Shares of Akums Drugs and Pharmaceuticals Ltd. rallied 5% to a day’s high of Rs 929.10 on 16th October after the firm announced it had signed an agreement with Canada-based Triple Hair Inc.

The company has signed a license and distribution agreement (LDA) with Triple Hair Inc., a company registered in New Brunswick, Canada.

Under the agreement, they have exclusive rights to further develop and market Triple Hair Inc.’s recently innovated products in India, pending regulatory approvals or necessary licenses.

The agreement also grants the company exclusive rights to use Triple Hair’s intellectual property (patents) solely for conducting studies and performing services as outlined in the agreement, as stated in Akums Drugs & Pharmaceuticals’ filing to the stock exchanges on 16th October.

They will manage the commercial strategy for promoting and offering Triple Hair Inc.’s patented products exclusively to its marketing partners and clients in the Indian market.

Sumeet Sood, the Chief Financial Officer (CFO), noted that the margins for the Contract Development and Manufacturing Organization (CDMO) business have remained around 14-15%, which is expected to continue.

At 3:20 PM, the shares of Akums Drugs were trading 3.64% higher at Rs 912.65 on NSE.

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