Natco Pharma Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Revenues grew 136% YoY to | 679 crore (I-direct estimate: | 407 crore) mainly on account of sales and profit sharing from Oseltamivir (gTamiflu; anti-infective) under exclusivity in the US EBITDA margins improved 1713 bps YoY to 38.3% (I-direct estimate: 23.5%) mainly due to gTamiflu exclusivity. EBITDA grew 326% to | 260 crore (I-direct estimate: | 96 crore) Adjusted net profit increased 428% YoY to | 195 crore (I-direct...

Stellar Quarter on the Back of gTamiflu Inventory Build-up; Target Price Raised: Alvogen (Natcos commercialization partner for gTamiflu) launched gTamiflu onDec 12, 2016. But gTamiflu sales to Alvogen were recorded for the quarter ended September 2016, because the agreement is structured such that Natco will sell gTamiflu at cost plus certain markup to Alvogen. The sales are basically inventory build-up of gTamiflu in the run-up to the launch. The profits from gTamiflu sales in US would be shared between Alvogen and Natco.

Natco Pharma's (NTPH) R&D; pipeline has been built with focus on (1) intricate chemistry and (2) many complex processes. Its 21 pending ANDAs are focused on high barrier to entry products (~50% in oncology and multiple sclerosis) that are difficult to manufacture, formulate or may face legal and re..

ICICI Securities Ltd | Retail Equity Research Revenues grew 92.5% YoY to | 467.9 crore against I-direct estimates of | 316.2 crore mainly on account of Oseltamavir (gTamiflu; antiinfective) revenues received from US based partner Alvogen EBITDA margins declined 155 bps YoY to 22.4% (I-direct estimate: 24.0%) mainly on account of lower gross margins. Lower gross margins were mainly due to lower margins registered in Oseltamavir Adjusted net profit increased 127% YoY to | 67 crore (I-direct estimates: | 48 crore) mainly on account of a strong operational...

Natco Pharma is dominant in the domestic oncology and gastro hepatology segments with a niche portfolio of 28 products including the generic version of Gilead's Sovaldi. Company's manufacturing facilities are vertically integrated with strong inhouse API development and complex products in finished dosage formulations. In bid to diversify its products segment it has...

Revenues grew 45.4% YoY to | 325.2 crore (I-direct estimate: | 321.1 crore) due to strong traction from Hepatitis-C segment (300% growth to ~| 135 crore) • EBITDA margins declined 186 bps YoY to 23.8% (I-direct estimate: 22.5%) mainly on account of higher other expenditure. EBITDA grew 34.8% to | 77.3 crore (I-direct estimate: | 72.2 crore) • Adjusted net profit increased 69.8% YoY to | 47.7 crore (I-direct estimates: | 46.1 crore) on account of lower finance costs, depreciation and high other income. ICICI Securities Limited new target price is | 700, which includes base business value of | 345 (25x FY18E EPS of | 13.8) + | 355 for NPV of other FTF/Para IVs.

ICICI Securities Ltd | Retail Equity Research Revenues grew 102.7% YoY to | 407 crore (I-direct estimates: | 313 crore) mainly on account of strong traction from the Hepatitis-C...

Natco Pharma (NPL) is a vertically integrated and R&D; focused pharmaceutical company engaged in developing,manufacturing and marketing of finished dosage formulations (FDF) and active pharmaceutical ingredients (APIs). NPL's focus is primarily on niche therapeutic areas and complex products and it markets and distributes products in over...

3. gSovaldi contributed Rs630mn in 2Q (Rs230mn from B2B business) with operating margins at 28-30%. We believe Sovaldi is an interesting opportunity for the Indian market and Natco's first mover advantage will give it a significant...