Natco's niche portfolio is an opportunity

The company's strong prospects make the risk-reward favourable

Natco Pharma, which had reported strong June quarter performance unlike larger peers, has seen a steep correction in its share price thereafter. Its marketing partner Mylanindicated  a delay in generic Copaxone launch, a multiple sclerosis treatment drug. Mylan indicated that all major launches including generic Copaxone would be deferred from 2017 to 2018 due to ongoing challenges in the US and uncertain regulatory environment. Clearly, since the street was factoring the gains in FY18, the news is a disappointment. However, while the product launch has been delayed, it hasn't derailed. Thus, the stock price correction can be looked upon as