Dr Reddy's Laboratories has terminated its distribution and promotion agreement with Novartis India Ltd. following a change in the controlling shareholding of Novartis India.

Dr Reddy's Laboratories, headquartered in Hyderabad, is one of India's largest pharmaceutical companies with a global presence in generic drugs and active pharmaceutical ingredients. Novartis India Ltd. is the Indian subsidiary of Novartis AG, the Swiss multinational pharmaceutical corporation headquartered in Basel. Distribution and promotion agreements of this kind are a established feature of the Indian pharmaceutical market, allowing global drugmakers to leverage domestic companies' last-mile reach while enabling Indian firms to broaden their therapeutic portfolios without developing products in-house.

The termination comes after Novartis India experienced a change in its controlling shareholding, which triggered the end of the distribution and promotion arrangement between the two companies. The agreement had enabled Dr Reddy's to distribute and promote certain Novartis brands within the Indian market.

Dr Reddy's will continue commercialising the brands covered under the agreement until September 30, 2026, providing a transition period during which the company will wind down its distribution and promotion responsibilities. The extended runway—spanning roughly two years—reflects the practical need to maintain continuity of supply for patients and healthcare providers while the parties untangle commercial, regulatory, and logistical arrangements tied to the affected brands.

The development marks a shift in a partnership that contributed to Dr Reddy's branded portfolio in India, and attention now turns to how Novartis India's new ownership structure will handle the distribution of these brands going forward and whether Dr Reddy's will seek alternative arrangements to fill the resulting portfolio gap.

The source article can be found at CNBC-TV18.