Shares of Aurobindo Pharma Ltd were trading 3% higher on 3 June after the company’s wholly-owned subsidiary, TheraNym Biologics, signed a master service agreement for contract manufacturing of biologicals with Merck Sharpe & Dohme Singapore. 

As a part of this agreement, TheraNym will produce biologics for both domestic and international markets on behalf of Merck Sharpe.

Furthermore, TheraNym Biologics will also spend Rs 1,000 crore to set up a biologics manufacturing facility at Borapatla in Telangana. This facility will feature large-scale bioreactors for mammalian cell culture products and a vial-filling isolator line capable of manufacturing commercial drug products at a rate of 25-30 million vials annually.

In its filing, the company added, “TheraNym will build the manufacturing facility, manufacture the products, and supply them to MSD as per the arrangement, which will kick off by FY27.”

Dr. M Muralikrishna Reddy Makkapati, the leader of Aurobindo’s biologics division, announced that the company will produce a biologic product using their new facility, which is equipped with fill and finish capabilities. Although the specific details of the product were not disclosed at this time, it was emphasised that the investment of up to Rs 1,000 crore demonstrates the company’s dedication to advancing in the biologics field.

At 3:30 pm, the shares of Aurobindo Pharma closed 3.74% higher at Rs 1,230 on NSE.