Mangalam Drugs & Organics, a three-decade-old pharma company based in Gujarat has entered into a technology transfer agreement with a leading pharma company in Nigeria to provide technology for the manufacture of certain Anti-Malaria Active Pharmaceutical Ingredients (API), on a limited, non-transferable and exclusive basis for a certain agreed territory.

The company will help set up an API manufacturing facility which will be the first of its kind in the African region and the facility is expected to be operational in the next 15-18 months.

Mangalam Drugs & Organics has received an advance payment of US $ 500,000. Apart from the fixed cost for technology transfer the company will also receive a royalty of 2 per cent on the sales for the next 20 years.

The company has a multi-product manufacturing facility at two locations. Along with the WHO-GENEVA GMP Certification and EDQM approval for its API manufacturing plant, the company also has an agreement with the Clinton Health Access Initiatives (CHAI) under its Fight Malaria Programme for the supply of anti-malaria APIs worldwide.