Shares of Natco Pharma surged by over 6 per cent in the early trade on the Bombay Stock Exchange today amid media reports that the company may exit from the pharmacy business in the US soon.
Reacting to the buzz, the stock rose 6.48 per cent to touch a one-month high of Rs 271.90 on the BSE. Investors went on a buying spree at the company’s counter on the National Stock Exchange as well, where the scrip spurted by 6.22 per cent to a high of Rs 272.
During the mid-session, the scrip was quoting higher by 4.05 per cent at Rs 265.70 on the BSE and up by 3.51 per cent at Rs 265.05 on the NSE.
According to reports, the Hyderabad-based company, which currently operates SaveMart Pharmacy in Lancaster, Pennsylvania, US, is actively considering its sale. Natco plans to exit from the pharmacy business as it now has ‘no synergies’ with the company’s business strategy, the report added.
Natco Pharma was the first Indian pharma company to enter into the pharmacy business in the US in 2006 by acquiring a 75 per cent stake in K&C Pharmacy, a general partnership firm based in New Jersey, US, with a retail pharmacy outlet, Nicks’ Drugs.