Alkem Laboratories Limited (NSEI:ALKEM) is in discussions to acquire Novartis India Limited (BSE:500672) from its Swiss parent, Novartis AG (SWX:NOVN), sources revealed to CNBC-TV18 on September 26, 2024. This deal is expected to be valued at approximately INR 20,000 million. Sources have also said that non-binding bids have been submitted, and both companies are currently engaged in advanced round of negotiations.
This development follows Novartis AG's announcement in February of its intention to divest its 70.6% stake in Novartis India. As of June quarter, Alkem Labs had reported cash reserves of around INR 35,000 million. As reported earlier by CNBC-TV18, Dr. Reddy's Laboratories (DRL) is also in fray to acquire Novartis India's stake.
Sources have also indicated that Zydus has also joined the race. CNBC-TV18 has reached out to Alkem Labs for a comment, but no response has been received so far. On February 16, Novartis announced a strategic review of Novartis India, which would include assessment of its stake in the later.
It also said the strategic review would not impact Novartis Healthcare. Novartis India Ltd. is separate from Novartis Healthcare Pvt Ltd, the wholly owned subsidiary of Novartis group in India. It has a portfolio of products for the treatment of diabetes and chronic neurological, cardiological and dermatological illnesses.
