Cipla Signs Licence Agreement with Novartis AG; Will Manufacture Type-2 Diabetes Medicine From 2026

From January 2026, Cipla Limited will be manufacturing Galvus and Galvus combination brands that are used in the treatment of type 2 diabetes. The drug maker signed a perpetual license arrangement. Cipla in an agreement with Switzerland-based Novartis Pharma AG, the company said in an exchange filing on Monday. Up to that point, the business would keep producing and selling goods under the Galvus name.

“This deal is expected to further bolster Cipla’s position in India as one of the top players in the diabetes category,” it added.

The fulfilment of certain prerequisite requirements is a requirement for the agreement.

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Galvus is a well-known brand in the oral diabetic treatment market and among the top brands in the Dipeptidyl Peptidase-4 (DPP4) market. With reported sales of Rs 268 crore, Galvus has the potential to considerably expand Cipla’s portfolio in the diabetes care continuum market. (IQVIA MAT February 2023).

This agreement is anticipated to strengthen Cipla’s standing as one of the leading companies in the diabetes market in India. The reflection of this was clearly seen in how shares on Cipla’s performance on Monday post the announcement. Shares of Cipla closed Monday’s trading session on the BSE 1.02% higher at Rs 901.85 a share.

The oral medication Galvus belongs to the Dipeptidyl Peptidase-4 (DPP4) class. Its reported sales of 268 crores are projected to strengthen Cipla’s position in the diabetic market, according to the statement. Decreasing prices are to be expected in the coming year.

The anti-diabetic medication Vildagliptin’s brand name and trademark rights for Vysov and Vysov M (Vildagliptin + Metformin) were purchased by Cipla in December 2019 for the Indian market. Under the trade names Vysov and Vysov M, the business had been co-marketing Vildagliptin in accordance with Novartis.

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