Novartis India refutes media reports of negotiations with Alkem Labs

Novartis India, has refuted media reports stating that its parent company is in talks with Mumbai-based Alkem Labs for sale of the Indian arm.

The report, however, boosted Novartis stock, which closed 7 per cent higher at Rs1,164.25 on the Bombay Stock Exchange (BSE) on Thursday.

Novartis India had, in a filing with the Bombay Stock Exchange, informed the bourse about a strategic review of pharma major’s India operations.

Novartis India also said it is unaware of any possible interactions of Novartis AG’s investment banker may be having with Alkem Labs or any other party.

A CNBC report quoting unnamed sources on Thursday said that non-binding bids submitted by Alkem indicated a transaction value of Rs2,000 crore.

Novartis AG holds 70.68 per cent stake in Novartis India.

The Swiss parent company in its stock exchange filing also clarified that its India-listed arm and wholly-owned subsidiary, Novartis Healthcare Private Ltd (NHPL), was not under review.

Novartis Healthcare Private Limited, comprises Novartis Corporate Center in Hyderabad and R&D teams and 300 clinical trial sites across the country. 

Novartis also had said with deeper roots in India and over 8,100 employees in its rolls, it remained deeply committed to India.