The fresh investment is being made through Natco Pharma’s wholly-owned subsidiaries — NATCO Pharma (Canada) Inc. will invest $9.5 million, while NATCO Pharma South Africa Proprietary Limited will invest $4.5 million. The investment is being made via convertible promissory notes, according to the company’s exchange filing.
Natco had previously invested $8 million in eGenesis in 2024 through preferred stock.
Investment through convertible notes
The latest investment will be made in cash through convertible promissory notes carrying an 8% annual compounded interest rate. The notes have a principal amount of $9.5 million and $4.5 million, respectively.At the time of completion, no additional shares of eGenesis will be acquired. The indicative completion date for the investment is September 30, 2026, according to the company’s disclosure.
Natco said the investment is aimed at supporting new-age therapeutic programmes addressing critical unmet medical needs. The investment does not constitute a related-party transaction, and the company said its promoters or promoter group have no interest in eGenesis.
eGenesis developing transplantable organs
eGenesis is a clinical-stage biotechnology company based in Cambridge, Massachusetts, focused on using multiplex gene editing and genome engineering to develop porcine solid organs for transplantation into humans.
Its Genome Engineering and Production (EGEN™) platform is designed to address cross-species molecular incompatibilities and viral risks associated with using non-human organs for human transplantation.
The company is currently advancing programmes involving porcine kidney transplantation, acute liver failure and heart transplantation, with the broader aim of addressing the shortage of human donor organs.
In March 2024, eGenesis announced the first porcine kidney transplant in a living patient, authorised by the US Food and Drug Administration under its Expanded Access pathway. The company subsequently performed porcine kidney transplants in two additional patients and said the outcomes had been exceptionally positive.eGenesis was incorporated in October 2015 and remains pre-revenue, according to Natco’s regulatory disclosure. The company operates in the biotechnology sector and has a presence in the US.
USFDA inspection at Visakhapatnam facility
The development comes shortly after Natco Pharma’s Finished Dosage Formulations (FDF) manufacturing facility at Parawada, Visakhapatnam, underwent a US Food and Drug Administration (USFDA) inspection from August 17 to August 21. The inspection concluded with four observations, and the company was issued a Form 483.
Natco said it believes the observations are procedural in nature and is confident of addressing them comprehensively within the stipulated timelines. A Form 483 lists observations made by USFDA inspectors during an inspection and does not represent a final FDA determination on the facility’s compliance with good manufacturing practices.
Shares of Natco Pharma were trading at ₹870 as of 12.39 pm on Tuesday, down 1.6%. The stock has declined over 11% in the last six months, and about 2% since the beginning of this year.
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