Novartis India Limited (NIL) today announced an exclusive sales and distribution agreement with Dr Reddy’s Laboratories (Dr Reddy’s) for a few of its Established Medicines which includes the Voveran range, the Calcium range and Methergine.
This arrangement aims to further broaden access to these medicines beyond the current geographies to benefit many more patients, more efficiently, by significantly extending the reach of healthcare professionals through an expanded field force.
This brings together the manufacturing and development synergies of NIL with the sales and distribution strengths of Dr Reddy’s.
Barring unforeseen circumstances, this has the potential to drive value for shareholders of NIL. Novartis AG will retain Trademark ownership of these medicines.
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.
Sanjay Murdeshwar, Country President and Managing Director, Novartis in India, said, “Today, on one hand, keeping the patient interest at the centre, 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.”
Both organisations will remain fully committed to patients and will continue to focus on providing an uninterrupted supply of medicine.