The share price of the pharma stock rose by 1% to its intraday high of ₹827.10 per share from its previous close of ₹818.50 on Thursday after the company invested 2 million US dollars in Cellogen Therapeutics Private Limited.
According to the exchange filing, NATCO Pharma Limited has invested $2 million in Cellogen Therapeutics Private Limited, a Delhi-based biotech that specializes in affordable cell and gene therapies, to help India develop such treatments.
Cellogen’s advanced Chimeric Antigen Receptor T (CAR T) cell therapy program aims to reduce relapse risks and is expected to cost between $60,000 and $70,000. The company is also developing gene therapy for thalassemia and sickle cell disease.
The acquisition for ₹15.01 crores represents a 5.38% stake in Cellogen. NATCO Pharma shares Cellogen’s commitment to innovative and cost-effective healthcare solutions, and the acquisition is expected to close by December 31, 2024.
Net revenue of Natco Pharma increased by 138% year over year, from ₹432 crore in Q2FY23 to ₹1,031 crore in Q2FY24. Their revenue fell by 9.5% sequentially from ₹1,140 crore in Q1FY24 to the current levels.
In addition, the company’s net profit rose by 547% year over year, from ₹57 crores in Q2FY23 to ₹2,024 crores in Q2FY24. Their profit decreased by 12% on a quarterly basis from ₹420 crore in Q1FY24 to the current levels.
The company is a small-cap company with a market capitalization of ₹14,700 crores, the share price of the company rose by 15% in the last six months and 52% in the last year.
Natco Pharma Ltd has a low price-to-earnings ratio of 13 compared to its competitors, with a low debt-to-equity ratio of 0.03, a return on equity of 15%, a return on capital employed of 17%, and a net profit margin of 12%.
The company’s promoters hold 49.71%, the general public holds 23.48%, foreign institutional investors hold 12.82%, and domestic institutional investors hold 13.99%.
NATCO Pharma Limited (NATCO) is a vertically integrated, R&D-focused pharmaceutical company that develops, manufactures, and markets complex products in niche therapeutic areas.
Written by Sriram KV
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