Natco stands out with its niche portfolio

Complex product pipeline for US and specialty focus in domestic biz will drive growth for many years

Natco Pharma has been a big outperformer on the bourses compared to its larger peers, which have faced headwinds due to drug price erosion in the US or due to regulatory issues. Natco’s strength lies in its limited competition complex products’ portfolio for US and specialty-led domestic portfolio. These continue to drive earnings and, importantly, provide good growth visibility. Not surprising then that after surging almost 15 times in the past five years and nearly doubling in the past one year, the stock still has more room for upside.

The company derives almost 40 per cent revenue from the US