Dr. Reddy’s vying for Novartis’ India arm stake?
Dr.Reddy’s: The report emerged the day after Novartis AG declared a strategic review of its Indian subsidiary. This review, as stated by the firm, encompasses an evaluation of Novartis AG’s 70.68 percent shareholding in the company. Indian pharmaceutical giant Reportedly, Dr. Reddy is vying to acquire Novartis AG’s stake in Novartis India. This development comes on the heels of Novartis AG’s recent announcement of a strategic review of its operations in India.
The strategic review, as stated by the company, encompasses an evaluation of Novartis AG’s 70.68 percent shareholding in the company.
According to a CNBC-TV18 report, Dr. Reddy has shown interest in acquiring a domestic-focused portfolio. This portfolio is owned by Novartis India Ltd, which is separate from Novartis Healthcare Pvt Ltd, a wholly-owned subsidiary of the Novartis group in India. Dr. Reddy might propose a controlling premium for the company they are targeting. The company has a workforce of over 8,100 associates in India. Novartis India reported revenue of Rs 378.7 crore in FY24 and boasts a market capitalization of Rs 2,556.61 crore.
In February 2022, Novartis reorganized its operations, transferring sales and distribution rights of established medicines to Dr. Reddy’s Laboratories. This move led to about 400 job losses. The exclusive sales and distribution agreement encompassed medications like the Voveran range, Calcium range, and Methergine.
