GSK and Novartis complete deals to reshape drugmakers

GlaxoSmithKline and Novartis said they had completed a series of asset swaps worth more than $20bn that will reshape both drugmakers.
Sir Andrew Witty, chief executive of GSKSir Andrew Witty, chief executive of GSK
Sir Andrew Witty, chief executive of GSK

GSK is forming a consumer health joint venture with Novartis, while at the same time buying the Swiss company’s vaccines business and divesting its cancer drugs portfolio to Novartis.

The two companies originally announced the transaction in April 2014 to bolster their best businesses and exit weaker ones as the drugs industry contends with healthcare spending cuts and increased generic competition.

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GSK, which plans to return £4bn to shareholders following completion of the transactions, said it would provide an in-depth view of its prospects at an investor meeting to be held when it reports first-quarter results on May 6.