Novartis India shares jump more than 6% after parent company announces strategic review

Novartis India Shares Surge, as Novartis AG Announces Strategic Review

New Delhi, Feb 19 (IANS) – Novartis India shares jumped more than 6 per cent on Monday after the parent company, Novartis AG announced a strategic review of its Indian arm. Novartis India was trading at Rs 1,100, up 6.23 per cent on BSE. According to reports, Dr Reddy’s is likely in a race to acquire Novartis AG’s stake. The company’s board of directors took note of the communication received from Novartis AG, regarding their intention to conduct a strategic review to unlock value of their shareholding in the company.

Novartis AG announced a strategic review of Novartis India Limited, a public company listed on Bombay Stock Exchange. The strategic review will include an assessment of the 70.68 per cent shareholding of Novartis AG in the company. Novartis Healthcare Private Limited, the wholly owned subsidiary of the Novartis group in India, however, will not be impacted by the strategic review.

The company made it clear that “there can be no assurance that the strategic review of Novartis India Limited will be completed in 2024, or that the outcome would result in the implementation of any transaction.” Novartis remains committed to India with a significant presence in the country, employing more than 8,100 associates.

Dr Reddy’s, when contacted for a comment on the speculations, said: “In this regard, please note that the company does not comment on market speculations and there is currently no such event or information which requires a disclosure under Regulation 30 of the SEBI Listing Regulations.” The company emphasized that it makes prompt disclosures, as and when any event or information is considered material or warrants such disclosure under the said Regulations.

The strategic review of Novartis India Limited is expected to be a significant development in the business landscape, with potential implications for the pharmaceutical industry in India. The outcome of the review will be closely monitored by stakeholders as it could have wide-ranging effects on the future direction and operations of Novartis India.

The company’s announcement of the strategic review has created a buzz in the market, reflecting the high level of interest and anticipation surrounding this development. As Novartis AG evaluates its strategic options, the impact on Novartis India and its stakeholders will be closely watched in the coming months. With the situation still evolving, all eyes are on the outcome of the strategic review and the potential implications for one of India’s major pharmaceutical companies.