NATCO PHARMA- Entering the Big League through Multi Pronged Strategy
Natco recently was granted a Compulsory License (CL) for Sorafenib (branded as Nexavar, indicated for liver and kidney cancer) for the Indian market. This allows Natco to market this product in India with almost no generic competition for a market that is ~Rs. 500-700m in India with EBITDA margin of ~70%. More importantly, Natco has 5 such other products ready to be filed for compulsory licenses.
Natco has one of the most lucrative Para IV pipeline in India pharma currently with Para IVs on Copaxone ($2.8b in US), Revlimid ($1.8b in US), Tamiflu ($ 250m in US), Tykerb ($115m) and Fosrenol ($ 90m). Of these, Natco enjoys FTF status on Revlimid, Tamiflu, Fosrenol and Tykerb. As for generic Copaxone, we believe that clinical trials will not be required for final approval. We recommend Natco as Outperform with a target price of Rs. 445.
Natco has one of the most lucrative Para IV pipeline in India pharma currently with Para IVs on Copaxone ($2.8b in US), Revlimid ($1.8b in US), Tamiflu ($ 250m in US), Tykerb ($115m) and Fosrenol ($ 90m). Of these, Natco enjoys FTF status on Revlimid, Tamiflu, Fosrenol and Tykerb. As for generic Copaxone, we believe that clinical trials will not be required for final approval. We recommend Natco as Outperform with a target price of Rs. 445.
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NATCO PHARMA
NATCO PHARMA
