Dr. Reddy’s, Novartis India terminate agreement
Dr. Reddy’s Laboratories has terminated its distribution agreement with Novartis India following a change in the latter's ownership. The companies will continue their current commercial arrangement until September 30, 2026.
Why it matters
This shift reflects significant consolidation and ownership changes in the Indian pharmaceutical sector, impacting market access for major drug brands.
Dr. Reddy’s Laboratories has ended its more than four-year relationship with Novartis India, terminating an agreement under which it distributed and promoted select brands of the Swiss drugmaker in India.
The termination of the February 11, 2022, agreement follows a change in the controlling shareholding of Novartis India. It will continue to commercialise the brands covered under the agreement until September 30, 2026, Dr. Reddy’s said in a filing recently.
Separately, Novartis India said the termination agreement was executed on August 7. Consequently, it will re-acquire exclusivity and secure market access for the products for which Dr. Reddy’s was granted exclusive and non-transferable right to promote, distribute and sell.
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