Share News: Pharma company will set up manufacturing plant in this African country - keep an eye on the shares

News Topical, Digital Desk : Delhi-based pharmaceutical company Akums Drugs and Pharmaceuticals Limited on Friday informed the stock market that the company will set up a manufacturing facility in Zambia. The company said in an exchange filing on Friday that it has entered into an agreement with the Government of the Republic of Zambia, under which a manufacturing facility will be set up in Zambia for the manufacture and supply of medicines.

The company said that the facility will be set up under a joint venture (JV) in which Akum will have a 51 percent stake, while the remaining stake will be held by the Zambian government. Both parties will invest in the project in proportion to their respective stakes and advance commercial operations. The plant is expected to be completed by 2028 and will manufacture oral solids, liquids, injectables and beta-lactam products.

Zambian government will buy medicines Akum said that the Zambian government will buy medicines worth at least US$50 million (about $25 million per annum) in 2026 and 2027 from the joint venture, which will be manufactured and supplied by Akum or its subsidiary's Indian units. The company said that the project aims to support the Zambian government's national health program and enhance local production capabilities. Also, this facility will plan to export medicines to neighbouring countries in the southern part of Africa like Botswana, Malawi, Mozambique, Namibia, Tanzania, Zimbabwe etc. 

Share Performance On Friday, the company's share closed at Rs 480.90 with a decline of 0.19 per cent. In the last one year, the company's share has declined by 48.88 per cent. 

Read More: SEBI issued consultation paper for changes in rules, what are the proposals