Cipla signs licence agreement with Novartis AG to manufacture and market Type-2 Diabetes medicine | 12 April, 2023

Drugmaker Cipla on Monday said that it has signed a perpetual license agreement with Switzerland-based Novartis Pharma AG to manufacture and market Galvus and Galvus combination brands which are used in the treatment of type 2 diabetes from January 1, 2026.

The medicine is expected to contribute significantly to Cipla’s portfolio in the diabetes care continuum space with the drug’s reported sale of Rs 268 cr, as per IQVIA MAT February 2023. Explaining the deal further, Cipla informed that the agreement is subject to satisfaction of certain conditions precedent. The company will however continue to market and distribute Galvus branded products.

In the oral diabetic medication category, Galvus stands as one of the leading brands in the Dipeptidyl Peptidase-4 (DPP4) space and amongst the prominent brands. Through the deal, Cipla expects to further bolster its position in India as one of the top players in the diabetes category.

In January, Cipla had launched Cippoint, a point-of-care device for non-communicable and infectious diseases. Later, in February the company went through I-T Department search at some of its offices and manufacturing units. At that time, Cipla had informed that it is fully co-operating with the officials during the proceedings and had responded to the clarifications and details sought by the I-T Department. The business operations of co continued as usual and were not impacted due to the search, Cipla had informed during that time.

Cipla, in its Q3 results had reported a 10 percent jump in net profit which was at Rs 801 cr vs Rs 728.6 cr, the same quarter last year. The revenue had seen a rise of 6 percent on yearly basis at Rs 5,810 cr vs Rs 5,478.8 cr.

(Source: CNBC)