Bajaj Healthcare Signs API Development & Supply Agreement with EU Partner

The company added that further supplies will be handled from its FDA-approved manufacturing facility in Savli, Vadodara.

Bajaj Healthcare has announced that it has entered into a development and supply agreement with a European entity for an Active Pharmaceutical Ingredient (API).

The company disclosed the agreement in an exchange filing on Friday, stating that the API will initially be supplied in small quantities to the European partner for clinical trials after development.

These trials aim to explore the API’s potential for an alternative medical indication.

“The trust placed in our company by the EU partner for sourcing clinical trial quantities highlights our development and manufacturing capabilities, as well as our compliance with Good Manufacturing Practices (GMP) at our manufacturing facilities,” Bajaj Healthcare stated.

The company added that, based on the outcomes of these trials, further supplies will be handled from its FDA-approved manufacturing facility in Savli, Vadodara.

Until the trial results are confirmed, the agreement will remain revenue-neutral for the company.

Bajaj’s Market Presence

Following the announcement, Bajaj Healthcare’s stock saw a 4.71% increase, reaching INR 396.45.

The company, a leading manufacturer of APIs, intermediates, and formulations, has a global presence in markets such as Europe, the USA, Australia, Africa, the Middle East, and South America.

In financial terms, Bajaj Healthcare reported a 14.1% increase in standalone net profit for Q1 FY25, reaching INR 8.02 crore compared to INR 7.03 Cr in Q1 FY24. Revenue from operations also rose by 1.9% year-on-year, totaling INR 132.25 Cr in Q1 FY25.

In another development, last month, as per reports Bajaj Group is planning on entering the healthcare sector with plans to establish hospitals in metropolitan areas.

This marks the conglomerate's first major diversification since former patriarch Rahul Bajaj's passing in 2022. The equity structure of this anticipated yet-to-be-named healthcare entity is still undisclosed.

Reportedly, the head of corporate strategy at Mukand, Nirav Bajaj is overseeing the project and will be leading the new venture, with phased investments based on business milestones.

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