Novartis' official spokesperson told The Financial Express that a memorandum of understanding had been concluded for a small portion of the company's Goregoan property, though exact figures on the area or the inflows accruing from the deal could not be ascertained. According to market participants, the company is expected to get around Rs 250 crore from the sale of property. Analysts, however, say that the current land deal is worth between 25-40 crore, though the total property there could be worthover Rs 200 crore. There was no official confirmation on the total price of the land.

Novartis, analysts say, had approximately 75 acres of property at Goregaon in suburban Mumbai, though some part of it (estimated at around 15 acres) was transferred to Ciba Specialty Chemicals at the time of the demerger.

The property at Goregoan was owned by Hindustan Ciba Giegy, prior to its merger with Sandoz to form Novartis India. Hindustan Ciba Geigy had earlier disposed of its factory at Bhandup for over Rs 40 crore.

Another rumour doing the rounds in the market was a possible strategic equity alliance of Cipla with Novartis, though there is no official word on this. According to analysts, only Novartis, Glaxo and Pfizer have the financial muscle to takeover Cipla. Incidentally, Cipla was the only other pharma stock to hit the upper band on both BSE and NSE. The stock rose from its previous close of Rs 1,650 to end at Rs 1,782 on the BSE while it closed at Rs 1,730.75 on the NSE. The volumes have also gallopedfrom an average 6,000 shares to 23,000-levels on the BSE.