Natco will out-license molecules to big pharma: Amit Rajan, Director, Celogen Life

In a chat with ET Now, Amit Rajan, Director, Celogen Life says that Micro Labs will quickly come out of the FDA and midcap space as they have a good R&D pipeline.


ET Now: We have seen a spate of mid-cap or the non-large companies getting USFDA approvals. Which amongst the non Nifty companies are the ones do you think will get out of this whole mess?

Amit Rajan: Alembic Pharma is doing good in research and development but Micro Labs will quickly out of the FDA and midcap space, as they have a good R&D pipeline. Apart from these two companies, I do not see any other mid pharma company doing good in this space.

ET Now: What is the future for Natco?

Amit Rajan: Natco is going to out-license lot of molecules to big pharma or Mylan's of the world. And in terms of GNP, as long as the sterile plant remains under cloud they will not be able to supply, but they are planning to out-license their molecule for manufacturing in the US.

ET Now: Will Mylan take care of all the regulatory problems and approvals of Natco? Will the partnership benefit Natco?

Amit Rajan: Partly yes and partly no, because at the moment Mylan entered Strides and it is going lot to USFDA. Mylan is Pfizer's competitor. Mylan will help Natco only to get a trigger faster in terms of re-inspection.

ET Now: Are you bullish on APIs also? Is Dr Reddy's APIs is fine?

Amit Rajan: Yes, Dr Reddy’s API is bullish, Zydus is also bullish in API.

ET Now: Do you own a pharma stock personally?

Amit Rajan: Yes, I own a Sun Pharma stock.

ET Now: In 2020 which are the three companies which will survive the storm and will be significantly larger than what they are?

Amit Rajan: I will be bullish on Sun, Zydus and Divi's API.