Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Natco Pharma Ltd (BOM:524816, Financial) reported a 35.3% increase in consolidated total revenue for Q2 FY25 compared to the same period last year.
- The company's net profit grew by 83% year-over-year, indicating strong financial performance.
- The growth was primarily driven by the export formulation business and a stable domestic pharma business.
- Natco Pharma Ltd (BOM:524816) declared a second interim dividend of INR1.5 per equity share for FY24-25.
- The company has a robust pipeline of high-value product filings, including semaglutide and olaparib, which are expected to drive future growth.
Negative Points
- The company anticipates a weaker December quarter compared to Q2, with some revenue tail left.
- There is uncertainty regarding the future price erosion of key products like Revlimid, which could impact profitability.
- The crop health sciences segment has been underperforming, with expectations to break even only by March 2026.
- Natco Pharma Ltd (BOM:524816) faces challenges in maintaining consistent growth due to the volatile nature of the pharmaceutical industry.
- The company is cautious about potential regulatory and market challenges in launching new products, particularly in the US market.
Q & A Highlights
Q: Should we expect strong year-over-year growth for Q3 this year, similar to last year?
A: Rajesh Chebiyam, Executive Vice President, Crop Health Sciences: It's tough to judge as the quarter is still ongoing. However, we expect to grow reasonably well, maintaining a 20% growth compared to last year.
Q: How has the market share for Revlimid evolved in the second quarter compared to the first quarter? Are there any challenges in capturing a third of the market share by January?
A: Rajesh Chebiyam: So far, everything is going smoothly, and we don't expect challenges this financial year. We will have more clarity around March or April next year.
Q: Can you provide an update on the high-value product filings post-Revlimid, such as semaglutide and olaparib?
A: Rajesh Chebiyam: The biggest one is semaglutide, with one formulation settled and another under litigation. Olaparib is awaiting approval, with a trial set for a year and a half from now. We expect to file 23 interesting products in the next 1.5 to 2 years.
Q: What is the status of the Ozempic drug settlement with Mylan and Novo, and when can we expect its launch in India and the US?
A: Rajesh Chebiyam: The launch date is confidential, and the review is ongoing with the US FDA. In India, the compound expires in 2026, and we hope to launch post-2026, assuming regulatory approval and no challenges.
Q: How do you plan to scale up your emerging market business, and what are your strategies for growth?
A: Rajesh Chebiyam: We aim to extend US-developed products to other markets like Brazil, Canada, and the Middle East. We are also considering acquisitions in these markets to grow the business.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
