Novartis sells 71% stake in India unit to private equity consortium for USD159M

INDIA—Novartis has decided to exit one of its key businesses in India after years of signaling a shift in strategy.

The Swiss pharmaceutical giant announced on February 20 that it will transfer its 70.68% stake in Novartis India Limited to a consortium of private equity firms.

The publicly traded company, listed on the Bombay Stock Exchange, primarily manages older, off-patent drugs across therapeutic areas, including immunology, neuroscience, and pain management.

Three private equity firms—ChrysCapital Fund X, WaveRise Investments, and Two Infinity Partners—will acquire the majority stake in a deal valued at approximately USD 159 million, according to Reuters.

This valuation closely matches the USD 161 million figure Novartis assigned to the unit when it launched a strategic review in February 2024.

Refocusing on Innovation

The sale reflects Novartis’s broader strategy to concentrate on innovative pharmaceuticals rather than generic products.

This approach gained momentum after the company spun off Sandoz, its generics and biosimilars division, in 2023.

Beyond acquiring the 71% stake, the private equity buyers have extended an offer to purchase an additional 26% of Novartis India shares from public shareholders.

This secondary offer totals 5.52 billion Indian rupees (USD 61 million), according to a separate filing with the Bombay Stock Exchange.

Following the announcement, Novartis India’s share price surged 20% on Friday trading.

Maintaining India presence

Despite divesting Novartis India Limited, the pharmaceutical company plans to maintain a significant presence in the country.

Novartis will continue operating its subsidiary Novartis Healthcare Private Limited, which serves as the commercial arm for the company’s operations in India.

The drugmaker will also retain its corporate center in Hyderabad and its research and development teams across the country.

Recent business adjustments

Before initiating the strategic review, Novartis India entered a sales and distribution partnership with Dr. Reddy’s Laboratories in 2022.

This collaboration aimed to expand access to specific medications, including Voveran for pain relief and Methergine, which treats severe postpartum bleeding.

The partnership combined Novartis India’s manufacturing capabilities with Dr. Reddy’s extensive distribution network, though it resulted in approximately 400 job cuts.

Currently, Novartis employs over 9,000 people in India.

U.S. expansion plans

The India divestiture coincides with Novartis’s substantial investment commitments in the United States.

Last April, the company pledged USD23 billion over five years to build and expand ten American facilities, responding to the Trump administration’s pharmaceutical tariff concerns.

In January, Novartis announced plans for a 35,000-square-foot radioligand therapy facility in Winter Park, Florida.

This plant will join two other facilities in New Jersey and California to produce radiopharmaceutical cancer therapies, including Lutathera and Pluvicto.

The transaction for Novartis India Limited is expected to close during the third quarter of 2026.