Share price of this mid-cap pharma stock moved down by 2.08 percent on BSE to Rs. 978 in the trading session of Tuesday, compared to its previous closing price of Rs. 999, after receiving a warning letter from USFDA.
With a market cap of Rs. 17,718.4 crore, the shares of Natco Pharma Limited closed in the red at Rs. 983 on NSE, down by 1.7 percent.
In the last six months, it has given positive returns of about 16 percent, and nearly 68.09 percent in the last one year. So far in 2024, it has given positive returns of around 20.12 percent.
According to the latest regulatory filings with the stock exchanges, Natco Pharma Limited received a Warning Letter for its Kothur-based manufacturing facility from the United States Food and Drug Administration (USFDA).
Such warning letter from the USFDA shows violations including poor manufacturing practices, issues with product claims or inaccurate instructions for usage.
As per the filings of 19th October 2023, the USFDA issued eight observations for the company’s Pharma Division located in Kothur Hyderabad following the completion of the inspection conducted from October 9th to October 18th, 2023.
The company does not believe that the Warning Letter will impact its supplies or existing revenues from this facility, but it may cause delays or withholding of pending product approvals from this site.
In terms of financials, the company’s revenue from operations increased by 54.2 percent YoY from Rs. 492 crore in Q3 FY22-23 to Rs. 759 crore in Q3 FY23-24.
The net profit of the company also increased by 243.5 percent to Rs. 213 crore in Q3 FY23-24 from Rs. 62 crore in Q3 FY22-23.
As of December 2023, FIIs hold 13.72 percent of the shares, whereas DIIs hold 11.26 percent of the shares in the company, aggregating to 24.98 percent of the institutional holdings.
Incorporated in 1981, Natco Pharma Limited is a vertically integrated and R&D-focused pharmaceutical company engaged in the business of developing, manufacturing and marketing finished dosage formulations (FDF) and active pharmaceutical ingredients (APIs).
Written by Shivani Singh
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