Natco Pharma Ltd. share price target

Q2FY21 on the back of growth in exports of formulations, APIs as well as one-offs like the Revlimid settlement income. India business continued its de-growth during the quarter with a YoY decline of 11% on account of lower oncology and Hep-C sales. The company has stated that it would look to launch the highly anticipated Revlimid in the U.S during FY22. Natco expects the launch of its agrochemical molecules by the end of the year, pending regulatory approval....

NATCO Pharma (NATCO) is a R&D; focussed, vertically integrated pharmaceutical company with an experienced management team and presence across multiple speciality therapeutic segments. We upgrade our rating from Sell to Hold by valuing Natco at 26x FY22 EPS with a target of Rs.881. We expect the combination of existing products such as Chloroquine, Oseltamivir as well as the launch of Revlimid in the U.S and its focus on other regulated markets to drive overall profitability. Total revenues were up 13% YoY during the quarter led by strong performance in the export formulation and API segments. Formulation exports grew by 29% YoY, led by strong showing in...

Natco has carved out its own identity via tie-ups to tap limited but niche products pipeline including 20 Para IVs filings (FY20). As per the revised and more feasible game plan, it plans to market products via tie-ups with established players in the generic space. Till FY19, the company had filed 51 ANDAs, which includes some niche FTF opportunities. Overall, the...

Natco has carved out its own identity via tie-ups to tap limited but niche products pipeline including 20 Para IVs filings (FY19). As per the revised and more feasible game plan, it plans to market products via tie-ups with established players in the generic space. Till FY19, the company filed 51 ANDAs, which includes some niche FTF opportunities. Overall, the...

Net profit was down 34.5% YoY as other expenses included a one-time provision of 15 cr for bad debts The launch of Revlimid will be dependent on the court trial that will take place in Canada during the month of March...

Natco has carved out its own identity via tie-ups to tap limited but niche products pipeline including 20 Para IVs filings (FY19). As per the revised and more feasible game plan, it plans to market products via tie-ups with established players in the generic space. Till FY19, the company filed 51 ANDAs, which includes some niche FTF opportunities. Overall, the management expects one or two complex product launches in the US. New launches in CND / Oncology to drive domestic revenues Natco is a leading player in the domestic oncology segment with a product...

Natco Pharma (NATCO) is ~ INR 2000 Crore revenue Pharmaceutical company with exposure to the US generics (40%, FY19) and India Formulations (37%) segments.

Natco pharma's revenue/EBITDA/PAT declined 11%/16%/20% YoY in Q1FY20. The decline was attributed due to the performance of the formulation segment which de-grew 12% YoY. However, API and subsidiaries reported a growth of 7% and 21% YoY. Despite the decline in...

Natco witnessed YoY de-growth of 11% in sales in Q1FY20 due to poor sales in the US and decline in Hep-C revenue in India. EBITDA was down by 16% (YoY) while the margin down by 270bps on account of lower realisation in the US . Launched first time generics - apixaban and rivaroxaban in India (June) which are globally mega blockbuster molecules. Key drivers of revenue in FY20 will be India, Brazil and Canada which together is expected to see encouraging growth in FY20-21E....

Revenues de-grew 8.6% YoY to | 492.3 crore (I-direct estimate: | 608.2 crore) mainly due to 14.1% decline in domestic formulations to | 164 crore. Export business grew 2.1% YoY to | 241 crore (I-direct estimate: | 262.1 crore). EBITDA margins contracted 154 bps to 38.9% (I-direct estimate: 43.3%) mainly due to high employee cost. EBITDA de-grew 12.1% YoY to | 191.3 crore against I-direct estimate of | 263.5 crore. Net profit de-grew 21.1% YoY to | 143.2 crore (I-direct estimate: | 195.4 crore). Delta vis--vis...