GSK to sell oncology arm to Novartis

British pharmaceutical giant GlaxoSmithKline is to sell its oncology business to Novartis and buy the Swiss company's vaccines division.

Drug maker Novartis says it has signed several multi-billion-dollar deals with GlaxoSmithKline and Lilly that will affect some 15,000 of its employees.

The Basel, Switzerland-based company said on Tuesday it will buy GSK's oncology products business for $US14.5 billion ($A15.6 billion), plus up to $US1.5 billion ($A1.61 billion) more if certain milestones are met.

It will also divest its vaccines business to GSK, excluding its flu business, for $US7.1 billion ($A7.64 billion), plus royalties. The two companies are also creating a new consumer health care business through a joint venture.

Separately, Novartis said it will sell off its animal health division to Lilly for about $US5.4 billion ($A5.81 billion) and plans to sell its flu business.

Novartis CEO Joseph Jimenez told reporters the transactions will raise profits and "affect 15,000 Novartis employees," but didn't specify in which way.


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Source: AAP


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