Shares of Natco Pharma plunged 6.6 percent during Monday, November 14 to touch a new 52-week-low after the reports of the company being named as one of the defendants in an antitrust lawsuit in the US surfaced.
During Monday’s trade, the stock opened at a price of Rs. 584.80 per share against the previous close of Rs. 584 and dipped further to record a new 52-week-low of Rs. 545. However, the stock picked a little pace afterward and was trading at Rs. 573.35, down by nearly 1.82 percent at 12:45 pm., on the NSE.
The stock touched a 52-week-high of Rs. 944 per share on January 17, 2022 indicating that at the current levels, the stock is trading almost 40 percent below its 52-week high.
The stock has imparted a negative return of 18 percent to its shareholders in the past six months. Moreover, the stock has declined almost 38 percent year-to-date. In the last five years, the shares of the company have dipped by over 36 percent.
On Saturday, Natco Pharma announced that Bristol Myers Squibb, Teva, and Natco have been named defendants in an antitrust lawsuit in the US by Walgreens Co. regarding Lenalidomide (Revlimid). However, the company believes this matter is without merit. Teva is the ANDA holder and front-end marketing partner for the generic product in the US, reported Business Standard.
For the July- September quarter, the Drugmaker reported a decline of more than 12.74 percent in the consolidated net profit to ₹56.8 crore as compared to ₹65.10 crore during the previous quarter that ended September 2021. The sales of the company rose 14.55 percent to ₹432.10 crore in the quarter that ended September 2022 in comparison to ₹377.20 crore during the same quarter, previous year.
The company has declared a second interim dividend of 75 paise per equity share of Rs. 2. The record date has been set on November 22, with the dividend payable beginning on November 30.
Natco Pharma Ltd., founded in 1981, is a mid-cap company with a market capitalization of Rs. 10,661.34 crore engaged in the pharmaceutical industry. The company is engaged in the development, manufacture and commercialization of complex pharmaceuticals catering to niche therapeutic areas. The Company deals in the production of finished dosage formulations (FDF), which it sells in India, the United States and the rest of the world, as well as active pharmaceutical ingredients (APIs).
According to a Mintgenie poll, an average of 14 analysts have a ‘HOLD’ call on the stock.