Dr. Reddy’s Interest in Novartis India Stake Acquisition
Dr. Reddy’s Laboratories, a prominent player in the Indian pharmaceutical industry, is actively exploring the possibility of acquiring Novartis AG’s stake in Novartis India, as reported by CNBC TV 18.
Strategic Review Initiated by Novartis AG
On February 16, Novartis AG, a leading Swiss pharmaceutical giant, commenced a comprehensive strategic review of its Indian subsidiary, Novartis India Limited. This review encompasses various facets, prominently featuring Novartis AG’s significant 70.68 percent shareholding in the Indian entity.
Expressed Interest by Dr. Reddy’s
Dr. Reddy’s keen interest lies in acquiring a portfolio primarily focused on the domestic market. The company is reportedly considering offering a premium for a controlling stake in Novartis India.
When approached by Moneycontrol for comments on the matter, Dr. Reddy’s chose not to provide any official statement.
In response to queries by Moneycontrol, Novartis India stated that while Novartis AG has initiated the strategic review process, including an evaluation of its majority shareholding in Novartis India Limited, no conclusive decision has been reached regarding the outcome.
Previous Business Transition
In February 2022, Novartis streamlined its operational structure by transferring sales and distribution rights of established pharmaceutical products to Dr. Reddy’s Laboratories. This transition led to the redistribution of responsibilities and approximately 400 job cuts within Novartis. The exclusive sales and distribution agreement encompassed a range of medicines, including the Voveran range, Calcium range, and Methergine.
