Dr Reddy’s Laboratories will discontinue the marketing and distribution of select Novartis brands in India from October 1, 2026, following the termination of its agreement with Novartis India.
The Hyderabad-based pharmaceutical company informed the stock exchanges that it had terminated the agreement covering the distribution and promotion of certain Novartis brands in India. However, Dr Reddy’s will continue to commercialise the affected brands until September 30, 2026.
Agreement Dates Back to 2022
Dr Reddy’s and Novartis India entered into an exclusive sales and distribution agreement in February 2022. The arrangement covered several established and off-patent brands, including Voveran (diclofenac), Methergine (methylergonovine) and products from Novartis’ calcium range.
The agreement enabled Dr Reddy’s to commercialise these established brands in the Indian market while Novartis continued to focus on its broader portfolio.
Change in Novartis India Ownership
The termination follows a change in the controlling shareholding of Novartis India. In February 2026, Novartis agreed to sell its 70.68% stake in its listed Indian subsidiary to a consortium led by ChrysCapital for ₹1,446 crore.
As per ET Pharma, the change in ownership has now resulted in the termination of the distribution arrangement between the two companies.
Transition to New Marketing Arrangements
Consequently, Dr Reddy’s will stop commercialising the covered brands after September 30. The development marks a shift in the way these established Novartis brands will be marketed in India following the change in ownership.
The companies are expected to manage the transition of the affected portfolio ahead of the October deadline, while ensuring continuity of availability for patients during the changeover.