NATCO GETS BUY TAG FROM JEFFERIES
Natco's partner Mylan has announced that it has received approval for Copaxone 40mg and 20mg both. It is the first generic to receive approval for 40mg and second generic for 20 mg. The company will launch the generic immenently. Copaxone is indicated for the treatment of patients with relapsing forms of multiple sclerosis (MS). The brokerage believes that Natco could be the only generic in the market for 40mg for the next six months. The two nearest players are Sandoz and Dr Reddy’s. Sandoz has got a warning letter on the manufacturing plant, which will likely delay approval till next year. According to Jefferies, Natco’s strong R&D team, complex specialty focus pipeline and lack of significant FDA issues makes it one of the best placed Indian pharma companies. Unlike peers, it is not impacted by price erosion in its base business. Its strategy of a niche US focus and emphasis on India and emerging markets should lead to better returns.
Broking firm: Jefferies Rating: Buy Closing price: `991.80