GlaxoSmithKline (GSK) and Novartis have completed a three-prong multibillion pound business transaction, the companies announced on 3 March 2015.
GSK has acquired Novartis’ global vaccines business — excluding influenza vaccines — for an initial payment of US$5.25bn; their consumer divisions have been merged, with GSK retaining majority control, and Novartis has bought the rights to GSK’s current and future oncology business for US$16bn.
GSK says it plans to use the proceeds from the deal to pay out £4bn to its shareholders.
“Completion of this transaction represents a major step forward in the group’s strategy to create a stronger and more balanced set of businesses across pharmaceuticals, consumer healthcare and vaccines,” says Sir Andrew Witty, GSK’s chief executive officer.
Novartis believes the acquisition of GSK’s oncology products and pipeline compounds will raise its profile in the targeted therapies field.
“The completion of the GSK transactions focuses Novartis, and further establishes our leading positions in key growing business segments,” the company’s chief executive officer Joseph Jimenez says.