Domestic pharma company, Hikal Ltd has entered into a long-term contract with global pharmaceutical major Pfizer Inc for producing and supplying active pharmaceutical ingredients (APIs).

Jai Hiremath, Vice-Chairman and Managing Director of Hikal said, “We are pleased to be selected as a long-term contract manufacturer by Pfizer. The agreement will have a substantial impact on our pharmaceutical business in the coming years.”

In a press release, Hikal said that its USFDA sanctioned facility at Jigani, Bangalore will manufacture the APIs.

The company has manufacturing sites at Panoli (Gujarat), Taloja and Mahad (Maharashtra). Its manufacturing processes are backed by the research centres and pilot plant facilities at Bangalore and Taloja.

For the existing year (2008-09), the company is likely to achieve a compounded yearly growth of 25-30 percent, Hikal CFO Navin Singh said

In July 2007, Hikal signed a long-term deal with US-based Alpharma Inc for supply of a bulk drug for a veterinary product.

Following the declaration of the agreement, Hikal’s shares ended, on Monday, after making a gain of 7.5% at Rs 492.50. The shares also touched a high of Rs 512.95 on the BSE. The stock has gained around 20 percent in the last 30 days, and struck a 52-week high of Rs 588 on July 19, 2007