Pharma stocks were on the move on February 16 on the back of strong Q3 results and positive outlook.
Shares of Natco, Glenmark and Aurobindo Pharma traded up 14, 10 and 2 percent, respectively, intraday and the Nifty Pharma index was up nearly 2 percent.
Natco Pharma hit a 52-week high two days after the company reported a three-fold rise in its net profit to Rs 212.7 crore, supported by strong revenue in the December quarter. The company’s revenue zoomed 54 percent on-year to Rs 758.6 crore.
Nuvama equities maintained their ‘buy’ call on Natco Pharma as they reasoned the company’s focus on complex formulations with strong performance from gRevlimid will provide them with a robust pipeline of products for the US market. Contributions from the rest of the world (RoW) markets picking up is also good for the company, Nuvama added.
While Glenmark Pharma posted a net loss of Rs 330.8 crore in the third fiscal quarter, the company in its management commentary said EBITDA and margins to improve in the coming quarters. The company looks to raise production from its newly acquired Monroe site. Glenmark also expects to commercialise two products from this site.
Aurobindo Pharma announced US FDA completed the inspection of the manufacturing unit of Auro Peptides in Telangana and issued no observations. Aurobindo Pharma’s net profits surged 90.6 percent on-year to Rs 936.2 crore in the quarter.
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