Pharma giants sign healthcare deal
23 Apr 2014
A multi-billion pound three-part transaction has been agreed between GlaxoSmithKline and Novartis.
GlaxoSmithKline (GSK) and Novartis yesterday announced a major three-part deal involving the firms’ consumer healthcare, vaccines and oncology businesses.
Under terms of the inter-conditional agreement, GSK and Novartis will create a new consumer healthcare business, with GSK assuming majority control through an equity interest of 63.5%.
“We will expand our portfolio to both help treat illness and prevent disease
GSK CEO Sir Andrew Witty
A statement on GSK’s website also announced the pharmaceuticals firm will be acquiring Novartis’ global Vaccines business (excluding influenza vaccines) “for an initial cash consideration of $5.25 billion with subsequent potential milestone payments of up to $1.8 billion and ongoing royalties”.
As part of the deal, Novartis is set to receive GSK’s oncology portfolio, related R&D activities and rights to its AKT inhibitor and also grant of commercialisation partner rights for future oncology products to Novartis for a fee of $16 billion (£9.5bn).
GSK chief executive officer Sir Andrew Witty said: “Opportunities to build greater scale and combine high quality assets in Vaccines and Consumer Healthcare are scarce. With this transaction we will substantially strengthen two of our core businesses.
“We will expand our portfolio to both help treat illness and prevent disease, and we will broaden our scope to improve human health with the acquired R&D and innovation expertise.”
A spokesman for GSK told LaboratoryTalk: “No UK manufacturing sites for GSK or Novartis are in the scope of this agreement so there will be no changing of hands in that respect.
“Novartis does have a site in Liverpool, but this manufacturers flu vaccines which, as you know, is outside the scope of the agreement.”
