The ratings reaffirmation from ICRA considers Natco Pharma Limited’s healthy abbreviated new drug application (ANDA) portfolio in the complex generics space in the US market.
Based on the report, the positive aspects of Natco Pharma Limited are:
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Healthy ANDA portfolio in complex generics space
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Strong R&D capabilities
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Notable market position in domestic oncology segment
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Robust financial profile with low debt and strong liquidity
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Strong manufacturing capabilities and backward integration into API manufacturing
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Diversification into agrochemical segment
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Substantial revenue contribution from gRevlimid and gCopaxone
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Improvement in operating profit margins (OPM)
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Strong cash and cash equivalents position
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Negative net-debt position
And the negative aspects are:
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High product concentration risk
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High working capital intensity
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Increasing competition in key markets
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Exposure to regulatory risks and litigations
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Warning letter from US FDA for Kothur facility
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Dependence on few critical molecules
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High inventory days
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Increasing scrutiny by US FDA
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Compliance costs and risks associated with regulatory requirements
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Potential adverse outcomes on product litigations.
Personal Investment Disclosure: Invested. My comments are my personal opinions and may not reflect the company’s current situation.
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