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
The Natco Pharma stock was up six per cent in two trading sessions on expectations of a strong March quarter performance and near-term triggers such as approval for generics of multiple sclerosis drug Copaxone. For the March quarter, while the pharma sector is expected to report single-digit revenue and flat net profit growth, Natco Pharma could witness a growth of 24 per cent in revenues and 117 per cent rise in its bottom line. The better performance is due to the launch of the generic version of influenza drug Tamiflu in December 2016 in the US. The drug, marketed by its US partner Alvogen, has sales of about $400 million. In addition to a strong March quarter performance, the next trigger is the approval for generics of Copaxone (40 mg strength) which has annual sales of $3.3 billion. The verdict on a patent case is due in May 2017 and a favourable outcome of this could mean a ~400-500-crore revenue opportunity, according to analysts. Natco, along with its US partner Mylan, ...
Natco plans to launch this on November 1, 2019 through its partner Breckenridge Pharmaceutical Inc
The stock moved higher by 6% to Rs 632 on the BSE in intra-day trade
Armodafinil treats daytime sleepiness linked to sleep apnea, narcolepsy and shift work disorder; generic equivalent in the US had sales of $480 mn in 2015