The board of Natco Pharma at its meeting held on 25 September 2025 has given their in-principle approval to evaluate the demerger of the Agro business of the company into a separate entity.

The management believes that this move shall enable value unlocking of the core business (pharmaceuticals) and enhance long-term growth. Further, it also provides operational flexibility, focused and dedicated management (for respective businesses), different brand positioning for each legal entity.

As a part of the proposed reorganization, the Company may retain a small minority stake in the resulting company. This is to support the company in terms of common services such as R&D, Patents, etc. Support via Transitional Service Agreements (TSAs) at arm's length pricing.

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