18 February 2024 – Hyderabad-based pharmaceutical company Dr Reddy’s Laboratories is reportedly considering the acquisition of Novartis AG‘s entire stake in Novartis India. Novartis AG, a Swiss pharmaceutical firm, is initiating a ‘strategic review’ of its listed entity in India, Novartis India, including the assessment of its 70.68% stake.
In a potential strategic move, Dr Reddy’s Laboratories is exploring the acquisition of Novartis AG’s majority stake in Novartis India. Novartis AG is set to conduct a comprehensive ‘strategic review,’ encompassing its significant shareholding in Novartis India.
About Dr Reddy’s Laboratories:
Founded in 1984 by Dr. K. Anji Reddy, Dr Reddy’s Laboratories is a leading pharmaceutical company based in Hyderabad. The company has gained prominence for its global presence and diverse pharmaceutical portfolio.
Key Details:
Dr Reddy’s is reportedly interested in acquiring a domestic-focused portfolio, with potential plans to offer a controlling premium for the targeted company. Novartis AG’s ‘strategic review’ includes an evaluation of its 70.68% stake in Novartis India, a listed entity in the country.
While no decision has been finalized regarding the outcome, Novartis India clarified that the review would have no impact on Novartis Healthcare Private Limited, a separate entity conducting clinical trials and other activities.
Responding to the reports, a spokesperson from Novartis India stated, “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 company reaffirmed its commitment to India, emphasizing its significant expansion in recent years.
Conclusion:
The potential acquisition by Dr Reddy’s Laboratories signifies a strategic move in the pharmaceutical sector. Novartis AG’s ‘strategic review’ will likely have broader implications for both companies involved. The outcome will be closely watched within the industry as it unfolds, impacting the pharmaceutical landscape in India.
