Under a “major three-part transaction” with Novartis, GSK will own also 63.5% of a newly-created consumer healthcare business with annual revenue of around $10.9 bn (Rs 66,490 crore).
In a separate statement, US pharma giant Eli Lilly said it had reached an agreement to acquire the Novartis animal health division for $5.4 billion (Rs 32,940 crore).
“The transactions mark a transformative process for us,” said Novartis CEO Joe Jimenez. “They also improve our financial strength, and are expected to add to our growth rates and margins.”
“We reckon the real value of the deal should be searched for in the pipeline and the newly launched products, strengthening Novartis’ position in melanoma and haematology,” Vontobel analyst Andrew Weiss said of the cancer deal with GSK.
The global pharma sector has seen a flurry of deals recently. Pfizer reportedly made a $101-billion offer for AstraZeneca. Canada’s Valeant Pharma International said on Tuesday it has offered to buy Botox maker Allergan for roughly $47 billion.
(With inputs from Reuters and AFP)