Margin reduction of Oseltamivir in the US market cited as the major cause for the decline in profits during the quarter
The decision marks Natco's first ever entry into agrochemical manufacturing, an all together a new area of business for a pharma player
60-70% of the R&D spend will be for developing portfolio in Brazil, Canada, China & India
The company has proposed to buy a minimum number of 1.25 million shares from the open market route in the six-month period
Domestic market has contributed a third of Natco Pharma's revenues of Rs 22 billion in 2017-18, though slipped in sales for the first time
Natco Pharma remains as one of the few Indian pharma companies to have medium-term revenue visibility
The company has a strong oncology product portfolio, forming a significant portion of its domestic business
Natco Pharma, which was one of the few outperformers in the pharma pack until recently, has seen its share price fall by a fourth since its January highs of Rs 1,050 levels. While the launch of its mega blockbuster product, Copaxone generics (oncology treatment) in the US was among key reasons for earlier gains, some disappointment in the December quarter results (Q3) coupled with weakness in broader markets has contributed to the recent correction. Nevertheless, this fall offers an opportunity to investors given the company's strong future prospects, say analysts.To begin with, Natco's revenues fell 16 per cent year-on-year to Rs 5.6 billion in Q3, mainly due to the high base of last year which had seen large contribution from another mega product Tamiflu generic (anti-viral drug for flu treatment) launched on exclusivity basis. Analysts also attribute the miss in revenues to subdued performance of Hepatitis-C business in India and partly due to lower-than-expected revenue ...
However, the revenues declined by 16% to Rs 5.74 bn
US sales are being driven by niche complex products, domestic specialty range is also seeing traction
The stock rallied 5% to Rs 1,013 on the BSE in intra-day trade, up 9% in past four trading sessions as compared to 0.57% decline in the S&P BSE Sensex.
The stock up 20% to Rs 954 on BSE after the company said its marketing partner Mylan receives final approval of generic Glatiramer Acetate, for both 20 mg/mL and 40 mg/mL versions.
The stock price correction can be considered as a good opportunity for long-term investors
The company's strong prospects make the risk-reward favourable
Thus far in 2017, the stock had gained 65% against 6% fall in healthcare index till Monday.
Company board recommends interim dividend of Rs 1.25 a equity share of Rs 2 each
EIR is given when the unit meets the expectations of the US drug regulator on CGMP regulations
Complex product pipeline for US and specialty focus in domestic biz will drive growth for many years
The stock hit a new high of Rs 1,054, up 3%, extending its 15% gain in past eight trading sessions.
The company's product is generic version of Gilead Sciences Inc's Epclusa tablets