Novartis India Review: Potential Acquisition by Dr. Reddy’s
Novartis AG, a Swiss pharmaceutical giant, has commenced a strategic review of its subsidiary, Novartis India Limited. This evaluation encompasses various aspects, including Novartis AG’s substantial 70.68 percent shareholding in the Indian entity.
Dr. Reddy’s Shows Interest in Acquiring Novartis AG’s Stake
Indian pharmaceutical major Dr. Reddy’s is reportedly eyeing Novartis AG’s stake in Novartis India, signaling potential changes in the Indian pharmaceutical landscape. This development suggests dynamic shifts within the industry.
No Guarantee of Outcome or Timeline
It’s essential to note that there’s no assurance regarding the timeframe or outcome of the strategic review. Novartis AG remains committed to India but has emphasized that the review’s conclusion remains uncertain.
Novartis India’s Financial Standing
Novartis India, listed on the stock exchange, boasts a significant presence in the Indian market. With revenue of Rs 378.7 crore in FY24 and a market capitalization of Rs 2,556.61 crore, the company holds considerable value in the pharmaceutical sector.
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Impact on Novartis India’s Operations
Novartis India operates independently from Novartis Healthcare Pvt Ltd, a subsidiary of the Novartis group in India. The strategic review may potentially affect the company’s operations and future trajectory.
Restructuring Efforts
In February 2022, Novartis streamlined its operations by transferring sales and distribution rights of established medicines to Dr. Reddy’s Laboratories. This move resulted in job cuts and aimed to optimize operations within the company.
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Continued Commitment to India
Despite the strategic review, Novartis AG reaffirms its commitment to India. The company has expanded its presence in recent years and employs over 8,100 associates in the country, highlighting its enduring engagement with the Indian market.
Novartis India is likely on the block. Sources indicate that Dr Reddy’s is likely in a race to acquire Novartis AG’s stake in Novartis India, reports @VivekIyer72 pic.twitter.com/RlvfsBdPyG
— CNBC-TV18 (@CNBCTV18Live) February 17, 2024
