Novartis India to lay off 400 employees

NIL is signing a sales & distribution agreement with Dr Reddy’s Laboratories


Now that Novartis India (NIL) has entered into a sales and distribution agreement with Dr Reddy’s Laboratories for a select range of medicines, it has found that certain roles have been rendered redundant, or exist in surplus. That means, about 400 of NIL employees will be laid off.

Novartis India, which is the Indian arm of the Switzerland-based healthcare company, Novartis, will end up spending about Rs 75 crore in costs and ex-gratia compensation under the employee separation scheme (ESS). In addition to the severance package, the Company will also help the affected employees with outplacement services.

As per the exclusive sales and distribution agreement with Dr Reddy’s, some of Novartis’ established range of medicines, including Voveran and Methergine, which form the Established Medicine Division (EMO) and are responsible for about 50 per cent of its 2020-2021 product sales, will now be exclusively promoted and distributed by Dr Reddy’s in the country.

With this arrangement, Dr Reddy’s hopes to access and reach out to more patients, now that its portfolio will be strengthened in areas of pain management and women’s health.

Novartis India has a workforce strength of over 10,000 employees. It has taken on over 1,600 people in the country over the last two years. It has spent more than $300 million towards it R&D support centrs and services in the country. The multinational drug manufacturer is also setting up an new manufacturing plant at Kalwe, which will focus on making oral cancer medicines.


  1. Expertise of Novartis management to exploit its employees.. employees have given decades of their life to build this company, what NOVARTIS is returning back to them is illegal termination…

  2. Novartis illegal and brutal termination of 400 Employees on 11th February 2022, is injustice to mankind. Shame to this organization.

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