Natco Pharma surges on signing licensing agreement for Daclatasvir

The stock surged 7% to Rs 544 on the BSE.

Natco Pharma has surged 7% to Rs 544 on the BSE after the company announced that it has signed a licensing agreement for Daclatasvir, which is used for treatment of chronic hepatitis C.

“The company has signed a nonexclusive, royalty free licensing agreement with the Medicines Patent Pool (MPP) and Bristol-Myers Squibb to manufacture and sell generic versions of Bristol-Myers Squibb’s chronic hepatitis C medicine – Daclatasvir Dihydrochloride (Daclatasvir),” Natco Pharma said in a press release.

Natco will market generic Daclatasvir under its own brand NATDAC, and through its strategic partners in India.

This agreement allows Natco to expand access to these chronic hepatitis C medicines in 112 developing countries. Under the license, Natco can set its own price for the generic products it produces, it added.

Daclatasvir is the first-in-class NS5A inhibitor used in combination with Sofosbuvir for the treatment of patients with chronic hepatitis C virus (HCV) genotype 3 infection. Compared to other treatment options, this combination not only increases the cure rate, but is also regarded as a valuable treatment option in some of the difficult-to-treat HCV patient subsets, Natco Pharma said.

At 11:00 a.m. the stock was up 5% at Rs 533 on the BSE as compared to 0.15% rise in the S&P BSE Sensex. A combined 322,881 shares changed hands on the counter on the BSE and NSE.