Natco Pharma on Monday posted two-fold increase in net profit to Rs.97.3 crore in first quarter ended June partly on back of exclusivity of generic Tamiflu drug in the US market.
The company posted a net profit of Rs. 47.5 crore in the same period over previous year. The company's sales rose 30 percent to Rs. 448.7 crore in the quarter gone by.
However, on sequential basis the net profit was down 47 percent, while sales declined 22 percent. The company had full benefit of generic Tamiflu exclusivity in the fourth quarter of FY17.
Natco launched generic Tamiflu capsules, used for treatment of Influenza, in the US market in December last year after an out-of-court settlement with Gilead and Roche.
The settlement allows Natco for a limited period of exclusivity for Tamiflu drug in the strengths of 30 mg, 45 mg and 75 mg.
The revenue and profit growth for the company during the last two quarters was driven predominantly by the sales of Oseltamivir or generic Tamiflu in the US market.
Natco revenues and profits are expected to moderate from this quarter onwards with more generic competition entering for Tamiflu. Natco teamed up with US-based drug maker Alvogen Inc. to challenge
Tamiflu patents held by Gilead and its partner.
According to IMS Health, Tamiflu oral capsules had US sales of approximately USD 403 million for the 12 months ended December 2015.
Shares of Natco rose 0.50 percent and were trading at Rs.953.90 on BSE at 3.28 pm, while the benchmark Sensex declined 0.23 percent to 32,245.94 points.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!