Novartis is set to divest its Indian eye care portfolio to JB Chemicals, joining the trend of multinational corporations reducing their exposure to the Indian market. This strategic move aligns with Novartis’ focus on capitalizing on ophthalmic therapy, providing JB Chemicals entry into a thriving business segment. The anticipated deal, expected to be valued at around INR 1000 crore, reflects a broader trend among global Big Pharma companies divesting their branded generic portfolios to domestic entities.
In recent months, major pharmaceutical players have been streamlining their portfolios by selling key assets and divesting from certain markets. Concurrently, large Indian pharmaceutical companies are intensifying their focus on the Indian market as a strategic diversification from the challenging US generics market marked by significant price erosion. This shift has led to multiple deals where Indian companies have acquired high-growth brands from both multinational corporations and local sellers at attractive valuations.
Sources indicate that Novartis’ existing eye care portfolio in India is estimated to be around INR 400-500 crore, inclusive of certain brands transferred from eyecare giant Alcon during its spin-off from Novartis. In 2019, as part of a global restructuring initiative, Novartis separated Alcon into a standalone business to concentrate on its core pharmaceuticals area. Alcon is recognized as a global leader in eyecare, addressing issues such as cataracts, glaucoma, retinal diseases, and refractive errors.
Both Novartis India and JB Chem stocks have experienced an uptick in recent days. On December 7, JB Chem reportedly reached a new 52-week high at INR 1555, while Novartis India stock closed at INR 706 on the same day.
