Natco Pharma: Focusing On Complex Products

Natco Q3 Con Call highlight

General

• 1000 + cr on the book, plus a lot of cash coming in the next few quarters.
• We are doing exactly the Opposite of what the industry is doing. The industry is losing money in the US, and we are earning there. The Opposite is true in India. +++++
• We have done a few filings in the US as remunerative as Revalimid, but we will reveal the name later.

Subsidiary

• So far 80cr/quarters
• 40% of PAT is coming from a subsidiary. They are contributing significant sales
• Brazil has 5/6 launches in the next 12 months. Canada has a few more launches.
• Brazil 36 cr revenue.

Agro

• Doing well 10 cr revenue despite starting late.
• In 12 months, this shall contribute 150-200 cr (conservative estimate). In the next 3/4 year, it shall reach around 400-500 cr revenue business.
• 25% is B2B, and the remaining we are doing on our own.
• Real money is doing it on our own as we capture most of the value.
• A lot of sales will happen in Q4 and Q1 (biggest quarter generally)- (Lumpy business).
• CTPR is a base/anchor business.
• We have other products in the pipeline and will be launching them in the next couple of years.
• CTPR penents till 2025. Currently, it is a limited supplier market.
• CTPR – The competition has not launched all combinations of products, and we have launched many combinations.

Domestic Formulation

• Challenge is a limited segment. Trying to broaden our target segments.
• Working on domestic acquisition in 2023.

Revilmid

• Profit sharing for Q4/Q1.
• Expectations- Revenue 2700 cr – PAT of FY23- 700cr.

Con Call Transcript