Natco Pharma buys pharmacy store in US

Hyderabad, Feb. 6 Natco Pharma Ltd has acquired Newark Drugs, a retail pharmacy store based in Newark, New Jersey in the US. This is the third acquisition that the company has made since 2006, the first two being Nicks Drugs and SaveMart Drugs.

Newark Drugs had been acquired by K&C Pharmacy, a US-based general partnership firm, in which Natco has a 75 per cent stake.

Newark Drugs clocks around $5 million in annual sales. With its location adjacent to Nicks Drugs, Natco would target to achieve economics of scale. With the acquisition of Newark, its revenues from the US retail would aggregate to over $35 million in a full year, according to a release.

Natco was open to acquiring a few more stores in the US to strengthen its presence in that country’s retail market, the release added.

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