Why This LIC, Tata Fund-Backed Midcap Stock Is Sliding Today

Natco Pharma’s share price received a jolt in early trade on Friday going down over 2%.

What Happened: The stock trades lower today as the company informed the exchanges that it was named a defendant in a U.S. lawsuit.

Celgene Corporation, Bristol Myers Squibb, Breckenridge Pharmaceutical Inc. and Natco Pharma Ltd. have been named defendants along with others in an antitrust lawsuit in the US by Louisiana Health Service & Indemnity Company, D/B/A Blue Cross and Blue Shield of Louisiana and HMO Louisiana Inc., regarding Pomalidomide, the company informed in an exchange filing.

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The company added it believes this matter is without merit. Breckenridge is the ANDA (abbreviated new drug application) holder and distribution partner for the generic product in the US.

The stock has been on a bull run since the start of the year. On a year-to-date basis, the stock has gone up over 60%. LIC owns a 4.11% stake in the company, while Tata Mutual Fund owns a 1% stake in the company.

Price Action: Natco Pharma’s share price was down 1.64% to trade at ₹899.25 in the early hours of trading on Friday.

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