Dr Reddy's likely to pick up Novartis AG's total 70.68% stake in Novartis India: Report
Switzerland-based pharma firm Novartis AG will be carrying out a ‘strategic review’ of Novartis India, its listed entity in the country.
Hyderabad-based Dr Reddy's Laboratories is reportedly looking to pick up Novartis AG's entire stake in Novartis India. Swiss pharmaceutical firm Novartis AG will be carrying out a ‘strategic review’ of Novartis India, its listed entity in the country.
The ‘strategic review’ includes an assessment of Novartis AG's 70.68% stake in Novartis India.
‘Interested in acquiring a domestic-focused portfolio’
As per the CNBC TV18 report, the multinational Dr Reddy's is interested in acquiring a domestic-focused portfolio, potentially offering a controlling premium in the targeted company.
Responding to the story, 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.”
Novartis India 'strategic review'
According to the Swiss pharma giant, the exercise will have ‘no impact’ on Novartis Healthcare Private Limited, which is an entity separate from Novartis India. The former conducts clinical trials at more than 300 sites in the country, and includes a corporate centre, a commercial organisation, 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.
Novartis AG employs more than 8100 associates in India.
