Novartis India Ltd (NIL) has entered into an exclusive sales and distribution agreement with Dr. Reddy’s Laboratories for some of its established medicines including the Voveran range, the Calcium range and Methergine.
The move to bring NIL’s manufacturing and development synergies together with the sales and distribution forces of Dr. Reddy’s will cause approximately 400 Novartis employees to lose their jobs.
“This strategic business decision results in the separation of approximately 400 employees from Novartis India Ltd due to layoffs. We understand the implications of this difficult decision for those affected and their loved ones and we are expanding severance pay along with outplacement services,” Novartis said in a press release.
The sales and distribution agreement, with Dr. Reddy’s aims to further broaden access of these drugs beyond current geographic areas to benefit many more patients, more efficiently, by significantly expanding the reach of healthcare professionals through an expanded field team, it said. .
Apart from that, Dr. Reddy’s that it will use its promotion and distribution strengths to significantly expand engagement with healthcare professionals with the goal of enabling access to patients in need. “This arrangement will strengthen our portfolio in pain management and women’s health. Our commitment is to build on the legacy NIL has created over the years and we plan to evaluate its capabilities to maintain business continuity,” said CEO-Branded Markets (India and Emerging Markets) of Dr. .Reddy’s MV Ramana.
With the Indian business as a key growth engine, the agreement will strengthen the company’s presence in key therapy areas, said Dr. reddies.
Novartis said that barring unforeseen circumstances, the agreement has the potential to create value for NIL shareholders. Novartis AG retains trademark ownership of these drugs.
Country President and MD of Novartis in India Sanjay Murdeshwar said, “On the one hand, we have entered into this strategic business agreement with Dr. Reddy’s to expand access to our established medicines to help more patients in India efficiently. On the other hand, we understand the implications for the role of our colleagues in Novartis India Ltd and are doing our best to support them.”
SOURCE – www.thehindu.com