As a part of its plans to strengthen its domestic business, Natco Pharma is looking for acquisitions. The Hyderabad-based company is interested in an entity with a revenue of ₹100 crore to ₹200 crore.

Rajeev Nannapaneni, Director and Chief Executive Officer, Natco Pharma Ltd said, “The domestic business is steady, but we have money in the bank and we are looking at different acquisitions. Hopefully, we will be able to strengthen our domestic with an acquisition.’’

The Hyderabad-based company is interested in an entity with a revenue of ₹100 to ₹200 crore and all depends on how the negotiation works, and the nature of the portfolio and its profitability, Nannapaneni added.

To improve its base earnings, Natco is working towards further strengthening its subsidiary business and enhancing its domestic reach through an acquisition or with new launches, the CEO said.

In January, Hyderabad-based Natco’s US subsidiary had acquired the US-based Dash Pharmaceuticals LLC, a pharmaceutical sales, marketing and distribution entity, for a cash consideration of $18 million.

Agro Chemicals

Natco is also looking at expanding its agrochemicals business which contributes a `miniscule’ part of its revenue now.

The agro chemicals business is still in its infancy Nannapaneni said, adding, “Our thinking internally is that, this business has to go large and hopefully it will become about 10 to 15 per cent of our sales in the next 2 to 3 years depending on our success,’‘ he said in the Q1 earnings call.

In the first quarter that ended on June 30, 2022, Natco earned a consolidated total revenue of ₹919 crore as against ₹427 crore for the same period last year, reflecting a growth of 115 per cent. The net profit was at ₹320 crore as against ₹75 crore in the corresponding quarter of previous financial year registering over four-fold increase.

social-fb COMMENT NOW