Shares of Novartis India and Dr Reddy’s Laboratories hit fresh 52-week highs after reports surfaced suggesting that Dr Reddy’s plans to acquire Switzerland-based pharma company Novartis AG’s stake in Novartis India. 

Novartis India’s shares closed 15.44% higher at Rs 1,195.35 after hitting an almost 25-year high mark during Monday’s session. At the same time, Dr Reddy’s shares closed 1.66% higher at Rs 6,421.95. 

After due deliberations, Novartis India announced on February 16 that its board of directors agreed to support its parent company, Novartis AG, in evaluating its strategic options. 

The review also included an assessment of Novartis AG’s 70.68% shareholding in the company. No decision has yet been made regarding the eventual outcome.

Further, a media report claimed that Dr Reddy’s Labs has indicated interest in acquiring Novartis India’s domestic-focused portfolio and may offer a controlling premium in the targeted business. 

Dr Reddy’s is also likely in a race to acquire Novartis AG’s stake in the company. However, neither company has commented on market speculations regarding the matter yet.