The Indian pharma space is buzzing, and this time, the spotlight is firmly on Morepen Labs. In a move that has sent investors into a frenzy, the Gurugram-based drugmaker announced a landmark deal that could change the company’s trajectory for years to come.
On Monday, February 23, 2026, Morepen’s stock price skyrocketed by nearly 19%, hitting intraday highs of 48.84. But what’s fueling this sudden adrenaline rush in the market?
The primary catalyst is a massive 825 crore ($91 million) multi-year contract from a leading global pharmaceutical giant. This isn’t just any order; it’s one of the largest single mandates in Morepen’s history.
The deal falls under the CDMO (Contract Development and Manufacturing Organization) segment. For the uninitiated, this means Morepen won’t just be making and selling its own drugs; it will be the specialized “factory-for-hire” for a global innovator, handling everything from development to commercial production.
The contract is a multi-year agreement that provides a steady stream of income. Morepen is moving beyond its traditional Active Pharmaceutical Ingredients (API) business into high-margin contract manufacturing. Winning a mandate of this scale proves that their facilities, already approved by the USFDA and EU, are up to world-class standards.
The company isn’t planning to sit idle. Supplies for this new global deal are expected to start within the next 4 to 5 months. To keep up with the demand, Morepen is already evaluating further capacity expansions and technology investments.
While the stock has seen a breathtaking rally, significantly outperforming the Sensex over the last month, analysts suggest that the focus will now shift to execution. Moving from a ₹325 crore formulation business toward a target of ₹1,000 crore in the next few years is an ambitious climb.
