Jubilant signs long-term supply pact with global firm

The firm claimed it could earn over $100 mn (over Rs 450 cr) in next three years from the deal.

Drug firm Jubilant Life Sciences Ltd (JLSL) said it has signed a long-term supply agreement for an undisclosed product with a global firm,claiming it could earn over USD 100 million (over Rs 450 crore) in the next three years from the deal.

“The total contract is valued at over USD 80 million to be supplied in three years from the quarter April June 2012.

This contract has a minimum volume ‘take or pay’ commitment and has an opportunity to go over USD 100 million,” JLSL said in a statement.

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The company,however,disclosed neither the name of the international life science firm nor the name of the product for which it has signed the supply contract citing

confidentiality clause.

JLSL claimed it has already received advance payment from the global firm but did not disclose the amount.

“This product has a huge demand in the market which is vindicated by the release of advance payment by the customer on the signing of the contract,” it said.

The product under this contract is based on an in-house developed technology,integrated with captively produced raw material resulting in competitive advantage both in terms of cost of production and capital investment,JLSL said.

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“The company continues to see strong traction in the proprietary products business and expects to sign a few more contracts during the year which will further drive the momentum in revenues and profitability,” it added.

Shares of Jubilant Life Sciences today closed at Rs 200.10 on the Bombay Stock Exchange,down 0.02 per cent from its previous close.

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