Bumper profits ahead for Natco Pharma: Angel Broking

Views of Mr. Shrikant Akolkar (Research Analyst, Angel Broking):

"The launch of Generic Copaxone (Glatiramer Acetate), multiple sclerosis drug, in the US market is very positive news. While there is an existing generic player in the 20mg (Momenta/Sandoz - Glatopa-20mg), there is no competition in 40mg hence we believe that Mylan/Natco's gCopaxone-40mg is the only generic in 40 mg strength. The approval to Momenta/Sandoz's Glatopa-40 mg is likely to delay due to the existing warning letter on their manufacturing facility. We expect Natco to book profit of $80mn in FY18 and $180mn profit in FY19 assuming lower price erosion and 3-4 competitors. The stock has seen a steep run-up upon the approval which leaves less room for the upside. We maintain Accumulate rating with a price target of Rs 1,057."

Shares of NATCO PHARMA LTD. was last trading in BSE at Rs.982.6 as compared to the previous close of Rs. 954.35. The total number of shares traded during the day was 326696 in over 12260 trades.

The stock hit an intraday high of Rs. 1049.75 and intraday low of 975.5. The net turnover during the day was Rs. 327327500.

Source : Equity Bulls

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