Shares of Morepen Laboratories Limited gained over 15% on Monday, February 23, following the announcement of a significant contract win. According to reports from CNBC TV18, the company has secured a multi-year Contract Development and Manufacturing Organisation (CDMO) mandate worth approximately ₹825 crore from a leading global pharmaceutical company. This represents one of the largest single CDMO contracts in the company's history, marking a step-up in its global manufacturing scale. In a press release filed with the exchanges, Morepen confirmed that supplies under the agreement are expected to commence within the next four to five months, with execution scheduled through the first quarter of the following financial year, subject to customary operational and regulatory processes.
The CDMO platform is designed to support structured, multi-year supply programmes, offering integrated development-to-commercial manufacturing capabilities. As reported by CNBC TV18, the company is also evaluating capacity enhancement and technology investments aligned with its expanding CDMO opportunity pipeline. The engagement builds on Morepen's existing active pharmaceutical ingredient (API) manufacturing platform and its regulatory accreditations, including approvals from the US Food and Drug Administration (USFDA), WHO-GMP and European authorities.
Chairman and Managing Director Sushil Suri described the mandate as an important milestone in the evolution of Morepen's manufacturing platform. According to CNBC TV18, Suri stated that the contract reflects the confidence global customers place in the company's quality systems, regulatory track record, and execution capabilities. He emphasized that CDMO represents a natural extension of the company's established API strengths, creating additional avenues of scale, stability, and long-term value creation. Suri added that the company views CDMO as a natural extension of its established API strengths, creating additional avenues of scale, stability, and long-term value creation while continuing to reinforce its core businesses.
As of February 23, 2026, Morepen Laboratories shares were trading at ₹45.28 on NSE, representing a 15.42% gain from the previous close of ₹39.23. The stock has demonstrated strong momentum with a 17.46% gain over the last 5 trading sessions. The company's market capitalization stands at ₹2,481.13 crore with a current traded volume of 11,93,11,022 shares. The stock's P/E ratio of 20.58 compares favorably to the sectoral P/E of 44.11, indicating potential undervaluation in the current market conditions.
Morepen operates as a vertically integrated pharmaceutical and healthcare company, supplying APIs, branded generics, medical devices and consumer wellness products across more than 90 countries. Following the announcement, shares were trading 14.58% up at ₹44.95 as of 9.36 am, with the stock having surged 31.55% in the past month. The company's total operating revenue for the year ended March 31, 2025, stands at ₹1,554.54 crore with equity capital of ₹109.58 crore. The company's engagement builds on its existing active pharmaceutical ingredient (API) manufacturing platform and its regulatory accreditations, positioning it well for this significant global contract.
