Natco Pharma's US arm exits local drugs retail chain
Drug firm Natco Pharma today said its US-based arm K&C Pharmacy has exited from a local drugs retail chain, Nick's Drugs based in New Jersey.
"K&C Pharmacy, a general partnership firm based out of New Jersey, US, has sold its right, title and interest in a retail pharmacy outlet known as Nicks' Drugs," Natco Pharma said in a filing to the Bombay Stock Exchange (BSE).
Natco Pharma holds 75 per cent stake in K&C Pharmacy.
"This sale would not have any significant effect on the revenues and profitability of Natco Pharma," the company added.
Explaining reasons behind the sale, the company said Nick's Drugs revenues were predominantly guided by Medicaid reimbursements from the State of New Jersey, however of-late there have been significant reductions in the reimbursements because of budgetary restrictions.
After the sale, Natco now owns and operates only one pharma store 'SaveMart Pharmacy', through its wholly owned subsidiary Natco Pharma Inc in Lancaster.
The store is doing well and is not dependent on Medicaid reimbursements like Nick's Drugs, it said.
Shares of Natco Pharrma today closed at Rs 288.40 on the BSE, down 1.28 per cent from its previous close.