Natco Pharma’s Stock Performance Analyzed
Natco Pharma, a drug maker based in Hyderabad, saw its stock price drop sharply on November 2, 2025. The stock fell as much as 2.4% to ₹844.05 per share, a significant decrease that’s drawing attention. This drop is happening alongside some concerns raised by a key regulatory body, the U.S. Food and Drug Administration (USFDA).
Key Points
- USFDA found issues during a factory inspection of Natco Pharma.
- Seven observations in Form 483 raised concerns about operations.
- Stock fell sharply, down 2.4% with a 38% year-to-date decline.
- Lower revenue growth compared to the previous year’s results.
- Increased expenses impacted profitability during the Q2 period.
- Natco Pharma focuses on generics, branded drugs, and oncology therapies.
The USFDA inspected Natco Pharma’s factory in Manali and Chennai. The inspection, which took place from November 17th to 21st, 2025, resulted in seven observations noted in a Form 483. This form highlights areas where the facility needs improvement during inspections.
Natco Pharma believes these observations are mostly about following standard procedures and that they’re committed to fixing them quickly. The company has a market value of approximately ₹15,356.88 crore.
During the second quarter (Q2) ended September 30, 2025, Natco Pharma’s net profit dropped by 23.44% to ₹517.9 crore. This decrease was mostly due to higher spending on research and development, plus a one-time bonus for employees.
The company’s total revenue was ₹1,363 crore, slightly lower than the ₹1,371.1 crore they made during the same time last year. Revenue from selling active ingredients (APIs) was ₹53.9 crore, down from ₹49.6 crore the previous year. Natco Pharma is known for developing and selling a wide range of medicines, including specialized drugs for treating cancer.
“These observations, while noted, represent a standard part of the regulatory process, and Natco Pharma is confident in its ability to address them effectively.”
