GlaxoSmithKline, Novartis, Eli Lilly Trade Assets in Industry Shakeup

Tuesday, 22 Apr 2014 01:52 PM

By Nick Sanchez

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Swiss pharmaceutical giant Novartis announced a major overhaul of its portfolio Tuesday, including asset swaps with Britain's GlaxoSmithKline and the U.S.'s Eli Lilly and Co.

The deals are worth a total of approximately $25 billion.

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

"The transactions mark a transformational moment for Novartis," Novartis CEO Joseph Jimenez said in a statement, according to Fox Business. "Looking ahead, this positions Novartis well for future healthcare industry dynamics."

The drug giants stand to benefit from the deals that aim to help each exit sectors in which they're less efficient and enter sectors where they are. Competition from generic drugs as well as healthcare spending cuts are likely the primary driving factors behind the deals.

"Novartis has agreed an elegant set of transactions that either removes or strengthens its underperforming assets, whilst boosting its oncology portfolio," one Jefferies analyst said, according to Reuters.

Specifically, Novartis will buy GSK's oncology products for $14.5 billion plus $1.5 billion pending the outcome of a melanoma trial.

It will sell GSK its vaccines business for $7.1 billion, including royalties. Currently, GSK supplies more than 2 million shots a day. The flu vaccine was not part of the package, and Novartis said it will create a new offer for that business separately.

Lastly, it's selling its animal health business to Eli Lilly for $5.4 billion.

Steve Brozak, president of WBB Securities, told The Associated Press that all the deals will close simultaneously.

"We’re seeing the logical extension of behavior that has taken place not over just the last few years, but in the past decade," he said. 

Urgent: Assess Your Heart Attack Risk in Minutes. Click Here.

Related Stories:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Send me more news as it happens.
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Crooks Steal From 5-Year-Old Cancer Patient; TVs, Video Games, PS4 Gone

Thursday, 18 Dec 2014 15:40 PM

Police are on the hunt for the crooks who stole electronics from a 5-year-old brain cancer patient's St. Louis home. . . .

Lost Luggage Found 20 Years Later Returned to Arizona Woman

Thursday, 18 Dec 2014 15:16 PM

Lost luggage found 20 years later was returned to an Arizona woman with a handwritten note on Tuesday. . . .

Bus Driver Takes Cane From Blind Boy, Replaces It With Pool Noodle

Thursday, 18 Dec 2014 15:07 PM

A Kansas City school bus driver took away an 8-year-old blind boy's cane this week and replaced it with a pool noodle, o . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved