Natco Pharma Limited has increased its investment in US-based biotechnology firm eGenesis, Inc. to $24.70 million. The company raised its latest commitment from the previously disclosed $14.00 million to $16.70 million through its wholly owned subsidiaries.

The updated disclosure, filed under Regulation 30 of SEBI (LODR) Regulations, 2015, marks a revision to an earlier intimation dated August 25, 2026. The increase in investment amount and a change in the participating subsidiaries were the primary modifications to the original proposal.

Investment Structure and Subsidiaries

The total investment of $16.70 million will be executed through convertible promissory notes issued by two of Natco's US subsidiaries. The breakdown of the new capital infusion is as follows:

Both instruments carry an interest rate of 8% compounded annually. At the time of completion, no additional shares are being acquired directly; instead, the companies are purchasing debt instruments that may convert into equity at a later stage. The indicative time period for the completion of this acquisition is October 31, 2026.

Strategic Context and Target Profile

eGenesis is a clinical-stage company focused on genome engineering to develop transplantable organs, aiming to address the global shortage of human donors. The company utilizes its eGenesis Genome Engineering and Production (EGEN) Platform to tackle cross-species molecular incompatibilities and viral risks. Key development programs include kidney, liver, and heart transplants.

In March 2024, eGenesis announced the world's first porcine kidney transplant in a living patient, authorized by the US FDA under the Expanded Access pathway. Subsequent transplants in two additional patients reported exceptionally positive outcomes.

Natco's relationship with eGenesis dates back to 2024, when it initially invested $8.00 million through NATCO Pharma (Canada) Inc. The cumulative investment now stands at $24.70 million.

What the Numbers Show

The shift in investment structure highlights a strategic preference for debt-like instruments over immediate equity dilution or direct share purchases. By opting for convertible promissory notes with an 8% annual interest rate, Natco secures a fixed return component while retaining the option for equity conversion later. This structure allows Natco to support the clinical-stage target's cash burn without immediately locking in valuation risks associated with early-stage biotech equities. Furthermore, the distribution of funds across two separate US subsidiaries (Canada and USA entities) suggests a structured approach to managing cross-border regulatory and tax implications for the parent company.

Natco Pharma 's board approved a ₹1,300 crore rights issue of equity shares to existing shareholders on September 9, 2026. The draft letter of offer was also approved.

Rights issue details

The company specified that the fundraising will be executed through a rights issue, replacing the earlier broader mandate for equity or other securities. The shares will have a face value of ₹2 each. The final number of shares and the issue price will be determined later, along with the record date for eligibility.

A Fund-Raising Committee comprising Chairman V.C. Nannapaneni, Rajeev Nannapaneni, and P.S.R.K. Prasad was constituted to oversee the process.

Impact on demerger scheme

The rights issue is expected to alter the company's capital structure and shareholding pattern. Consequently, Natco Pharma must revise its pending Scheme of Arrangement involving the demerger of Natco Crop Health Sciences Limited.

The company has received observation letters from stock exchanges regarding the original scheme but has not yet filed it with the National Company Law Tribunal. The board decided to update the scheme post-completion of the rights issue to maintain the originally proposed share swap ratio. Revised filings will be submitted to the exchanges after the capital raise is complete.