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Natco Pharma is looking at an acquisition to drive growth in business, according to its Director and Chief Executive Officer, Rajeev Nannapaneni.
“We have cash on books and are looking at some strategic opportunities. Hopefully, we do a small acquisition. We are internally targeting acquisition plus organic growth,’‘ the CEO said on the growth plans for the company.
While stating that the domestic business “is doing well’‘, Nannapaneni said the company was looking at different things, including an acquisition and 10-15 product launches a year. The Hyderabad-based drug-maker launched about 11 products last year.
Natco Pharma has recorded consolidated revenue of ₹2,812 crore for the year ended March 31, 2023, as against Rs 2,044 crore last year, registering 37.6 per cent growth, with a consolidated net profit of ₹715 crore as against ₹170 crore last year. The increase in revenue and profits for the year was driven by business growth in the US market, as also Canada and Brazil, where it has subsidiaries.
Also read: Natco Pharma expecting ₹200 cr revenue from agri business in 12 months
It is also in the process of ramping up subsidiary business overseas and setting up an arm in Colombia with an investment of up to $100,000 and another in Indonesia.
As part of the ‘multi-pronged’ strategy to strengthen international business, it is also looking to buy an asset in the UK, the CEO said, adding, “The subsidiaries are doing extremely well. The future of the business is the subs.’‘ In the FY23 balance sheet, they contributed about Rs 555 crore of revenue.
Natco is also trying to globalise and use its R&D pipeline to extend to a multiple number of markets.
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