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    Natco Pharma soars 17% as path to launch Revlimid generic clears

    Synopsis

    Natco Pharma would be the first company to launch Revlimid (lenalidomide) in March 2022 as Dr Reddy’s settlement clears the path for the company. Dr Reddy’s would launch sometime after it (we assume 6 months) and would have market share restrictions lower than Natco in our view,” said Sriraam Rathi, analyst at ICICI Securities.

    pharmaAgencies
    ICICI Securities upgraded the stock to ‘buy’ from ‘add’ with target price at Rs 954, up from Rs 875.
    NEW DELHI: The settlement of Dr Reddy’s Labs with Celgene over its patent on Revlimid cleared the path for Natco to launch the first generic version of the drug which is used to treat multiple myeloma and myelodysplastic syndromes.

    Following the settlement, shares of Natco Pharma surged 17.53 per cent to Rs 912.60. During the day it also hit the 20 per cent upper circuit placed at Rs 931.70.

    Natco Pharma would be the first company to launch Revlimid (lenalidomide) in March 2022 as Dr Reddy’s settlement clears the path for the company. Dr Reddy’s would launch sometime after it (we assume 6 months) and would have market share restrictions lower than Natco in our view,” said Sriraam Rathi, analyst at ICICI Securities.

    Till date, three companies--Natco Pharma, Dr Reddy’s Labs and Alvogen--have settled the litigation with innovator and would launch their respective generics during the exclusivity period of FY23-FY26.

    “We expect Natco to generate total revenue and PAT of $1.3 billion and $900 million during the shared exclusivity period over FY23-FY26. This would imply an net present value of Rs302 per share for Revlimid for Natco,” Rathi said.

    ICICI Securities also upgraded the stock to ‘buy’ from ‘add’ with target price at Rs 954, up from Rs 875.

    Shares of Natco Pharma have surged 53 per cent year-to-date and 60 per cent in the last one year.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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