- Natco Pharma will launch a generic Semaglutide injection in India next month
- CDSCO approved Natco Pharma’s manufacturing and launch of Semaglutide on Saturday
- Shares of Natco Pharma rose over 11% intraday, becoming the top gainer on NSE
Shares of Natco Pharma Ltd. surged over 11% during early trade on Monday after the Hyderabad-based company said it will launch a generic Semaglutide injection in India next month. The prescription-only medicine is used for the treatment of adults with insufficiently controlled type 2 diabetes mellitus as an adjunct to diet and exercise.
The Central Drugs Standard Control Organisation (CDSCO), under the Ministry of Health and Family Welfare, gave its approval to Natco Pharma for the manufacturing and launch of the drug on Saturday.
Semaglutide, a glucagon-like peptide-1 (GLP-1) receptor agonist, is approved by the US Food and Drug Administration as three separate brand name medications: Ozempic, Wegovy, and Rybelsus. All three brands are available in India. It works by helping the pancreas release a fair amount of insulin when blood glucose levels are high. Insulin directs the muscle and fat cells to take in glucose, which is utilised for energy.
The Indian semaglutide market is expected to be highly competitive with many generics, where Natco will launch its own brand and out-license to two other companies, senior executives told analysts during the third quarter earnings concall.
Semaglutide is projected to be the primary driver for the domestic business, targeting over 20% growth, with 350-400 medical representatives allocated for promotion. In the US, no competitor has FDA approval for semaglutide within 30 months, and Natco Pharma holds sole First-To-File (FTF) exclusivity for significant strengths of both Ozempic and Wegovy, with Ozempic already settled, they said.
Natco Pharma Share Price Movement
Shares of Natco Pharma rose as much as 11.5% intraday to Rs 918.65 on the NSE, compared to a 0.3% gain in the benchmark Nifty 50. The stock was the top gainer in the Nifty 500 index.
The total traded volume so far in the day stood at 25 times its 30-day average. The relative strength index was at 62.
Four out of the 11 analysts tracking Natco Pharma have a 'buy' rating on the stock, four recommend a 'hold' and three suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets is Rs xx, which implies a potential upside of 12%.
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