Report: Dr. Reddy’s Considering Acquisition of Novartis AG’s Majority Stake in Novartis India

Hyderabad-based Dr. Reddy’s Laboratories is reportedly eyeing Novartis AG’s entire stake in Novartis India. Novartis AG, a Swiss pharmaceutical firm, is set to conduct a ‘strategic review’ of its listed entity in India, Novartis India, holding a 70.68% stake, as per the Economic Times.

According to CNBC TV18 report, multinational Dr. Reddy’s is interested in acquiring a domestic-focused portfolio, possibly offering a controlling premium in the targeted company. Responding to the news, a Novartis India spokesperson said, “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.”

The strategic review will have ‘no impact’ on Novartis Healthcare Private Limited, an entity separate from Novartis India that carries out clinical trials at more than 300 sites in India, including a corporate center, commercial organization, and research and development (R&D) teams.

“We remain deeply committed to India with a footprint that has expanded significantly in recent years,” the company said in a statement, adding that Novartis AG employs over 8100 associates in India.

As part of its strategic review, Novartis AG is open to considering a potential sale of its stake in Novartis India, and Dr. Reddy’s Laboratories has emerged as a prospective buyer. The outcome of the strategic review is eagerly anticipated within the pharmaceutical industry and could signal significant changes in the Indian pharmaceutical market. Stay tuned for more updates on this developing story.