The deal, worth billions, will also see Novartis sell its vaccines unit to Glaxo and partner with Glaxo on their consumer divisions. Novartis also said it will sell its animal health division to Eli Lily.
The Wall Street Journal: Novartis Buys GlaxoSmithKline's Oncology Unit For $14.5 Billion
Basel-based Novartis said it is acquiring the oncology unit of Britain's GlaxoSmithKline for around $14.5 billion. The Swiss pharmaceutical giant is also selling its vaccines unit to Glaxo for $5.25 billion. Both deals include provisions for milestone payments that could raise the total values. Novartis and Glaxo are also planning to combine their consumer divisions, which sell medicines that don't require a prescription (Falconi and Plumridge, 4/22).
Bloomberg/Los Angeles Times: Novarits To Buy GlaxoSmithKline Cancer Unit For Up To $16 Billion
Novartis AG agreed to buy GlaxoSmithKline Plc’s cancer-drug business for as much as $16 billion, form a consumer-health venture with Glaxo and sell its animal-health operation to Eli Lilly & Co. for $5.4 billion in an overhaul of the Swiss drugmaker. Novartis also will sell its vaccines business, excluding the flu operations, to Glaxo for $7.1 billion, the Basel, Switzerland-based company said in a statement today. That includes royalties and as much as $1.8 billion payments based on the achievement of certain business goals (4/21).
USA Today: Glaxo, Novartis, Eli Lilly In ‘Major 3-Part’ Deal
British drug giant GlaxoSmithKline announced Tuesday that it will sell its cancer-products business to pharmaceutical giant Novartis, in a deal that will see the firm's Swiss rival pay $14.5 billion for its oncology unit. Basel-headquartered Novartis said separately that it will sell its animal health division to U.S. firm Eli Lilly for $5.4 billion (Hjelmgaard, 4/22).
The Wall Street Journal: Novartis, GlaxoSmithKline Consumer-Health Business Unites Big Brands
The new over-the-counter drug and food-supplement business, with sales of around $11 billion, will be called GSK Consumer Healthcare. As the name suggests, Glaxo will control the business, with a 63.5 percent stake and seven of 11 board directors. Glaxo Chief Executive Andrew Witty will chair its board (Plumridge, 4/22).