Domestic pharmaceutical firm Alkem Labs is in talks to acquire the Indian unit of Novartis AG, CNBC-TV-18 reported on September 26. The total value of the deal is likely to be around Rs 2,000 crore, the channel said.
Other pharma majors including Dr Reddy’s and Zydus are also in the race to buy the Indian subsidiary, the report said.
Alkem Labs is the country's fifth-largest pharma company, with a dominant position in anti-infectives and gastrointestinal and pain management drugs along with supplements.
As of now, the Mumbai-based company has submitted non-binding bids and advanced discussions are ongoing, the report added.
In February this year, Swiss pharmaceutical major had announced a strategic review of its subsidiary and said the public listed company is set to undergo an assessment, encompassing various aspects, including Novartis AG's 70.68 percent shareholding in the Indian entity.
Novartis had said it remains "deeply committed to India" with a footprint that has expanded significantly in recent years. Today, Novartis employs more than 8,100 associates in the country.
Separately, Moneycontrol had reported that Alkem Labs is also bidding for KKR-owned JB Chemicals and Pharmaceuticals Ltd and for that it had proposed a stake sale by its promoters.
Moneycontrol reported on September 12 that the Alkem promoters, the Singh family, are willing to cede a substantial, even a controlling, stake to PE funds. Promoters hold a 56.38 percent stake in the company.
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