Natco Pharma Ltd Research Report By Edelweiss

We met the Natco Pharma Ltd. (NPL) management to gain meaningful insights into the Sofosbuvir (Sovaldi)/Sofosbuvir + Ledipasvir (Harvoni) opportunity for the company. Although the Hepatitis C market is shaping up to be a crowded space, we believe the company will be at par with the domestic behemoths to tap the lucrative opportunity anchored by (1) well entrenched experience in the specialised distribution system required for Hepatitis C drugs and (2) cost competitiveness. Moreover, the company estimates the product’s penetration levels to be as high as 10% of infected population, considering that Sofosbuvir/Ledipasvir are more effective, cheaper than existing therapies in India and entail lower side-effects. Additionally, management is upbeat on the potential of its US product pipeline. The above substantially bolster our confidence that Natco Pharma is well poised to monetise the incremental opportunities and generate substantial cash flows for future growth. We continue to maintain ‘BUY’ with a target price of INR 1873/share.

Download Natco Pharma Research Report By Edelweiss