Natco profit dips 15.6% to `28.2 crore
Sales rose 14.2% to `227.5 crore from `199.2 crore
Hyderabad: Natco Pharma Ltd on Wednesday posted a 15.6% drop in net profit for the quarter ended 30 June due to declining sales of its active pharmaceutical ingredient business.
The company reported a net profit of ₹ 28.2 crore in the quarter compared with ₹ 33.5 crore in the year-ago period. Sales rose 14.2% to ₹ 227.5 crore from ₹ 199.2 crore.
Sales of formulation or generic drugs which contribute about 70% of total business rose 58% to ₹ 141.5 crore compared with ₹ 89.7 crore in the year-ago period.
Around half of Natco’s generic sales comes from its oncology drugs.
Sales of active pharmaceutical ingredients or API—the key raw materials that go into manufacture of drugs—declined 35% to ₹ 55.8 crore.
“Although this is a decrease of about 15.6% compared to the same quarter last year, the company expects strong sales growth with high-margin products, in the ensuing quarters of FY2016," Natco said in a statement.
Natco got approval in March from the Drugs Controller General (India) to sell a licensed generic copy of the anti-viral drug sofosbuvir in India.
Sofosbuvir is a $1,000-a-pill Hepatitis C drug of Gilead Sciences Inc., sold under the brand name Sovaldi.
“Domestic business has been the major growth driver wherein Sovaldi has clocked in sales of ₹ 37 crore during the quarter," said Hitesh Mahida, research analyst at Mumbai-based Antique Stock Broking Ltd.
The company is also banking on multiple sclerosis drug copaxone to drive its sales in growth in coming quarters.
Natco has tied up with US-based Mylan Inc., and is awaiting US Food and Drug Administration (USFDA) approval to launch 20 mg dosage version of Israel-based Teva Pharmaceutical Industries Ltd.’s drug copaxone. Patents of copaxone 20 mg dosage form are expected to end in September.
The company said the board had discussed fund raising for one of the subsidiaries Timecap Overseas Ltd., Mauritius and authorised its vice-chairman and CEO to explore various options. Timecap Overseas holds major stake in Natco’s Brazilian business, where it plans to expand its generic business.
Shares of Natco dropped 2.38% to close at ₹ 2,410.65 on BSE while the benchmark Sensex declined 1.27% to close at 27,512.26 points.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!