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Natco Pharma Stock Jumps on Regulatory Clearance for Semaglutide Launch in India

Approval for high-demand diabetes and weight-management drug sparks strong investor response

• By PharmaNews Live Desk
• New Delhi
• Feb 16, 2026

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Shares of Natco Pharma rallied sharply after the company secured regulatory approval to manufacture and market Semaglutide in India, a key drug used in the treatment of type-2 diabetes and obesity, boosting market confidence ahead of its planned commercial rollout.

Shares Rally on Regulatory Green Light

Natco Pharma’s stock surged over 11 per cent in early trade after the company announced it had received approval from India’s drug regulator to launch a generic version of Semaglutide Injection in the domestic market. The counter witnessed strong buying interest on both benchmark exchanges, significantly outperforming broader indices.

Market participants reacted positively to the development, viewing the approval as a major milestone for the company’s domestic formulations portfolio, particularly in a fast-growing therapeutic segment.

Semaglutide Approval and Launch Timeline

In a regulatory disclosure, Natco Pharma said it had received clearance from the Central Drugs Standard Control Organisation (CDSCO) to manufacture and market generic Semaglutide Injection in India. The company added that the product is expected to be launched in the Indian market in March 2026.

Semaglutide is prescribed for adults with inadequately controlled type-2 diabetes mellitus as an adjunct to diet and exercise. The drug is also increasingly used for chronic weight management, making it one of the most in-demand therapies globally within the GLP-1 receptor agonist category.

Financial Performance Supports Market Optimism

The regulatory approval comes against the backdrop of a steady financial performance by the company. Natco Pharma recently reported a year-on-year increase in consolidated net profit for the quarter ended December 31, 2025, supported by improved revenues and operational efficiency.

Revenue from operations recorded a strong rise during the quarter, reflecting continued traction across key business segments.

The company’s board also declared a third interim dividend of ₹1.5 per equity share for the financial year 2025-26, reinforcing investor confidence in its earnings outlook.

Board Decisions and Overseas Expansion Plans

Alongside the drug approval, Natco Pharma announced several strategic and governance-related decisions. The board approved the re-appointment of Venkaiah Chowdary Nannapaneni as Chairman and Managing Director for another year, effective April 1, 2026.

The company also received approval to incorporate a wholly owned subsidiary in Chile, with a proposed investment of up to $300,000, signaling continued focus on strengthening its international footprint.

Broader Sector Tailwinds

The stock’s sharp rise also aligned with positive sentiment across the pharmaceutical sector, with healthcare stocks trading higher amid expectations of sustained demand for chronic therapy drugs and increased domestic manufacturing opportunities.