Natco Pharma, a Rs.300 crore pharma major
from Hyderabad, has informed that its US based partnership firm K & C
Pharmacy, New Jersey, USA has sold its right, title and interest in a
retail pharmacy outlet known as Nicks' Drugs, based in Newark, New
Jersey. Natco has a partnership of 75 per cent in the K&C Pharmacy.
This sale will not impact significantly on the revenues and
profitability of Natco Pharma.
Nicks' Drugs revenues were
predominantly guided by the Medicaid reimbursements from the State of
New Jersey. Of-late, however, owing to budgetary restrictions, there
have been significant reductions in the reimbursements.
With this
sale, Natco Pharma now owns and operates only one retail pharma store
-through its wholly owned subsidiary - Natco Pharma Inc., - known as
SaveMart Pharmacy, based in Lancaster, Pennsylvania, USA. This store is
doing well and is not dependent on Medicaid reimbursements.