Dr. Reddy’s Laboratories has announced the termination of its distribution and promotion agreement with Novartis India Limited (NIL) for select brands in India, effective September 30, 2026. This decision follows a change in NIL’s controlling shareholding. Dr. Reddy’s will continue to commercialize the affected brands until the termination date.
Distribution Agreement Termination
Dr. Reddy’s Laboratories Ltd. has officially terminated its agreement with Novartis India Limited (NIL) concerning the distribution and promotion of specific brands within India. The agreement, originally dated February 11, 2022, will conclude with the company continuing to commercialize the covered brands up to September 30, 2026.
Reason for Termination
The company cited a recent change in the controlling shareholding of NIL as the primary reason for this termination. This strategic adjustment impacts the ongoing partnership between the two pharmaceutical entities.
Continued Commercialization
Despite the termination of the distribution and promotion agreement, Dr. Reddy’s Laboratories has confirmed that it will maintain the commercialization of the brands affected by this decision until the agreed-upon termination date of September 30, 2026. This ensures a smooth transition and continued market presence for the portfolio.
Source: BSE
