Novartis, the Swiss pharmaceutical powerhouse, is contemplating a strategic shakeup in India, hinting at the potential divestment of its listed unit, Novartis India Limited (NIL). However, amidst this potential shift in ownership dynamics, the company remains steadfast in its commitment to expanding its research and development (R&D) footprint in the country through its unlisted unit, Novartis Healthcare Private Limited (NHPL).

In an interview with CNBC-TV18, Novartis Global CEO Vasant Vas Narasimhan refrained from confirming or denying reports of discussions with Dr. Reddy’s Laboratories. Narasimhan artfully navigated the conversation, expressing the company’s contemplation of finding a “better owner” for NIL, whether through partnership or outright sale.

Narasimhan underscored the strategic importance of India, acknowledging its pivotal role in talent acquisition and research endeavors. Despite a potential divestment from manufacturing operations, NHPL remains poised for expansion, with plans to increase its headcount by 10%.

Novartis’ intricate dance of ownership considerations reflects a broader trend in the pharmaceutical landscape, where companies seek to optimize their portfolios for growth and efficiency. The company’s valuation at $210 billion underscores the significance of its decision-making in the market.

As rumors swirl about a potential buyout deal with DRL, the industry awaits further developments. However, emails to both DRL and Novartis have gone unanswered, shrouding the situation in an air of mystery.

In this ever-evolving pharmaceutical landscape, Novartis’ strategic maneuvers in India exemplify the delicate balance between tradition and innovation, legacy and transformation. As the company charts its course forward, all eyes remain keenly fixed on the unfolding narrative of this pharmaceutical giant.