Natco Pharma: Focusing On Complex Products


(Prashant Negi) #104

Natco to expand API facility in Tmilnadu.
http://googleweblight.com/i?u=http://wap.business-standard.com/article/companies/natco-pharma-to-expand-its-api-facility-in-tn-with-rs-100-cr-investment-117100200407_1.html&grqid=BKMejEY3&hl=en-IN


(Sumeet Shah) #105

US FDA approves Copaxone 40:


(chets) #106

NATCO also announced the same today: http://www.bseindia.com/xml-data/corpfiling/AttachLive/020a25d7-d897-48ca-8268-6be6732c827f.pdf

Now that the cat is in the bag, anyone knows about the revenue sharing model between Mylan and Natco?


(g1) #107

30% for 20mg and 50% for 40mg as per HDFC report.

G1


(Bhaskar Jain) #108

Teva says - "any launch by Mylan of a generic version of Copaxone 40 mg prior to final resolution of the pending patent appeals and other patent litigation should be considered an 'at-risk' launch, which could subject Mylan to significant damages among other remedies."

Any idea if this would also impact Natco in case of any adverse ruling?

update - Read somewhere that - "Mylan partnered with Indian drug maker Natco Pharma. As per the agreement Natco will supply the drug, while Mylan takes care of litigation and marketing strategy in the US." So Mylan should be in the hook for paying any fines and should not impact Natco directly.


(Susindar) #109

My understanding is Natco will receive a part of profit (20% and 50%) from Mylan. If there is no profit, there would be nothing to get for Natco. I would expect Any profit calculation would be after all costs such as litigation.


(MONK88888) #110

Mylan has exclusive rights for Glatiramer Acetate in several key European markets, including Germany, France, Spain and the U.K.
Mylan is partnered with Synthon, the developer and supplier of its European Glatiramer Acetate Injection 20 mg/mL and 40 mg/mL products
Not sure if this news item has been picked up


(chets) #111

@MONK88888 Thanks for sharing. How is this relevant for Natco?


(Rajesh) #112

But Matlan is partnered with NATCO for generic version where litigation, marketing part is with Mylan and research part with NATCO on profit sharing basis. I don't understand this new fact that Mylan is partnered with Sython. Patent is with Teva. Can you elaborate it please. Sorry to ask silly question.


(MONK88888) #113

I wanted to highlight that only US supply deal covers for Natco and the EU deal is with Synthon. So its not across all markets as I initially presumed-just wanted to clarify to other boarders.
I presume I have answered Rajesh 1975 query as well
For NATCO -Mylan covers the marketing & litigation related areas for US
For Synthon-Mylan has exclusive distribution rights for products in EU / Denmark / Norway / Finland / Cyprus / Malta & Switzerland(27 EU/EEA member states)-this is for the popular 40mg/ml
Also Synthon has apparently partnered with Pfizer for commercialization in US


(MONK88888) #114

Teva & yeda (drug innovator) hold the patent which is now being appealed at US courts of appeal.
There are five other filers : Amneal , Sandoz/Momenta , Dr.Reddy, Synthon & Biocon/Apotex
From litigation point of view , Natco was removed from the chargesheet by Teva/Yeda
for Sandoz/Momenta (US approval to launch ) the manufacturing of the drug is by Pfizer (which is having FDA issues on factory) whereas Synthon marketing partner for US (40 mg/ml) is Pfizer
I am not sure if I am aiding or adding to confusion


(Growth_without Debt) #115

More information about 'At Risk Launch' philosophy

http://ueq581se66q14ashj268pp8y.wpengine.netdna-cdn.com/wp-content/uploads/2016/05/Intensity_Case_Study_Launch_Risk_Analysis_5_9_16.pdf


(Tarun) #116

My notes from Natco AR 16-17. MDA section is very insightful to understand where the Pharma industry is heading towards between Developed market and Developing markets (they call it Pharmerging).

Comparing between this AR and last years AR, messaging is very pronounced. Only niche drugs, if any, to US. (same was evident in Q3 concall where they had provisioned/expensed decent amount as contract termination fee to partners) where the product was no more commercially viable to them.

Four subsidiaries (Brazil, Australia, Canada and Singapore) will be growth engine for them in the Pharmerging markets.

Steady focus on India Oncology segment where they are a strong player. Intent to expend the BMT portfolio.


• In a volatile and uncertain world with a new wave of protectionism, businesses need to constantly recalibrate their strategies to survive headwinds and thrive. The pressure of change is perhaps more pronounced in the global pharmaceutical sector, where the regulatory landscape, competition, channel consolidations, emerging patient needs and technological breakthroughs drive industry players to think afresh.

• During the year, we observed that the industry environment in most developed countries was turning towards uncertain times with higher barriers for entry. We decided to intensify our strategic focus and resource allocation towards India and other emerging economies where we can lead in many therapeutic segments while staying on course with our US strategy. This shift in focus, we believe, is critical for our long-term sustainability.

• Brazil Subsidiary: Backed by a strong portfolio of Oncology products we expect to file niche products in the year 2017 along with a value speciality-driven product pipeline for strong non-retail participation in local tenders (Brazil) and major tenders like PDP to follow for the years to come.

• Use Capital Prudently, Maintain A Strong Balance Sheet, And Return significant Capital to Stockholders.

• As part of our wider strategy, we launched India’s first generic Bone Marrow Transplant (BMT) product, Thiotepa, as we intend to build a full fledged BMT portfolio.

• Target to launch 10+ products across all three domestic business verticals .

• Focus more deeply into niche molecules for the US market

• Pharmerging markets:
The spending of pharmerging markets is expected to grow at 6.9% CAGR from $243 billion in 2016 to $315-345 billion by 2021. Amid uncertainties in the US market, the pharmerging markets have been bright spots in the pharma landscape. These are high-growth markets with robust macroeconomic drivers and have achieved steady growth, despite price controls and currency fluctuations. In the pharmerging markets, the growth opportunities in the branded generics segment ensure a sustainable and predictable revenue prospect over long periods.


Disc:
Invested for some time now and had transactions in last 60 days.

Regards,
Tarun


(Venkatesh) #117

Natco 2Q results are out. PAT Rs848mn +27% YoY. Copaxone revenues should start from next quarter


(saumya) #118

Important note along with results as provided by natco management
The company had a one-time exclusive launch of generic oseltamivir during last year’s period.


(saumya) #119

1500 cr fund raising by natco can anyone tell are they at premium to floor prices and how management is going to use it @T11


(Tarun) #120

Natco Pharma: Alvogen to market generic equivalent to oseltamivir phosphate in USA
Natco’s marketing partner Alvogen first to market generic equivalent to oseltamivir phosphate powder for oral suspension in the USA.


(g1) #122

Any thoughts on why raise money via equity? They have 1600cr in cash, so a total of 3000 cr? What are they planning to do with such money, I really hope they dont get into solar farms :slight_smile:

G1


(saumya) #123

Mylan said it took a 16.2 percent share of new prescriptions and around 8 percent of total prescriptions.


(Nasar) #124

The analyst in this article estimates $250m revenue and $80m profit per quarter for Mylan. Assuming average 40% profit share to Natco, looks like $50m profit per quarter, at least for the remaining two quarters of FY18 is possible?

http://www.markets.co/mylan-inc-gets-a-buy-rating-from-mizuho-securities-2/117201/

Any views?