- 24 May 2022
- ICICIdirect Research
NATCO REPORTS HEADWINDS IN CROP DIVISION
NATCOPHARM - 1247 Change: -10.20 (-0.81 %)News: FMC Corporation has filed a suit against Natco for a Process Patent in Delhi High Court today which covers a process to prepare CHLORANTRANILIPROLE (CTPR) that is set to expire on December 6, 2025. NATCO has submitted to the Court that its CTPR process does not infringe and that it will launch its CTPR product after August 13, 2022, when the CTPR product patent expires with non-infringing process. The next hearing date in this suit is July 18, 2022
Views: CTPR is Natco's first key technical product to be rolled out from its Crop division and Natco is holding significant inventory for the same as launch has been postponed. Due to uncertainty, we have not considered any material contribution from this product in our valuation. However, this would be a key opportunity for the company's crop division and given that ~70% of the usage of this product earmarked for Kharif crops, any delay could be a substantial lost opportunity as more generics player are likely to enter post patent expiry
Impact: Negative