Hyderabad-based Dr Reddy’s Laboratories is reportedly looking to pick up Novartis AG’s entire stake in Novartis India. This comes a couple of days after the Swiss pharmaceutical firm announced that it will be carrying out a strategic review of Novartis India. The ‘strategic review’ includes an assessment of Novartis AG’s 70.68% stake in Novartis India.
According to a report in CNBC TV18, in February 2022, Novartis streamlined its operations by transferring sales and distribution rights of established medicines to Dr Reddy’s, resulting in approximately 400 job cuts.
The exclusive sales and distribution agreement includes medicines such as the Voveran range, calcium range and Methergine.
While Dr Reddy’s declined to comment on the matter, Novartis India responded: “While Novartis AG has commenced the strategic review that will include an assessment of its 70.68% shareholding in Novartis India Limited, no decision has yet been taken regarding the eventual outcome.”
According to the Swiss pharma giant, the exercise will have ‘no impact’ on Novartis Healthcare Private Limited.
Novartis Healthcare is an entity separate from Novartis India, as per the company. The former conducts clinical trials at more than 300 sites in the country, and includes a corporate centre, a commercial organisation, and research and development (R&D) teams.
Last month, Novartis India vice-chairman and managing director Sanjay Murdeshwar announced his resignation with effect from April 2, 2024.
In the three months ended December 31, 2023, Novartis India said, it posted a Rs 26-crore profit, compared to Rs 7.6 crore in the corresponding period last year. Total income stood at Rs 106 crore in the quarter under review, compared to Rs 88 crore last year, in the same period.