Natco Pharma posts impressive numbers in Q1FY17

Natco Pharma has declared better than expected results in Q1FY17.Company has posted a net profit of Rs 47 crores, which has increased by 72 per cent as compared to the Q1FY16. EBITDA has increased by 34 per cent and stands at Rs 77.25 crores. Total income from operations stand at Rs 352.22 crores, which has increased by 45 per cent as compared to the corresponding quarter of the previous fiscal. Sales of active pharmaceutical ingredients or APIs, the key raw materials that go into manufacture of drugs, have risen marginally by 2 per cent to Rs.57 crores.

The reason for such a positive result is largely driven by the increased domestic sales of its Oncology and Hepatitis C products. Around half of Natco Pharma’s generic sales come from its Oncology drugs. Besides, Natco Pharma had the first-mover advantage in terms of sales of a generic version of Sovaldi. The company got approval in March 2015 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 pill Hepatitis C drug of Gilead Sciences Inc.; and is sold under the brand name Sovaldi.

On the other hand, shares have opened in green and are currently trading at Rs 640, up by 2.27 per cent. The company operates in four segments i.e. bulk chemicals, formulations, job work and others. The products of the company are segregated further into Pharma and Oncology (Haematology and solid tumours).