Evonile Pharma capitalises Rs 1,290 crore cardiology IP

Evonile Pharma Limited (formerly known as Novartis India Limited) capitalised Rs 1,290 crore of Pfizer cardiology trademarks and related Indian intellectual-property rights in the September 2026 quarter, while paying Rs 10 crore upfront for exclusive promotion and distribution rights to two retina products in India. The additions mark entry into ophthalmology alongside a large intangible-asset acquisition.

What cardiology assets did Evonile Pharma acquire from Pfizer?

Evonile Pharma acquired India-registered trademarks related to a cardiology brand and certain related intellectual-property rights from Pfizer Inc., USA and Pfizer Products Inc., USA. Evonile Pharma executed the asset purchase agreement and trademark assignment deeds on September 7, 2026, and capitalised Rs 1,290 crore as intangible assets, including Rs 40 crore of stamp duty.

The transaction materially changed Evonile Pharma's balance sheet between March 31, 2026 and September 30, 2026. Intangible assets were Rs 1,304.26 crore at September 30, while the March 31 balance sheet did not report an intangible-assets balance. Total non-current assets rose to Rs 1,752.73 crore from Rs 210.02 crore over the same period, with the cardiology acquisition the principal disclosed addition.

Evonile Pharma spent Rs 1,313.24 crore on property, plant and equipment and intangible assets, including capital advances, in the half year ended September 30, 2026. That outflow was substantially larger than the nil amount reported in the corresponding half year ended September 30, 2025. The filing does not separately allocate the Rs 1,313.24 crore between the Pfizer acquisition and other capital expenditure.

How is Evonile Pharma entering ophthalmology?

Evonile Pharma entered ophthalmology through an agreement for exclusive Indian promotion and distribution rights to two retina products. The Exclusive Promotion and Distribution Agreement with Novartis Healthcare Private Limited, dated September 8, 2026, carried an upfront consideration of Rs 10 crore and, according to Evonile Pharma, marks its entry into the ophthalmology therapy area.

The arrangement grants Evonile Pharma promotion and distribution rights rather than ownership of the products or their trademarks. The September 30, 2026 filing does not name the two retina products or disclose the agreement duration, sales terms, minimum purchase commitments, revenue expectations or payments beyond the Rs 10 crore upfront consideration.

The ophthalmology agreement followed the July 29, 2026 change in control, when Novartis AG transferred 1,74,50,680 shares, representing 70.68% of Evonile Pharma's equity share capital, to WaveRise Investments Limited, ChrysCapital Fund X and Two Infinity Partners. Shareholders approved the name change to Evonile Pharma on September 24, 2026, and the Ministry of Corporate Affairs issued a fresh certificate of incorporation on October 1, 2026.

How did the acquisitions affect Evonile Pharma's finances?

Evonile Pharma's total assets increased by Rs 1,299.39 crore from March 31, 2026 to September 30, 2026, reaching Rs 2,277.66 crore. Total liabilities increased to Rs 1,505.94 crore from Rs 160.44 crore, while total equity declined to Rs 771.72 crore from Rs 817.83 crore. The newly recognised intangible assets accounted for most of the asset increase.

Evonile Pharma reported borrowings of Rs 796.01 crore at September 30, 2026, comprising Rs 283.51 crore of non-current borrowings and Rs 512.50 crore of current borrowings. The March 31, 2026 balance sheet did not report borrowings in either category. The half-year cash-flow statement recorded Rs 800 crore of net proceeds from long-term borrowings, compared with no such proceeds in the corresponding 2025 period.

Evonile Pharma's cash and cash equivalents increased to Rs 248.24 crore at September 30, 2026 from Rs 52.50 crore at the start of the financial year. Net operating cash flow was Rs 138.19 crore in the half year, compared with Rs 11.98 crore a year earlier, while investing activities used Rs 736.89 crore against an inflow of Rs 25.70 crore in the prior-year period. Financing activities generated Rs 794.44 crore, compared with an outflow of Rs 62.95 crore.

What else changed in Evonile Pharma's September quarter?

Evonile Pharma reported revenue from operations of Rs 56.05 crore for the quarter ended September 30, 2026, down from Rs 90.33 crore a year earlier and Rs 103.81 crore in the preceding June quarter. Evonile Pharma's half-year revenue was Rs 159.86 crore, compared with Rs 177.88 crore in the half year ended September 30, 2025.

Evonile Pharma reported a net loss of Rs 77.54 crore for the September 2026 quarter, against a profit of Rs 24.22 crore a year earlier. Evonile Pharma said the quarterly loss arose primarily from lower sales and certain non-recurring expenses. Exceptional items totalled Rs 68.26 crore, including Rs 61 crore for the termination and related inventory-purchase arrangements with one major customer and Rs 7.26 crore for invalidated import licences.

Evonile Pharma also recorded Rs 15.42 crore of one-time transition and acquisition expenses in other expenses during the September quarter. Evonile Pharma entered a termination agreement with one major customer on August 7, 2026, ending exclusive sales and distribution of Established Medicine Brands effective September 30, 2026. Evonile Pharma reports one operating segment, Pharmaceutical Business, and generates operating revenue in India.

Conclusion

Evonile Pharma's September 2026 filing shows a portfolio shift through two mechanisms: ownership of cardiology-related Indian trademarks and related rights acquired from Pfizer, and exclusive promotion and distribution rights for two retina products from Novartis Healthcare Private Limited. The Rs 1,290 crore capitalised cardiology asset drove the increase in intangible assets and contributed to a larger balance sheet funded in part by Rs 800 crore of net long-term borrowing proceeds.

The next disclosed event is the proposed rights issue. On October 8, 2026, Evonile Pharma's board approved a rights issue of partly paid-up equity shares of up to Rs 900 crore, and Evonile Pharma received Securities and Exchange Board of India approval on October 30, 2026. The issue price, entitlement ratio, record date and schedule had not been determined in the filing.