Dr. Reddy's Laboratories Eyes Novartis India Acquisition, Shares at to 52-Week High

19 Feb 2024 , 11:35 AM

Shares of Dr. Reddy’s Laboratories surged over 2%, reaching a 52-week high of Rs 6,453.95, following reports by CNBC-TV18 indicating the company’s interest in acquiring Novartis AG’s stake in Novartis India.

The management of Dr. Reddy’s has expressed a consistent interest in acquiring a domestic-focused portfolio, as highlighted in recent earnings calls. This strategic move aligns with the company’s vision for expansion and consolidation in the pharmaceutical sector.

Switzerland-based pharma giant Novartis AG initiated a strategic review of its subsidiary, Novartis India, on February 16. The review encompasses Novartis AG’s 70.68% shareholding in its Indian arm, indicating a potential divestment or restructuring.

The prospect of Dr. Reddy’s Laboratories entering the race to acquire Novartis India has garnered significant market attention, driving up the share price to new highs. At 11:35 am, shares of Dr. Reddy’s were trading at Rs 6,422 on the NSE, reflecting investor confidence in the company’s growth prospects and strategic initiatives.