Dr. Reddy’s ends distribution agreement with Novartis India due to ownership change

INDIA— Dr Reddy’s Laboratories Ltd. has terminated its February 11, 2022 agreement with Novartis India Ltd that granted it exclusive rights to distribute and promote selected Novartis brands in India.

The pharmaceutical companies disclosed the development in separate exchange filings, with Dr Reddy’s saying the termination will facilitate a change in the controlling shareholding of Novartis India.

Despite ending the agreement, Dr Reddy’s will continue to commercialise the products covered by the arrangement until September 30, 2026.

Distribution agreement comes to an end

Under the four-year agreement, Novartis India had granted Dr Reddy’s an exclusive and non-transferable right to promote, distribute and sell certain products in the Indian market.

Dr Reddy’s did not disclose the financial implications of terminating the agreement.

The company also did not identify the brands covered by the arrangement or provide further information about the proposed change in Novartis India’s controlling shareholding.

Novartis India separately confirmed that the agreement had been terminated.

Following the termination, the company said it would re-acquire exclusive rights to the affected products and secure market access for them.

The transition is expected to take place after Dr Reddy’s completes its commercialisation activities under the existing arrangement on September 30, 2026.

Neither company disclosed additional terms of the termination or provided details on how the change in commercial rights would affect the individual products.

Novartis India’s product portfolio

Novartis India operates across several therapeutic areas, including pain management, calcium supplementation, gynaecology, neurosciences and transplant immunology.

Its portfolio includes established brands such as Voveran, Calcium Sandoz and Tegrital.

However, the companies did not specify which of these or other products formed part of the distribution and promotion agreement with Dr Reddy’s.

The termination comes as Novartis continues to manage its commercial activities in India through its local operations, while Dr Reddy’s maintains a broad portfolio of generic and branded medicines across international markets.

Dr Reddy’s launches generic Sugammadex in US

Separately, Dr Reddy’s Laboratories has launched a generic version of Sugammadex injection in the US.

The medicine is used to reverse the effects of certain muscle relaxants administered during surgery.

The company introduced the product in 200 mg/2 mL and 500 mg/5 mL single-dose vials.

Sugammadex injection is the generic equivalent of Bridion, a registered trademark of Merck Sharp & Dohme BV.

The US launch expands Dr Reddy’s generic medicines portfolio as the company continues to introduce products across international markets.

Sugammadex is used in surgical settings to help reverse neuromuscular blockade caused by specific muscle relaxants, supporting recovery from anaesthesia.

The company did not disclose additional financial details related to the Sugammadex launch.