NATCO scouting for retail chains in US

Hyderabad, May 10:Natco Pharma Ltd is scouting for drug retail chains in the US to further strengthen its retail business segment.
“We are in the process of considering some retail chains for a possible buy and interested in buying some big candidates,” Mr Bhaskara Narayana, Vice-President (Finance), Natco Pharma, told.

The Hyderabad-based company has acquired three drug stores in the US so far – Newark Drugs, Nicks Drugs and SaveMart Drugs – which contributed about $38 million revenue out of an approximate total revenue of Rs 350 crore in 2007-08.

The strengthening of retail business augurs well for the anti-cancer drug manufacturer in view of its profitability. “There is about 8 per cent net profit in retail business in the US. In addition, we can have a channel for our own products and understand the markets in a better way,” Mr Narayana said.

Rs 50-cr INVESTMENT

The company is investing about Rs 50 crore in augmenting its production capacity. “A plant for manufacturing of formulations and injectibles and an export oriented unit for cytotoxic injectibles are being set up at Dehradun in Uttarakhand and Kottur in Andhra Pradesh, respectively which will be ready in the next six to eight months,” the Natco official said.

The R&D division has readied two new compounds for the treatment of blood cancer and lung cancer. “We are expecting approval from the Government for clinical trails. The Phase I trails will begin soon,” he said.

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