Natco Pharma jumps 4% on filing generic version of oncology drug in US

Shares of Natco Pharma jumped 4.5 per cent to Rs 549 per share in Monday's intra-day trade, after the company filed a generic version of an oncology drug in the US markets. In comparison, the S&P BSE Sensex dropped 0.6 per cent to hit day's low of 60,283 levels.
 

The drug major filed an abbreviated new drug application (ANDA) for generic versions of Olaparib tablets - 100 mg and 150 mg with the US Food and Drug Administration (USFDA). Olaparib is primarily used to treat ovarian, breast, pancreatic, and prostate cancer.
 

Since Olaparib tablets are marketed in the US by AstraZeneca, under the brand Lynparza, the pharma major informed that it was named as defendant in a lawsuit filed in the US district court of New Jersey by AstraZeneca and Kudos Pharmaceuticals.
 

That said, NATCO and its co-development marketing partner Alembic Pharmaceuticals believe that ANDA's first-to-file basis could make the company eligible for 180 days of marketing exclusivity at the time of launch of the product. READ RELEASE HERE

So far this fiscal year (FY23), shares of Natco Pharma tumbled 37 per cent from Rs 770 apiece, as against a 3 per cent rise in the S&P BSE Sensex. The stock had hit a 52-week high of Rs 936 per share on February 15, 2022, whereas it nosedived to a 52-week low of Rs 502 per share on February 2, 2023.
 

In the October-December quarter of FY23, Natco Pharma's revenues declined 12 per cent year-on-year (YoY) to Rs 490 crore, however, rose 14 per cent on a quarter-on-quarter (QoQ) basis. While Indian formulations stood at Rs 100 crore, up 7 per cent QoQ, export formulations jumped 18 per cent QoQ, on the back of higher gRevlimid shipments.
 

Analysts at Nuvama Institutional Equities upgraded the counter to 'buy' with a target price of Rs 635 per share. "The upgrade factors recovery of non-covid business to Rs 100 crore per quarter, better-than-expected agro-chemical guidance, cost control, and limited gRevlimid pricing threat at this stage," they added.