Ami Organics Ltd. has agreed to supply additional advanced pharmaceutical intermediates to a subsidiary of Finland-based Orion Corp.
Based on the supply projection, the total minimum value of the contract with Fermion is expected to be "multi-million dollars, spread across (a) multi-year horizon", according to an exchange filing by the specialty chemical manufacturer.
The product is expected to start contributing meaningfully to revenue in fiscal 2025. The time period for execution of the project is three years, with automatic renewal for additional terms of two years each.
Ami Organics signed its first agreement with Fermion in November 2022 for the supply of an advanced pharmaceutical intermediate. This agreement is in addition to the previous agreement and increases the total value of the contract, it said.
Shares of Ami Organics closed 1.25% higher at 1,297.1 apiece, compared to a 0.44% rise in the benchmark NSE Nifty 50.
The stock has gained 34.7% on a year-to-date basis. The relative strength index was at 51.65, implying that the stock may be overbought.
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