Novartis India shares jump more than 6% after parent company announces strategic review

  • IANS
  • Stock Market News
Novartis India shares jump more than 6% after parent company announces strategic review
Credit: © Reuters.

New Delhi, Feb 19 (IANS) Novartis India shares jumped more than 6 per cent on Monday after the parent company, Novartis AG announced a strategic review of its Indian arm.Novartis India was trading at Rs 1,100, up 6.23 per cent on BSE. Earlier in the day it hit a 52 week high.

According to reports Dr Reddy's is likely in a race to acquire Novartis AG's stake. Dr Reddy’s said: “In this regard, please note that the company does not comment on market speculations and there is currently no such event or information which requires a disclosure under Regulation 30 of the SEBI Listing Regulations. In compliance with Regulation 30 of the SEBI Listing Regulations, the company makes prompt disclosures, as and when any event or information is considered material or warrants such disclosure under the said Regulations.”

Earlier, the board of directors of Novartis India took note of the communication received from Novartis AG, Holding Company & Promoter, regarding their intention to conduct a strategic review to unlock value of their shareholding in the company.

“After some deliberations, the Board agreed to support Novartis AG, as may be required, in evaluating their strategic options”, Novartis India said.

Novartis AG announced a strategic review of Novartis India Limited, a public company listed on Bombay Stock Exchange.

The strategic review will include an assessment of the 70.68 per cent shareholding of Novartis AG in the company.

Novartis India Limited is separate from Novartis Healthcare Private Limited, the wholly owned subsidiary of the Novartis group in India.

Novartis Healthcare Private Limited includes the Novartis Corporate Center in Hyderabad, the commercial arm of Novartis in India, and R&D teams, which currently conduct clinical trials at more than 300 trial sites in the country.

The strategic review will not impact Novartis Healthcare Private Limited.

“There can be no assurance that the strategic review of Novartis India Limited will be completed in 2024, or that the outcome would result in the implementation of any transaction,” the company said.

“Novartis remains deeply committed to India with a footprint that has expanded significantly in recent years. Today Novartis proudly employs more than 8,100 associates in India,” it said.

(Sanjeev Sharma can be reached at Sanjeev.s@ians.in)

--IANS

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