Dr Reddy's share price jumps 2%; what's driving the rally?
₹6,424 per share. This uptick was followed by a report by CNBC-TV18 revealing the company's participation in the bidding process for Novartis AG's stake in Novartis India. The management of Dr.
Reddy's has consistently expressed interest in acquiring a portfolio with a domestic focus, as highlighted in recent earnings calls. This aligns with their strategic vision for expansion and market consolidation. Also read: Novartis India share price surges nearly 11% to hit a 52-week high as Novartis AG announces sale plans for the co Swiss pharmaceutical giant Novartis AG initiated a strategic review of its subsidiary, Novartis India, on February 16.
This review encompasses Novartis AG's 70.68 percent shareholding in its Indian arm, signaling a potential shift in ownership dynamics within the pharmaceutical sector. Dr. Reddy's has a history of strategic collaborations with Novartis India, with notable agreements in February and April of 2022.
The February deal entailed an exclusive sales and distribution agreement covering medicines like the Voveran range, Calcium range, and Methergine. In April, Dr. Reddy's expanded its portfolio by acquiring Novartis India's Cidmus brand.
With the existing distribution arrangement already encompassing a significant portion of Novartis India's portfolio (approximately 50% of sales), brokerage firm Nomura views Dr. Reddy's as the ideal candidate to acquire Novartis AG's stake in its Indian arm. In a report, ICICI Direct Research said that Dr.
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