Novartis to exit listed Indian arm in Rs 1,446 crore deal

NEW DELHI: Swiss drug firm Novartis will sell its entire stake of nearly 71% in its listed Indian subsidiary for about Rs 1,446 crore to a clutch of private equity investors, led by ChrysCapital.The exit comes two years after the parent began a strategic review of its Indian subsidiary, including assessing ‌its stake in the Mumbai-based firm, with the objective of focusing on high-value, innovation-led medicines.Novartis AG said in a regulatory filing that it has notified the Novartis India board that it has entered into an agreement with ChrysCapital, WaveRise Investments and Two Infinity Partners to transfer its 70.68% shareholding. The group also announced a mandatory open offer to buy an additional 26% of the company at Rs 860.64 per share. Reacting positively to the news, Novartis India closed 20% up at Rs 996.50 on BSE on Friday.At Davos 2025, Novartis global CEO Vas Narasimhan reaffirmed that the divestment remains on track while underscoring Novartis’s commitment to India’s long-term potential.The Swiss firm operates in India through two entities: Novartis India, the listed company with its legacy portfolio, and the unlisted Novartis Healthcare with its high-value innovative medicines.Post the deal, the parent will retain the latter, its wholly-owned subsidiary, Novartis Healthcare, and expand its portfolio of innovative cardio, renal, metabolic and oncology portfolio.Over the past few years, the company reshaped its strategy by divesting its high-growth ophthalmology brands to JB Chemicals and transferring the distribution of strong legacy brands, including the widely-prescribed Voveran and Calcium range, to Dr Reddy’s Laboratories.The pain medication Voveran and its Calcium Sandoz range will continue to be distributed under the tie-up with Dr Reddy’s, sources told TOI.The company’s best-selling diabetes medicine, Galvus, part of Novartis Healthcare, will also continue to be marketed under an already-existing tie-up with Cipla, they added.All medicines are imported as Novartis has no manufacturing footprint in the country.The deal size reflects the truncated portfolio of Novartis, analysts say. The long-pending restructuring was finally achieved after several roadblocks, and came amid an erosion in its value, following the divested and pruned portfolio, they added. Under the new owners, the company will also change its name to remove all references within 120 days from the completion of the transaction. Besides Voveran, Novartis India’s portfolio includes transplantation immunology therapy, including Simulect, Certican and Sandimmun, and neurosciences medicine, Tegrital. The company’s revenue for FY2025 stood at Rs 356 crore, with a PBT of around Rs 130 crore, and a total employee strength of 56.Novartis' existence in the country dates back to 1947, stemming from Ciba-Geigy, while Novartis India was created in 1996 through a merger of Ciba-Geigy and Sandoz.Upon completion of this transfer of shares, Novartis will complete its transformation into a pure-play innovative medicines company and continue to adapt its footprint for efficient,sustainable long-term growth aligned with its global strategy, a company statement said."Aligned with our global strategy, we are expanding our innovative portfolio marked by recent launches and a strong pipeline of innovative medicines for India," it adds. NHPL includes the commercial arm of Novartis, its Corporate Centre (GCC), and R&D teams, employing 9000 people.