Natco to disinvest Rs.100Crores to setup Agrochemical Technical and Formulation products plant in Nellore, AP.
Why would a pharma company want to divest in commodified agrochemical business? This stock was in my radar but I will think twice now.
If you take Hikal for an example, they does pharma and agrochem. We have to wait for the concall or further update on what sort of agrochemical they are venturing into, before taking any decisions.
Discl - 15% of my portfolio
No offence intended and not an offensive word (not sure why flagged as offensive by someone)
Did Hikal start as agrochemical and then go in to pharma as it matters a lot. You would expect to get into a commodity business and then graduate to a higher level. But not the other way around. If you do not have any better alternative to use the shareholder funds, it’s better to return as dividend or buyback rather than enter in a business which I am sure will reduce the overall ROE. In my mind a definite diworsification.
Excellent stuff from Natco. Ibrutinib is a wonder drug, used in treating certain blood cancers. Not a chemo drug… I am impressed. Patent expiry in 2026, so will have to wait a long time though!
Guys… Any idea if Lupin-Natco combo can price it lower than other players in the market. This drug has always had a view of being costlier by all firms. Also a decent market size to capture if priced competitively
Just started following the company. Has it cancelled the buyback it announced in Nov? Can somebody point me to the background to this Event if it’s true and what was the reason? Seems like a decent company available at a reasonable price. What’s spooking it?
Buyback is open market buyback and not tender offer.
And I think its period is already on…till May 2019
Doesn’t the immediate 1 to 2 year period look little bleak with no significant launches?