Natco Pharma drops after Teva's offer to buy Mylan

Shares of Natco Pharma were down 2.5% at Rs 2,099 on the Bombay Stock Exchange after generic drug maker Teva Pharmaceuticals made an $40 billion offer for rival Mylan, which is Natco Pharma's marketing partner for the generic version of Copaxone.

Teva Pharmaceuticals holds the patent on Copaxone which is due to expire in September. In case the deal materialises it will mark an end to Natco Pharma's exports to Mylan thereby hurting profitability.

Teva Pharmaceutical Industries Ltd on Tuesday made an unsolicited $40 billion offer for smaller rival Mylan NV, a bold bid for growth as its lucrative Copaxone drug faces generic competition, according to a Reuters report.

The stock opened at Rs 2,212 and touched a low of Rs 2,069. At 9:50AM, over 179,000 shares were traded on both the stock exchanges.