Natco Pharma shares gained in trade on Thursday after the company announced to have made a strategic investment of $2 million in United States-based ISCA Inc. for bio control of pests. With this investment Natco Pharma acquires a 5.79 per cent stake in the Delaware-based company, which specialises in innovative pest control solutions for agriculture.

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The investment deal was finalised on August 30 as part of Natco Pharma's strategic plan to diversify its businesses, the company said in a filing to the stock exchanges.

ISCA Inc. reported a turnover of $9,338,426 for the fiscal year that ended on December 31, 2022. The company's expertise lies in producing pesticides that disrupt the mating patterns of pests, providing a novel approach to tackling insect populations in the agricultural sector.

Natco Pharma's move to invest in ISCA Inc. mirrors its dedication to innovation and environmentally conscious practices. The investment aligns with Natco Pharma's pursuit of expansion and its support for sustainable agricultural solutions.

The financial outlook for Natco Pharma remains positive, as evidenced by a 31 per cent year-on-year surge in net profit to Rs 420 crore for the April-to-June quarter. Moreover, the company's revenue experienced a noteworthy 28 per cent year-on-year increase, reaching Rs 1140 crore in the same period.

Natco Pharma submits ANDA for USFDA approval

In addition to this investment, Natco Pharma recently submitted an Abbreviated New Drug Application (ANDA) for a generic version of Erdafitinib Tablets, a medication used in treatment of advanced urothelial carcinoma. Natco Pharma's core activities include developing, manufacturing and marketing therapeutic products. The company is currently facing a lawsuit from Janssen Pharmaceutica NV, Janssen Biotech Inc. and Astex Therapeutics Ltd. over the Erdafitinib ANDA. 

Shares of Natco Pharma were trading 1.24 per cent higher at Rs 915.60 apiece on BSE at 2:07 PM.