Natco Pharma shares went up to as much as 4% during morning trade on the NSE with the stock reaching a high of Rs 1,408.70. This rise comes after Mylan Pharmaceuticals Inc. and Novo Nordisk reached a settlement regarding the US patent dispute on generic copies of Ozempic (Semaglutide). These generic products are being developed by Natco pharma with Mylan and the resolution is expected to strengthen their market positions.

This pushes up the stock after a three-day decline, following the confidence displayed by investors after the settlement. Such figures are truly vivid: Natco Pharma’s market returns over the norm in the past two years are quite stunning: up 122.04%, based on BSE index data.

It has only achieved some upswing recently; earlier this year, the company had to respond to a warning letter from the US FDA that was sent to its Telangana plant. The FDA physical inspection was carried out from the 9th of October to the 18th of October 2023, observed eight instances of noncompliance listed in Form 483.

This favourable outcome in the patent case may counterbalance past regulatory losses when entering the saturated competitive pharmaceutical market. While investors keep their eye on

this, the resolution could suddenly give a vast boost to the Natco’s portfolio and fortify it’s strategy in the generics segment.