Novartis bids for greater share of Indian subsidiary
Novartis is looking to buy an additional 39 per cent of its majority-owned subsidiary Novartis India for around 4.4bn rupees ($87m), or 351 rupees per share.
While the Swiss major has not provided a rationale for the offer, one factor could be the resurgence of the Indian vaccines sector under the Government’s national immunisation programme which, according to Datamonitor, is likely to drive 20 per cent growth of the $665m market.
Novartis India already has a significant share of the Indian vaccines market through its rabies vaccine manufacturing facility and joint venture deals with Panacea Biotech and Chiron Panacea Vaccines.
If successfully the offer, which is due to open in May, would leave Novartis with a 90 per cent stake in the Indian firm, just below the threshold needed to delist from the Mumbai exchange.