Shares of Natco Pharma Ltd surged 3% on Thursday, 18 September, after the company announced that its unit in Hyderabad received EIR from the USFDA. 

According to the most recent regulatory filings, NATCO Pharma Limited revealed that the United States Food and Drug Administration (FDA) performed an inspection of its pharmaceutical division in Kothur, Hyderabad, India. The facility has now received an Establishment Inspection Report (EIR), which the FDA classifies as “Voluntary Action Indicated (VAI)”. 

According to the FDA rules, a VAI classification indicates that the agency does not intend to pursue or recommend any administrative or regulatory actions. NATCO clarified that the inspection was procedural in nature and expressed confidence in its capacity to handle the observations fully.

Natco Pharma reported a minor reduction in revenue from operations, falling approximately 2% year on year, from Rs 1,363 crores in Q1 FY25 to Rs 1,329 crores in Q1 FY26. Similarly, the company’s net profit fell from Rs 668 crores to Rs 480 crores during the same time, an almost 28% year-on-year reduction.

Natco Pharma Limited is a pharmaceutical and agricultural chemicals company that conducts research and development, manufactures and sells bulk medications, and finished dosage formulations. 

The company develops, manufactures, and sells final dosage formulations (FDF), active pharmaceutical ingredients (API), and agrochemicals (both technical and formulation). In the API category, it can create and manufacture products using multi-step synthesis, semi-synthetic fusion technologies, high-potency APIs, and peptides. It has production facilities in India that serve domestic and worldwide markets, including regulated areas such as the United States and Europe.

At 3:10 pm, the shares of Natco Pharma were trading 3.04% higher at Rs 883.35 on NSE. 

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