Now Reading: Natco Pharma Q1 profit slumps 57% on lower Lenalidomide sales
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Natco Pharma Q1 profit slumps 57% on lower Lenalidomide sales
Natco Pharma's consolidated net profit fell 57% year-on-year to Rs 206.5 crore in the June quarter, driven by lower sales of generic cancer drug Lenalidomide, The Hindu reports. Total revenue dropped 43%…
The Story in Brief
Natco Pharma's consolidated net profit fell 57% year-on-year to Rs 206.5 crore in the June quarter, driven by lower sales of generic cancer drug Lenalidomide, The Hindu reports. Total revenue dropped 43% to Rs 794.4 crore as international formulations revenue halved to Rs 477.1 crore from Rs 1,120.9 crore a year earlier.
The board declared an interim dividend of Rs 1.5 per share, with payment starting August 26. Natco shares ended 5.23% lower on the BSE at Rs 902.40. Revenue from the base business and other segments such as APIs and crop health sciences rose, but could not offset the steep decline in Lenalidomide sales.
The Indian Opinion
Narratives around generic drug earnings are often framed as either a boom or a permanent bust. Natco's single-product dependence on Lenalidomide was always a cliff, not a slope. The base business grew, but growth is meaningless against a 57% profit plunge. The real test is whether the newly acquired stake in Adcock Ingram delivers enough diversification before the next generational blockbuster fades.
Sources (2): ndtvprofit.com, thehindu.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
