Akums Drugs, Zambia Govt Ink USD 50 Mn Medicine Supply Deal, Pharma Plant by 2028

Published On 2025-08-26 12:18 GMT   |   Update On 2025-08-26 12:18 GMT
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New Delhi: Akums Drugs and Pharmaceuticals Ltd. has entered into a Framework Agreement with the Government of the Republic of Zambia (GRZ) to establish a pharmaceutical manufacturing facility in the country. The move marks a significant step in strengthening Zambia's local drug production capacity while expanding Akums' footprint in Africa.

According to the filing, the facility will be set up under a joint venture structure, with Akums holding a 51% majority stake and a nominated Zambian state entity holding the remaining 49% stake. The plant is expected to begin commercial manufacturing in 2028, producing oral solids, liquids, injectables, and beta-lactam products.

Until the new unit becomes operational, the Zambian government has committed to purchase medicines worth a minimum of USD 50 million (USD 25 million annually) in 2026 and 2027 from Akums’ Indian facilities through the joint venture company.

The project is aligned with Zambia’s national health programs, aimed at enhancing access to essential medicines, building local production capabilities, and reducing import dependence. The venture also plans to export medicines to neighboring African nations including Zimbabwe, Namibia, Botswana, Malawi, Tanzania, and Mozambique.

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As part of the agreement, Akums will provide technology transfer, know-how, and technical expertise to the joint venture. Ancillary agreements—including the Supply Agreement, Joint Venture Agreement, and Technology Transfer Agreement—are expected to be finalized by September 2025.

Commenting on the development, Akums stated that this expansion will allow the company to “capture sizeable business opportunities in African countries while contributing to strengthening healthcare infrastructure in Zambia.”

Also Read: Akum Pharma Asked to Submit Safety Data for Alzheimer's Drug Combo In Elderly Indian Patients

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