Synopsis:
Natco Pharma surged 6 percent after the Delhi High Court dismissed Roche’s appeal, clearing the way for the launch of its affordable generic Risdiplam, improving treatment access for SMA patients.
A pharmaceutical stock surged 6 percent on Thursday after a landmark court ruling cleared the path for the launch of a lifesaving drug at an affordable price. Investor sentiment was buoyed by the Commercial Appellate Division of the Delhi High Court dismissing an appeal by Roche, removing the final legal hurdle for the company to introduce its generic version of Risdiplam in India. The ruling is expected to significantly enhance access to treatment for Spinal Muscular Atrophy (SMA) patients.
Natco Pharma Limited, with a market capitalization of Rs. 15,047.92 crore, opened at Rs. 841.05, touched a high of Rs. 862.65. The stock’s rise from the previous close of Rs. 813.55 to its high represents an approximate 6.0 percent gain, reflecting strong market reaction to the favorable legal development.
What’s the News?
The Commercial Appellate Division of the Hon’ble Delhi High Court dismissed an appeal filed by Swiss pharmaceutical giant F. Hoffmann-La Roche AG. The appeal sought to challenge an earlier order by the Ld. Single Judge of Delhi High Court dated 24th March 2025, which had denied Roche’s plea for an injunction against Natco Pharma.
The Single Judge’s ruling had allowed Natco to launch a generic version of Risdiplam, a drug used to treat Spinal Muscular Atrophy (SMA), emphasizing both the patent invalidity and public interest considerations.
SMA is a severe neurodegenerative disease and a leading cause of infant mortality. With limited treatment options and prohibitive pricing of the imported drug, the Single Judge had highlighted the need for affordability and access. By dismissing Roche’s appeal, the Division Bench has removed the final legal barrier, enabling Natco to make the treatment available at a significantly reduced cost.
Natco Pharma has announced it will launch Risdiplam immediately, pricing it at an MRP of Rs. 15,900, an enormous reduction compared to Roche’s imported version priced at around Rs. 6 lakh.
The company also plans to extend additional discounts through its patient access programme for deserving patients, consistent with its stance before the court. This ruling is expected to make a meaningful difference for Indian patients afflicted by SMA, providing both hope and financial relief.
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Financial Snapshot – Q1 Summary
Quarter-on-Quarter (QOQ) Performance: Natco Pharma’s sales rose from Rs. 1,221 crore in the previous quarter to Rs. 1,329 crore, marking an increase of approximately 8.8 percent.
Operating profit increased from Rs. 548 crore to Rs. 571 crore, up 4.2 percent. PBT rose from Rs. 506 crore to Rs. 572 crore, reflecting a growth of 13.0 percent, while net profit advanced from Rs. 406 crore to Rs. 480 crore, a 18.2 percent increase.
Year-on-Year (YOY) Performance: Compared to the same quarter last year, sales declined from Rs. 1,363 crore to Rs. 1,329 crore, down 2.5 percent. Operating profit contracted from Rs. 805 crore to Rs. 571 crore, a 29.0 percent decrease. PBT fell from Rs. 804 crore to Rs. 572 crore, down 28.9 percent, while net profit dropped from Rs. 668 crore to Rs. 480 crore, reflecting a 28.1 percent decline.
About the Company
Natco Pharma Limited, headquartered in Hyderabad, India, is a research-driven pharmaceutical company engaged in the development, manufacturing, and distribution of generic and branded medicines, specialty pharmaceuticals, active pharmaceutical ingredients, and crop protection products.
A leading player in oncology and targeted therapies, the company focuses on niche molecules with limited competition in the US market. Natco operates nine manufacturing sites and two R&D facilities in India, with regulatory approvals from the US FDA, Brazil ANVISA, Health Canada, WHO, and others, serving more than 50 global markets.
Written by Manan Gangwar
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