Mid-size pharma company Natco Pharma has acquired a majority stake in a drug retail store based in Newark, New Jersey. The store was acquired by a partnership firm in which Natco holds a 75-per cent stake. The cost of acquisition has not been disclosed.
Natco said it has identified pharma retail as a key growth area and would go in for more such acquisitions in future. The company said it would sell generic drugs directly through the retail stores without any tie-up with US-based marketing companies.
The store acquired by the company is expected to report net profits of $1.7 million on revenues of $20 million for the year ended 31 December 2005. Natco said the accounts of the US retail store would be consolidated with its own accounts from February onwards.
The company had reported a net profit of Rs5.25 crore or Rs1.94 per share on total revenues of Rs46.27 crore for the December quarter.
Natco Pharma closed at Rs157.3 (up 2.95 per cent) on the NSE today.