing generics and OTC portfolio.
The company will utilize part of the contract value to further expand dedicated CDMO capacity, install advanced process analytical technology (PAT), and strengthen its quality assurance and regulatory teams. This investment is expected to create additional skilled employment in Himachal Pradesh and position Morepen as a preferred partner for future high-value programs.
Industry analysts view the deal as a strong endorsement of India’s growing stature in global CDMO services, particularly for complex small molecules where cost efficiency, quality, and reliability are critical. The contract is anticipated to contribute significantly to Morepen’s revenue growth and margin improvement starting from FY27 onward, with potential for renewal and expansion beyond the initial term.
The transaction is subject to customary closing conditions and is expected to be completed within the next few months.
“This ₹825 crore CDMO contract is a proud moment for Morepen and for Indian pharma. It reflects the global trust in our quality, scale, and execution capabilities and opens the door to many more such partnerships in the years ahead.”
By
HB Team
