Natco Pharma bullish on India, Brazil, Canada biz for FY20

Natco Pharma expects India, Brazil and Canada markets to be its revenue drivers during the current financial year, recording growth of 30 per cent to 40 per cent, according to a top company executive.

The India business alone was likely to grow by about 15 per cent to 20 per cent, Natco Vice-Chairman and Chief Executive Officer Rajeev Nannapaneni has said.

"...The second driver will be Brazil, so Brazil did not do well for many years, so we had some very good launches this year and so that should drive earnings," he said replying to a query during a recently held Earnings Call of the company.

Talking about Canada, he said Natco was anticipating a couple of launches and a couple of "favourable settlements".

If they all come through, the city-based drug maker expected the three markets to grow at 30 per cent to 40 per cent, he added.

...India is expecting about eight to 10 launches this year. Brazil we are expecting about three to four launches. Canada also we are expecting about three to four launches that is the major one, Nannapaneni said.

The company has recorded consolidated total revenue of Rs 2,225 crore for the year ended on March 31, 2019 as against Rs. 2,242 crore in the previous year, a slight decline of less than 1 per cent year-over-year.

The net profit for the period on a consolidated basis was Rs.642.4 crore as against Rs.695 crore for the last year showing a decline of 7.6 per cent.

The Indian business stood at Rs 735 crore while that of Canada and Brazil at Rs 96 crore and 33 crore respectively.

...Overall what we are projecting is that we will grow by about 7 per cent to 8 per cent and in topline and also we are expecting that our profits also should grow by about 8 per cent to 10 per cent from where we are today, he said.

The growth would primarily better revenues from its drug Copaxone as projected by its marketing partner Mylan and also improved performance the rest of the world based on new product launches.

Copaxone (glatiramer acetate injection) a multi-billion dollar drug and a prescription medicine used for the treatment of people with relapsing forms of multiple sclerosis.

Natco Pharma's marketing partner Mylan had already launched generic version of the same drug in the US market in October 2017.