Natco Pharma gains after USFDA approval for Budesonide generic

Natco Pharma rose 0.85% to Rs 594.55 at 12:06 IST on BSE after the company said it received final approval from the US drug regulator for generic version of Budesonide capsules.

Meanwhile, the BSE Sensex was down 84.16 points, or 0.32%, to 25,967.65.

On BSE, so far 15,000 shares were traded in the counter, compared with average daily volume of 34,131 shares in the past one quarter. The stock hit a high of Rs 600.35 and a low of Rs 585 so far during the day. The stock hit a record high of Rs 703.95 on 25 August 2016. The stock hit a 52-week low of Rs 390 on 29 March 2016. The stock had outperformed the market over the past 30 days till 23 November 2016, falling 1.59% compared with the 7.26% decline in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 13.75% as against Sensex's 6.41% decline.

The large-cap company has equity capital of Rs 34.86 crore. Face value per share is Rs 2.

Natco Pharma said it received final approval of abbreviated new drug application (ANDA) from the US Food and Drug Administration (USFDA) for generic version of Budesonide capsules (Enteric Coated), 3 milligrams (mg). Natco and its marketing partner Alvogen plan to launch this product in the US market immediately.

Perrigo Pharma International DAC sells Budesonide capsules under their brand Entocort in the US market. Entocort EC Capsules, 3 mg, and its generic versions had US sales of approximately $370 million for twelve months ending December 2015, according to IMS Health.

On a consolidated basis, net profit of Natco Pharma rose 127.21% to Rs 66.55 crore on 75.56% rise in net sales to Rs 415.21 crore in Q2 September 2016 over Q2 September 2015.

Natco Pharma manufactures generic dosage forms, bulk actives and intermediates for the Indian and international markets.

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