Novartis Exits India Unit in $175M Sale to ChrysCapital

Novartis AG has agreed to sell its 70.68% controlling stake in its publicly listed India subsidiary Novartis India Limited to a group led by private equity firm ChrysCapital in a deal valued at approximately INR 14.6 billion ($175 million). The transaction marks ChrysCapital’s first acquisition of a controlling stake in the Indian pharmaceutical sector.

The sale triggers a mandatory open offer to public shareholders of Novartis India at INR 860.64 per share, giving the buyers the opportunity to acquire up to an additional 25% of the company. Following the announcement, Novartis India shares surged by the maximum daily limit of 20%.

The divestment comes as Novartis channels more investment toward the United States, where potential tariffs on imported patented drugs have become a board‑level supply‑chain risk. A proposal floated in September 2025 suggested a 100% tariff on patented medicines, making domestic US production far more valuable. Novartis has been weighing as many as 10 US manufacturing sites at a cost of roughly $23 billion over five years, alongside projects in North Carolina and California and a radioligand network in Florida. Other major pharmaceutical companies—including Pfizer, GSK, AstraZeneca, Johnson & Johnson, Eli Lilly, and Roche—have also announced plans for new US hubs.

Recent US–India trade signals have improved, with a rollback of an extra 25% tariff and talk of an interim deal as soon as March. However, drug‑specific tariff threats are still pushing manufacturers to localize production in the US, and once companies commit to plants and regulatory approvals, those footprints can remain in place for decades.