Natco Pharma Share Price Falls After USFDA Issues 7 Observations at Chennai API Plant

Natco Pharma’s share price (NSE: NATCOPHARM) slipped over 2% after the company confirmed that the US Food and Drug Administration (USFDA) issued 7 Form-483 observations for its API facility in Manali, Chennai. The stock hit an intraday low of ₹844.05, its sharpest fall since November 6, before recovering slightly to ₹860, down 0.5% by 9:57 AM. In comparison, the Nifty 50 gained 0.09%.

Natco Pharma Share Price Movement

This marks the second consecutive day of decline for Natco Pharma. So far in 2025, it has fallen 38%, significantly underperforming the 10.3% rise in the Nifty 50. The company’s market value currently stands at ₹15,356.88 crore.

Details of the USFDA Observations

The USFDA conducted an inspection at Natco’s Chennai API unit between November 17 and 21, 2025. After the inspection, the company received 7 observations, which it believes are procedural and can be resolved. Natco stated that it is confident about addressing all points raised by the regulator.

Natco Pharma Financial Performance (Q2 FY26 Earnings Results)

In Q2 FY26, Natco Pharma reported a 23.44% drop in consolidated net profit to ₹517.9 crore, mainly due to higher research and development spending and a one-time employee bonus. 

Revenue slipped slightly to ₹1,363 crore, down from ₹1,371.1 crore last year. Export formulation revenue also declined to ₹1,147 crore from ₹1,211.3 crore, while the API division recorded ₹53.9 crore, compared to ₹49.6 crore a year ago.

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About the Company

Natco Pharma, headquartered in Hyderabad, manufactures and sells both generic and branded medicines. The company also operates in speciality pharma and crop protection. Known for strong R&D capabilities, Natco has a leadership position in oncology, especially in targeted therapies in India.

Conclusion

Natco Pharma’s shares fell after receiving seven USFDA observations at its Chennai API facility, adding to its already weak market performance this year. While the company expects to resolve the issues, investors remain cautious due to regulatory concerns and recent pressure on its earnings.

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