Novartis India Ltd reply to clarification sought by the exchange

Novartis India Ltd reply to clarification sought by the exchange

The Exchange had sought clarification from Novartis India Ltd with respect to news article appearing in The Economic Times on December 24, 2014 titled "CCI gives approval for Novartis-GSK Pharma Deal"

Novartis India Ltd replied stating "Novartis AG and GSK plc have agreed to create a consumer healthcare business through a global joint venture between the OTC division of Novartis and the consumer healthcare division of GSK. The global transaction is subject to various closing conditions including obtaining anti-trust approvals. Novartis India Limited had informed BSE Limited of this by its disclosure dated 22 May 2014.

Accordingly, both Novartis AG and GSK plc had sought the approval of the Competition Commission of India for the global consumer healthcare joint venture between Novartis and GSK along with approval for the divestment of Novartis Vaccines business to GSK and the acquisition by Novartis of GSKs Oncology business. Please note that only the OTC division is housed within Novartis India Limited. The Commission approved the transactions mentioned above by way of its order published on 23 December 2014.

The combination of the OTC division of Novartis with the consumer healthcare division of GSK has, however, not yet been considered by the board of directors of Novartis India Limited and the company is yet to enter into definitive agreements with GSK in this regard. Such agreements when entered into will be subject to all necessary regulatory approvals. Novartis India Limited will make appropriate disclosures to the stock exchange in accordance with the companys obligations under the listing agreement as and when its board considers the transaction."