PH Kurian, the former Controller General of Patents who authorized India’s first compulsory license in 2012, has passed away at 67. His ruling enabled Natco Pharma to produce an affordable generic version of a critical cancer drug, creating a historic shift in public health access. Today, Natco Pharma operates in a different environment, recently reporting revenue volatility while planning a ₹2,000 crore capital raise to fund future growth.
PH Kurian, the former Controller General of Patents, Designs and Trademarks, passed away on August 26, 2026, at the age of 67. A career civil servant and IAS officer, Kurian is best remembered in the financial and legal communities for a single, defining regulatory decision in 2012. As the Controller General, he granted India’s first compulsory license for the kidney cancer drug Nexavar, which was patented by the multinational corporation Bayer.
This decision allowed Hyderabad-based Natco Pharma to manufacture a generic version of the high-cost medication. At the time, the ruling was seen as a massive step in balancing intellectual property rights with the need for affordable medicine in India. The order reduced the monthly cost of treatment from approximately ₹2.8 lakh to about ₹8,800, fundamentally altering the market dynamics for the drug.
Impact on Natco Pharma’s Trajectory
For Natco Pharma, the 2012 license was a turning point that established its credibility in the oncology and specialty drug segments. While the ruling remains a landmark legal precedent for public health, the pharmaceutical landscape has shifted significantly over the last 14 years. Today, Natco Pharma’s business model is characterized by significant earnings volatility, often linked to the timing of its product launches rather than steady, predictable volume growth.
Investors looking at the company today see a business facing different pressures than those of a decade ago. In its latest financial report for the first quarter of fiscal year 2027, Natco Pharma recorded a 44% decline in revenue. This dip highlights the "lumpy" nature of its earnings, where performance is often tied to specific window-based generic opportunities in international and domestic markets. Unlike more diversified pharmaceutical giants, Natco’s revenue can fluctuate heavily depending on the success and timing of its niche product pipeline.
Current Strategic Pivot
To manage this volatility and reduce its reliance on periodic generic launches, Natco Pharma has been recalibrating its growth strategy. The company has announced plans to raise ₹2,000 crore through a Qualified Institutional Placement (QIP). This capital is intended to fund future acquisitions and expand the company’s capabilities.
For shareholders and market observers, the key focus has moved from regulatory precedents to execution risk. The company faces ongoing challenges such as intense competition in generic markets, potential shifts in drug pricing regulations, and the operational risks common to the pharmaceutical sector. As of August 27, 2026, the company’s stock was trading at approximately ₹857.60. Investors are now closely monitoring how the company utilizes its upcoming capital raise to diversify its business and stabilize its revenue stream, moving beyond the high-margin, episodic product model that defined its growth in the years following the 2012 patent ruling.