Lack of new launches in near term a worry for Natco Pharma stock

Lack of significant launch visibility has led analysts to estimate net profit numbers to be little changed next year

Prior to January 2018, shareholders of Natco Pharma had little reason to complain. The stock had risen 40 times over the past decade. 

However, since the last year, it has corrected 26 per cent as outlook for earnings growth remains subdued. Natco has, over the past few years, successfully penetrated the US market with niche product launches via tie-ups with established players in the generic space. 

Of the recent ones that drew investor attention was a generic version of the multi-billion dollar drug (Copaxone), used to treat multiple sclerosis — launched in collaboration with Mylan in FY18. Its limited competition flu treatment