Indian pharmaceutical major Dr. Reddy’s is reportedly in the running to acquire Novartis AG’s stake in Novartis India, marking a significant development in the pharmaceutical landscape. A report by CNBC TV18 suggests that Dr. Reddy’s has expressed interest in obtaining a controlling premium in the domestic-focused portfolio of Novartis India.
Novartis AG’s Strategic Review and Dr. Reddy’s Interest
On February 16, Novartis AG, the Swiss pharmaceutical giant, initiated a strategic review of its subsidiary, Novartis India Limited. The review encompasses various aspects, including Novartis AG’s substantial 70.68 percent shareholding in the Indian entity. Dr. Reddy’s interest in acquiring a stake in Novartis India indicates a potential strategic move to strengthen its position in the Indian pharmaceutical market.
Response and Secrecy Surrounding the Deal
In response to an inquiry by Moneycontrol, Dr. Reddy’s declined to comment on the matter, maintaining a level of secrecy around the potential acquisition. The silence from the pharmaceutical company adds an air of anticipation to the unfolding situation, leaving industry experts and stakeholders curious about the outcome.
History of Collaboration: Novartis and Dr. Reddy’s
In February 2022, Novartis took steps to streamline its operations by transferring sales and distribution rights of established medicines to Dr. Reddy’s Laboratories. This move resulted in approximately 400 job cuts and included a sales and distribution agreement covering medicines like the Voveran range, Calcium range, and Methergine.
As the pharmaceutical industry witnesses dynamic shifts and strategic realignments, Dr. Reddy’s interest in Novartis India reflects the continuous evolution of the market and the pursuit of growth opportunities by major players.
