Indian Government

Novartis India, Dr Reddy’s enter pact to improve sales & distribution of medicines


Multinational drugmaker Novartis India Limited has entered into an exclusive sales and distribution agreement with Dr Reddy’s Laboratories for few of its established medicines, including the Voveran range, the Calcium range and Methergine.

The arrangement, aimed at broadening access to these medicines beyond current geographies to benefit more patients through an expanded field force, would however see a separation of about 400 employees of Novartis, according to a note from the multinational. The parent company, Novartis AG will retain trademark ownership of these medicines, the company added.

‘Potential to drive value’

The arrangement brings together the manufacturing and development synergies of Novartis India with the sales and distribution strengths of Dr Reddy’s. Barring unforeseen circumstances, this has the potential to drive value for shareholders of Novartis India, it added.

“This strategic business decision is leading to the separation of approximately 400 employees of NIL due to role redundancies. We understand the implications of this difficult decision on those impacted and their loved ones and we are extending a severance package along with outplacement services,” the company said.

Sanjay Murdeshwar, Country President and Managing Director of Novartis in India, said, “Today, on one hand, keeping the patient interest at the center, we have entered this strategic business arrangement with Dr. Reddy’s Laboratories to extend access to our established medicines to benefit more patients in India efficiently. On the other hand, we understand the implication on the roles of our colleagues in Novartis India Limited and are doing our best to support them.”

On collaborations, Murdeshwar added, “We are committed to working with organisations that resonate with our purpose of improving and extending people’s lives. To that end, we collaborate with entities such as the government, patient organisations, start-ups, industry associations, healthcare providers, pharmaceutical companies amongst others, who are working towards reducing barriers in the journey of a patient ranging from awareness, diagnosis, access and adherence.”

Expanding footprint

Novartis has a large footprint in India with over 10,000 full time employees. Since January 2020, Novartis has hired more than 1,600 employees across divisions and companies in India are planning to continue this hiring program in 2022, it added.

Over the last five years, Novartis has spent over $300 million in creating an R&D support center and services in India. It is also in the process of expanding further by setting up an additional manufacturing plant at Kalwe, with an investment of approximately $49 million, it said, adding, this plant would manufacture oral cancer medicines for the global market.

Published on

February 11, 2022


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