Novartis India Limited has completed its transition under new ownership by appointing Dr. Vikas Gupta as Managing Director and Chief Executive Officer and Bhagwat Singh Deora as Chief Financial Officer, effective July 29, 2026. The Board of Directors also approved critical commercial agreements with Novartis AG, including a royalty-free license for the Tegrital trademark and a five-year distribution agreement for pharmaceutical products, ensuring operational continuity after the ChrysCapital consortium acquired 70.68% of the equity share capital.

The appointments were made during the company’s 247th Board meeting held on July 29, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Dr. Gupta, who initially joined as Additional Director and CEO, was immediately redesignated as Managing Director and CEO, subject to shareholder approval. Mr. Deora, a Chartered Accountant with over 20 years of experience in the pharmaceutical sector, joins from JB Pharma. These leadership changes follow the resignation of six outgoing directors, including former Chairperson Christopher David Snook and CFO Shilpa Shashank Joshi, as part of the governance restructuring triggered by the change in control.

Strategic Agreements and Brand Continuity

To secure its product portfolio post-acquisition, Novartis India executed three key agreements with Novartis entities on July 29, 2026. The most significant is the Tegrital Brand License Deed, which grants the company an exclusive, irrevocable, royalty-free, and non-assignable license to use the 'Tegrital' trademark in India. Under this deed, Novartis AG must automatically assign the trademark to the company at no additional cost, provided there is no material breach by the company. This ensures uninterrupted manufacturing, marketing, and sales of the Tegrital range of pharmaceutical products.

Additionally, the company signed a Distribution Agreement with Novartis Pharma Services AG, appointing it as the exclusive distributor to import and sell certain pharmaceutical products in India. This agreement has an initial term of five years, extendable by another five years subject to mutual consent. Supply prices are fixed for the first year, with subsequent pricing determined by a mechanism outlined in the contract. A separate Trademark Assignment and License Deed transferred ownership of other key brands, including Voveran, Macalvit, and Citromacalvit, to the company on a royalty-free basis.

Leadership and Committee Reconstitution

The new management team includes several senior appointments aimed at stabilizing operations and driving growth. Besides Dr. Gupta and Mr. Deora, the company appointed Jason D'Souza as President – M&A, Business Development & Investor Relations; Rahul Vijayvargiya as Chief Human Resource Officer; Masud Shaikh as Chief Supply Chain Officer; and Sumeet Rajput as President – Business Operations. All appointments took effect on July 29, 2026.

The Board also reconstituted its Risk Management Committee and Stakeholders Relationship Committee to align with the new director lineup. Shashank Sinha chairs the Risk Management Committee, while Ashok Bhatia leads the Stakeholders Relationship Committee. The company has adopted a new corporate email domain (nilpharma.co.in) and website to reflect its rebranding under the new management.

What the Numbers Show

The acquisition of 17,450,680 equity shares by the ChrysCapital consortium (WaveRise Investments Limited and ChrysCapital Fund X) solidifies their control with a 70.68% stake, reducing Novartis AG’s holding below the 10% threshold required for promoter classification. The execution of royalty-free brand licenses and long-term distribution agreements mitigates immediate revenue risks associated with the ownership transition, allowing the new management to focus on operational integration rather than renegotiating core supply chains. The appointment of experienced executives from major Indian pharmaceutical firms signals a strategy to leverage domestic market expertise for future growth.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE234A01025/d3c98de0-0d4d-488a-9ac5-31a79e4ea3a5.pdf

Novartis reported net sales of $14.4 billion for the second quarter of 2026, an increase of 1% in constant currencies, driven by strong momentum from key growth brands including Kisqali, Kesimpta, Scemblix and Pluvicto. Core operating income remained flat at $5.9 billion, while net income declined 19% to $3.3 billion, impacted by higher income taxes and interest expenses. The company reaffirmed its full-year 2026 guidance, expecting net sales to grow by a low single-digit percentage and core operating income to decline by a low single-digit percentage.

Core earnings per share (EPS) was $2.41, beating the analyst consensus estimate of $2.13 by 13.15%. This represents a 0.41% decrease over earnings of $2.42 per share from the same period last year. Quarterly sales of $14.408 billion beat the analyst consensus estimate of $14.042 billion by 2.61%, a 2.52% increase over sales of $14.054 billion in the same period last year.

Financial Performance

Net sales for the quarter grew 3% in reported terms to $14.4 billion, with volume growth contributing 18 percentage points, offset by a 14 percentage point negative impact from generic competition. Pricing negatively impacted sales by 3 percentage points, while currency effects added 2 percentage points. Operating income decreased 3% in constant currencies to $4.8 billion, primarily due to lower gross profit, partly offset by lower SG&A expenses. Core operating income margin was 41.2%, a decrease of 70 basis points in constant currencies.

Net income for the quarter was $3.3 billion, down 19% in constant currencies and reported terms. Core net income decreased 4% in constant currencies to $4.6 billion. Free cash flow for the quarter was $5.6 billion, a decrease of 12% in reported terms, due to lower net cash flows from operating activities.

For the first half of 2026, net sales were $27.5 billion, down 2% in constant currencies. Core operating income for the period was $10.8 billion, a decrease of 7% in constant currencies. Net income for the first half was $6.4 billion, down 17% in constant currencies.

Brand Performance

Sales growth was driven by priority brands, with Kisqali increasing 43% in constant currencies to $1.7 billion and Kesimpta rising 32% to $1.4 billion. Scemblix grew 89% to $562 million, and Pluvicto increased 43% to $651 million. Cosentyx sales grew 10% in constant currencies to $1.8 billion, while Leqvio surged 59% to $480 million. Fabhalta sales increased 88% to $225 million.

Pipeline and Strategic Updates

Novartis advanced its pipeline with several key milestones in the second quarter. Rhapsido received approval from the European Commission and Japan’s MHLW for chronic spontaneous urticaria. Itvisma was approved by the European Commission as the only gene replacement therapy for a broad spinal muscular atrophy patient population. The FDA granted pediatric exclusivity to Kisqali, adding a six-month period of exclusivity to existing patents. A Biologics License Application was submitted to the FDA for accelerated approval of del-zota in Duchenne muscular dystrophy.

Capital Allocation and Outlook

During the first half of 2026, Novartis repurchased 18.2 million shares for $2.8 billion. Net debt increased to $39.4 billion at June 30, 2026, compared to $21.9 billion at December 31, 2025, driven by mergers and acquisitions, dividend payments and share repurchases. The company maintained its long-term credit ratings of Aa3 with Moody’s and AA- with S&P.

Novartis reaffirmed its full-year 2026 guidance, expecting net sales to grow by a low single-digit percentage and core operating income to decline by a low single-digit percentage in constant currencies. If mid-July exchange rates prevail, the foreign exchange impact for the year is expected to be positive 1 percentage point on both net sales and core operating income.