Mangalam Drugs & Organics has entered into a Technology Transfer Agreement with a $70 Million leading pharmaceutical company / group in Nigeria, Africa region, for providing them in-house developed technology. The company will provide an in-house developed technology for manufacturing certain Anti-Malaria Active Pharmaceutical Ingredients (APIs) on limited, nontransferable and exclusive license basis for certain agreed territory.
The company will also provide consultation and relevant designs for setting up an API manufacturing facility for manufacturing of the said APIs, for which the company is one of the leading manufacturers. It is expected to be a world class API facility and one of its kind in Africa region. The said manufacturing facility is expected to become operational in coming 15 to 18 months. Apart from the agreed fixed consideration for the technology transfer, the company would also be entitled to receive a 2% royalty on sales for the next 20 years. The company has received an advance/token payment of $500,000 towards the agreed fixed consideration, which is reflected as an advance in the books of accounts of the company for the quarter ending June 30, 2021.
Mangalam Drugs and Organics is an India-based company engaged in the manufacturing of chemicals, such as active pharma ingredients (API) perfumery, disperse dye intermediates, bulk drugs and bulk drugs intermediates. The Company’s segments include bulk drugs, and chemicals and others.