Natco Pharma surges further on patent case win against Teva

Moneycontrol Bureau

Shares of Natco Pharma rallied more than 4 percent in intraday trade on Monday after strong second quarter numbers and winning of patent battle against Teva last week. It surged more than 19 percent in six consecutive sessions and also touched a record high of Rs 826 on November 14.

The main booster for the stock is its victory in a patent battle against Israeli drug-giant Teva Pharmaceuticals over USD 4 billion multiple Sclerosis drug Copaxone.

A US Supreme Court justice declined a request from Teva for a stay of an appeals court ruling that would strip the company's USD 4 billion-a-year multiple sclerosis drug Copaxone of patent protection in 2014, rather than in 2015.

"The Federal court ruling which upheld our condition that the patent for multiple Sclerosis drug - Copaxone, which is a brand name of Teva would be expiring in May 2014 and not in May 2015. It means that the generic version of this drug can launch in May 2014 This is a welcome news," Bhaskar Narayana, finance director and CFO said.

"If at all the launch takes place in May 2014 there would be three suppliers of multiple Sclerosis drug; one is Teva the innovator, Natco and a third company of Momenta and Sandoz combination," he added.

Meanwhile, Natco Pharma's second quarter (July-September) consolidated net profit rose 28.6 percent year-on-year to Rs 27 crore, but net sales declined to Rs 163 crore from Rs 169 crore during the same period.

At 12:42 hours IST, the stock was trading at Rs 804.10, up 1.47 percent on the BSE.