Natco Pharma Ltd. share price target

EBITDA margin was down by 1200bps on account of lower margin realisation from Oseltamivir sales in the US (treatment for flu). Initiated work on green-field manufacturing facilities for producing niche agrichemicals with focus on formulation products. Launched Valsartan-Sacubitril tablet in India and filed ANDA for generic version of Ibrutinib tablets in the US . We revise downward our Revenue/PAT estimates by 4%/3% for FY20 to factor lower sales from the US....

ICICI Securities Ltd | Retail Equity Research Q3FY19 results were higher than I-direct estimates on all fronts. Revenues de-grew 1% YoY to | 556.7 crore (I-direct estimate: | 534.7 crore) on the back of high base of Oseltamivir (flu) in the US EBITDA margins were at 37.4% against 51.0% in Q3FY18 (I-direct estimate: 35.4%) mainly due to high base of gOseltamivir (flu) in the...

NATCO Pharma (NATCO) is a R&D; focussed, vertically integrated pharmaceutical company with an experienced management team and presence across multiple speciality therapeutic segments. Q2FY19 revenue grew by 35% YoY due to stronger performance from API (up by 30%YoY) and formulation (up by 96%YoY) exports. EBITDA rose by 104% YoY while margin is up by 1520bps primarily driven by revenue from limited competition products in the US. Received court affirmation in favor of prior decisions invalidating...

ICICI Securities Ltd | Retail Equity Research Q2FY19 results were in-line with I-direct estimates on revenues and net profit fronts. Revenues grew 27.4% YoY to | 543.5 crore (I-direct estimate: | 560.1 crore) on the back of continuous windfall from limited competition products (Glatiramer Acetate, Liposomal Doxorubicin, Lanthanum Carbonate and Oseltamivir) in the US EBITDA margins were at 40.6% vs. 28.6% in Q2FY18 (I-direct estimate: 44.4%) mainly due to better realisation from limited...

NATCO Pharma (NATCO) is a R&D; focussed, vertically integrated pharmaceutical company with an experienced management team and presence across multiple speciality therapeutic segments. Q1FY19 revenue grew by 28% YoY due to stronger performance from domestic (4% vs -20%)) and international formulations(~75%). EBITDA rose by 82% YoY while margin witnessed a 1320bps increase on account of lower raw material cost (RM). PAT growth of 94% YoY is led by lower cost escalations and less...

Revenue fell by 29.85% to Rs. 538.6 Cr in Q1FY19 when compared to the previous quarter. Natco Pharma Ltd Q1FY19 results Comment

Revenues grew 25.8% YoY to | 538.6 crore (I-direct estimate: | 659.6 crore) due to windfall from limited competition products (Glatiramer Acetate, Liposomal Doxorubicin and Lanthanum Carbonate) in US EBITDA margins improved 847 bps YoY to 40.4% (I-direct estimate: 50.1%) mainly due to better realisation from limited competition launches in the US. However, it was below I-direct estimates mainly due to higher employee cost and other expenditure Net profit grew 93.2% YoY to | 181.6 crore (I-direct estimate: | 248.5...

EBITDA margins improved 723 bps YoY to 50% (I-direct estimate: 57.6%) mainly due to better realisation from limited competition launches in the US. However, it was below I-direct estimates mainly due to lower gross margins (84% vs. I-direct estimate of 90%) Adjusted net profit increased 69.7% YoY to | 300 crore (I-direct...

NATCO Pharma (NATCO) is a R&D; focussed, vertically integrated pharmaceutical company with an experienced management team and presence across multiple speciality therapeutic segments. High emphasis on R&D; and complex molecules focusing on long...

Q3 sales were 16% below expectations on weak India business (down 24% YoY on weak Hep-C sales) and lower-than-expected market share in gCopaxone 40mg (14-15%). However, gross margin was strong at 88% (up 18.6 pp YoY)