Menu

Novartis and Glaxo Agree to Big Deal

The pharmaceutical companies announce a suite of asset swaps that drove up share prices and will reshape both.

Apr 22, 2014
Bob Grant

WIKIMEDIA, BRADLEY JSwiss pharmaceutical giant Novartis and British firm GlaxoSmithKline (GSK) traded more than $20 billion worth of assets today (April 22) in a series of deals that will overhaul both companies. Novartis will buy GSK’s oncology business for an estimated $16 billion, and GSK will purchase Novartis’s vaccine division for $7.1 billion. In addition, the two companies will combine forces on the direct-to-consumer ends of their businesses, with Novartis folding its over-the-counter pharmaceuticals in with GSK’s consumer product line.

“This is about getting us into fighting shape for the next 10 years,” Novartis’s chief executive Joseph Jimenez told The New York Times. Novartis is also selling its animal health division to Eli Lilly for more than $5 billion, according to The Guardian.

“Opportunities to build greater scale and combine high quality assets in vaccines and consumer healthcare are scarce,” GSK CEO Andrew Witty said in a statement. “With this transaction we will substantially strengthen two of our core businesses and create significant new options to increase value for shareholders."

Shares in both companies rose upon announcement of the deals on Tuesday: GSK added 5 percent, Novartis added 2 percent.

The announcement of Novartis’s and GSK’s extensive transactions comes during a busy year for such wheeling and dealing in the pharmaceutical sector. Earlier this year, Irish drug maker Mallinckrodt Pharmaceuticals bought Questcor Pharmaceuticals for $5.6 billion in cash and shares, and acquired Cadence Pharmaceuticals of San Diego for about $1.4 billion. And health-care company McKesson Corporation took over German pharmaceutical wholesaler Celesio for more than $5 billion.

January 2019

Cannabis on Board

Research suggests ill effects of cannabinoids in the womb

Marketplace

Sponsored Product Updates

FORMULATRIX® digital PCR technology to be acquired by QIAGEN
FORMULATRIX® digital PCR technology to be acquired by QIAGEN
FORMULATRIX has announced that their digital PCR assets, including the CONSTELLATION® series of instruments, is being acquired by QIAGEN N.V. (NYSE: QGEN, Frankfurt Stock Exchange: QIA) for up to $260 million ($125 million upfront payment and $135 million of milestones).  QIAGEN has announced plans for a global launch in 2020 of a new series of digital PCR platforms that utilize the advanced dPCR technology developed by FORMULATRIX combined with QIAGEN’s expertise in assay development and automation.
Application of CRISPR/Cas to the Generation of Genetically Engineered Mice
Application of CRISPR/Cas to the Generation of Genetically Engineered Mice
With this application note from Taconic, learn about the power that the CRISPR/Cas system has to revolutionize the field of custom mouse model generation!
Translational Models of Obesity, Dysmetabolism, Diabetes, and Complications
Translational Models of Obesity, Dysmetabolism, Diabetes, and Complications
This webinar, from Crown Bioscience, presents a unique continuum of translational dysmetabolic platforms that more closely mimic human disease. Learn about using next-generation rodent and spontaneously diabetic non-human primate models to accurately model human-relevant disease progression and complications related to obesity and diabetes here!
BiochemAR: an augmented reality app for easy visualization of virtual 3D molecular models
BiochemAR: an augmented reality app for easy visualization of virtual 3D molecular models
Have you played Pokemon Go? Then you've used Augmented Reality (AR) technology! AR technology holds substantial promise and potential for providing a low-cost, easy to use digital platform for the manipulation of virtual 3D objects, including 3D models of biological macromolecules.