 "Novartis")
Novartis, the Swiss pharmaceutical giant, is considering selling its listed unit in India, Novartis India Limited (NIL), while continuing to expand its research and development (R&D) operations in the country through its unlisted unit, Novartis Healthcare Private Limited (NHPL), a senior company official said.
This was revealed by Novartis Global Chief Executive Officer Vasant Vas Narasimhan in an interview with CNBC-TV18, indicating a potential shift in ownership dynamics within the company.
Speaking on the matter, Vasant Vas Narasimhan refrained from confirming or denying the reports of being in talks with Dr Reddy's Laboratories. He said, "I can't comment on specific opportunities for companies, but certainly the thought process is to see if there's a better owner for this business," Narasimhan stated. "Is it better for us to continue to own this listed entity or to partner it or to sell it to another logical buyer? So we'll see how it goes, too soon to say at the moment."
The multinational operates in India through two entities: Novartis India Limited (NIL) and Novartis Healthcare (NHPL). Narasimhan indicated that NIL would be divested to a new owner while NHPL would continue its operations and expansion stating, "The strategic question is, are we the right owner for that entity given that our future investment will primarily be through NHPL."
Novartis is valued at $210 billion. Novartis owns a 70.6 per cent stake in NIL, which focuses on brands launched in India over two decades ago. Recent years have seen Novartis transferring selling rights of some brands, such as the Voveran Range and Methergine, to DRL and JB Chemicals.
Narasimhan emphasised that India remains pivotal for talent sourcing and research, despite a shift away from manufacturing. NHPL, where 8,300 of Novartis' 10,000 Indian employees are based, is set to witness a 10 per cent increase in headcount.
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Reports have claimed that DRL is in talks with Novartis for a potential buyout deal.
Emails sent to DRL and Novartis went unanswered till the time of going to press.
