Shares in Quantum Pharma PLC rose 5% to 63p as it extended its long term deal with wholesaler and distributor AAH Pharmaceuticals.
AAH is a division of Celesio UK which owns Lloyds Pharmacy and has a growing presence in the UK retail pharmacy sector.
Quantum will, via its main unit Quantum Pharmaceutical, continue to be the exclusive supplier to AAH for the next five years, together with the provisions of certain order handling, procurement and distribution services, it said.
Quantum chief executive Andrew Scaife told investors: "We are delighted to have signed this contract extension with AAH, a long term partner with whom Quantum has built a strong relationship.
"Not only is this partnership with AAH important for the group financially, such strategic relationships with our Specials division also provide a further route to market for our licensed products and medical devices from our Niche Pharmaceutical division as well as potential partners for Biodose Connect in our Medication Adherence division."
The group has four units - Quantum Pharmaceutical manufactures and supplies specials for pharmacy chains, hospitals and independent pharmacies in the UK.
UL Medicines sources and supplies unlicensed imported medicines and bespoke specials to hospitals, community pharmacies and wholesalers.
NuPharm offers outsourced manufacture for solid and liquid dose batch-made specials and niche licensed medicines.
Quantum Aseptic Services makes sterile intravenous products for named patients or in batches for private and NHS hospitals and homecare patients.