Novartis-Dr Reddy’s Sales Pact, Job Cuts: Are Foreign Firms Altering India Push?

Novartis India To Let Go Of About 400 Employees

Novartis India hands over sales and distribution of certain established brands, accounting for 50% of the 2020-2021 product revenues, to Dr Reddy’s as more foreign firms opt to leverage ground strengths of local players. Does it represent a wider trend where foreign firms are re-calibrating operations in India to focus energies on specialty and patented products?

partnering
Novartis Inks Deal For Established Brands With Dr Reddy's • Source: Alamy

Novartis India Ltd. has struck a sales and distribution agreement for a range of established medicines with Dr. Reddy's Laboratories Ltd., a move that is expected to widen access to these drugs but will also see the Swiss multinational let go of around 400 employees in the country.

The arrangement combines Novartis’ manufacturing and development synergies with its Indian partner’s sales and distribution strengths. “Barring unforeseen circumstances, this...

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