Natco Pharma plans to step up focus on niche products the US market as part of its business strategy. According to a senior executive of the Hyderabad-based company, its strategy for the US market is mainly focussed on products involving intricate chemistry and complex manufacturing process, among others.
This assumes significance in the context of increasing pricing pressure due to price erosion in the US pharmaceutical market. Natco already has a strong pipeline of niche and active products in the US . There are 25 active commercial products, including complex generic brands, Copaxone, Tamiflu, Fosrenol and Tykerb.
The Key Para IV product pipeline includes Nexavar, Revlimid, Aubagio and Kyprolis, according to the information provided by the company. Natco is working on a low-risk business model through partnerships with global pharmaceutical players.
The drug maker is also strengthening its domestic market presence. Apart from continuing to focus on launch of niche molecules with high-barrier entry, Natco expects unlocking of value in the near future with existing and other molecules in the pipeline.
The company also plans to ramp up its crop health science business in the product portfolio of agro-chemicals, bioproducts and plant growth regulators. It recently invested ₹152 crore in setting up a state-of-the-art greenfield manufacturing facility for agro technical and formulation products.
In the kharif season of 2021, Natco launched its first pheromone-based mating disruption product for the management of Pink Bollworm pest for cotton.
In the second quarter ended September 30, 2021, Natco Pharma posted a steep fall in its consolidated net profit at ₹65 crore against ₹204 crore in the corresponding quarter of previous fiscal on a revenue of ₹415 crore (₹828 crore in the same period last year). It attributed the decline in revenue and profits to a one-off contribution in earnings of the previous year.
Natco’s scrip lost 1.52 per cent on the Bombay Stock Exchange on Wednesday to close at ₹820.
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