Natco Pharma stock rises 3% after subsidiary invests $8 mn in biotech firm

Shares of Natco Pharma surged up to 2.61 per cent at Rs 1,568.75 per share on the BSE in Wednesday’s intraday deals. Natco Pharma share price rose after the company on Wednesday announced that its wholly owned Canadian subsidiary, NATCO Pharma Inc, has made an investment of $8 million in eGenesis, Inc, a biotechnology company.

eGenesis is at the forefront of xenotransplantation focused on developing safe and effective human compatible organs for transplant. In March 2024, eGenesis announced the world’s first porcine kidney transplant in a living patient. The transplant was authorised by the US Food and Drug Administration (FDA) under the expanded access pathway.

“eGenesis is pioneering a genome engineering-based approach in the development of safe and effective transplantable organs to end the global organ shortage and transform the treatment of organ failure. The eGenesis Genome Engineering and Production (EGEN™) Platform is the only technology of its kind to comprehensively address cross-species molecular incompatibilities and viral risk via genetic engineering to improve the lives of patients in need of a transplant. eGenesis is advancing development programs for kidney transplant, acute liver failure, and heart transplant,” the company said in an exchange filing. 

Headquartered in Hyderabad, India, Natco Pharma operates in the US, Canada and Europe. The company is involved in the discovery, development, manufacturing and commercialization of finished dosage formulations (FDF) and active pharmaceutical ingredients (APIs). It sells active pharmaceutical ingredients (APIs) in the domestic and international markets.

The company's consolidated profit after tax (PAT) in the quarter ended June stood at Rs 668.5 crore, compared to Rs 420.3 crore in the year-ago period. 

Consolidated revenue for the quarter stood at Rs 1410.7 crore, compared to Rs 1,160.2 crore, in the corresponding quarter the previous year.

Natco Pharma’s earnings before interest tax, depreciation, and amortisation (Ebitda) margin stood at 60.5 per cent in Q1FY25, compared to 47.2 per cent in the year-ago period, as per its FY24 investor's presentation.

Meanwhile, Ebitda for the quarter stood at Rs 852.9 crore , compared to Rs 547.7 crore in the corresponding quarter last year.

The company has a total market capitalisation of Rs 27,861.44 crore. Its shares are trading at a price to earnings multiple of 17.81 times with an earning per share of Rs 85.85 per share.

At 02:41 PM; the share price of the company was trading 1.99 per cent higher at Rs 1559.15. By comparison, the BSE Sensex was trading 0.38 per cent lower at 82,244 levels.