Shares of Natco Pharma rallied 9% in an otherwise weak broader market on Tuesday after the drug maker launched the first generic version of oral cancer drug Revlimid in the U.S. market. The stock outperformed the BSE benchmark Sensex which traded 0.3% lower at 52,689 points. Meanwhile, the BSE healthcare index was quoting at 22,832, up 0.65%.
The homegrown pharma major in an exchange filing said the company, along with its marketing partner Arrow International (an affiliate of Teva Pharmaceutical Industries), has launched the generic version of Revlimid® (Lenalidomide capsules) in the U.S. market.
The Lenalidomide capsules, available in 5mg, 10mg, 15mg, and 25mg strengths, is used for the treatment of multiple myeloma in combination with the medicine dexamethasone, certain myelodysplastic syndromes, and mantle cell lymphoma following specific prior treatment.
“The above strengths of lenalidomide capsules are prescribed in adults for the treatment of (1) multiple myeloma in combination with the medicine dexamethasone, (2) certain myelodysplastic syndromes, and (3) mantle cell lymphoma following specific prior treatment. For more information refer to the prescribing information or other medical resources,” Natco Pharma said in an exchange filing post market hours on Monday.
“NATCO and Teva are launching these strengths of lenalidomide pursuant to a license of patents owned by Celgene (now part of Bristol-Myers Squibb),” it added.
Boosted by the development, Natco Pharma shares opened with a gained of 4.2% at ₹880 on the BSE against the previous close of ₹844.30. During the trade so far, the stock gained as much as 8.97% to hit a high of ₹920.
The pharma stock hit a 52-week high of Rs 1,188.95 and a 52-week low of Rs 750.45 on May 24, 2021 and February 24, 2022, respectively. It currently trades 22.7% lower than its 52-week high and 22.6% higher than its 52-week low levels.
At the time of reporting, Natco Pharma shares were trading 3.25% higher at ₹872 on the National Stock Exchange (NSE).
The stock had been reeling under selling pressure in the recent past, with the share price falling more than 4% in one month and 3.5% since the beginning of the calendar year 2022. In the last one year, it has given a muted return of 2.6% and 53% in the last three years.
For the third quarter ended December 2021, the company has reported 27% growth in consolidated net profit to ₹80.4 crore from ₹63.40 crore of the year-earlier period. The surge in profit was driven by a 53% rise in total income to ₹590.7 crore as against ₹386 crore in the year ago period. The company also declared a third interim dividend of ₹2 per equity share of ₹2 each.