The Hindu Business Line : Natco plans to set up cancer drug unit in Chennai

BUOYED by the success in capturing a sizable share in the domestic oncology market within a short span by aggressive pricing of its anti-cancer drugs, Natco Pharma Ltd is now planning to set up a sterile unit at Chennai.

In a press release, Natco Pharma said the sterile unit would be dedicated to speciality medicines such as anti-cancer drugs while conforming to the USFDA regulations. A proposal to this effect was approved by the Natco board at its meeting held here on Saturday, while taking on record the unaudited financial results for the second quarter of current fiscal.

According to company officials, the multipurpose fermentation plant and FDA approved anti-cancer drug project involving an initial investment of Rs 10 crore would come up in the Manali industrial area near Chennai. The project work would commence early next year and the facility would commence commercial operations over the next 12 months or so. The company had earlier planned a vitamin-C facility in the same area in partnership with the Tamil Nadu Industrial Development Corporation (TIDCO).

Natco has exhibited a significant improvement in its performance for the second quarter of current fiscal ended September 30. While the turnover was up at Rs 38.44 crore from Rs 30.01 crore in the corresponding quarter of previous fiscal, the net profit zoomed to Rs 6.02 crore from Rs 45 lakh on an equity base of Rs 17.38 crore. For the first half of current fiscal, the turnover stood at Rs 71.01 crore (Rs 53.45 crore), while the net profit amounted to Rs 8.06 crore (Rs 78 lakh).

Natco has informed the stock exchanges on Monday that its board has allotted 60 lakh equity shares of Rs 10 each at a premium of Rs 2.50 per share as per SEBI guidelines under preferential basis. The resolution for allotment of share warrants was passed by the shareholders at the extraordinary general meeting held on April 30 last year.

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Natco plans to set up cancer drug unit in Chennai