Novartis AG announced a major asset swap with GlaxoSmithKline plc as well as a agreement to sell its animal health unit to Eli Lilly & Co. on April 22. All told, the deals could be worth more than $30 billion.
Novartis will pay $14.5 billion for GSK’s oncology products unit plus as much as $1.5 billion more depending on the results of a trial of a melanoma drug. GSK in turn will pay Novartis $5.25 billion for its vaccines other than those against the flu in addition to as much as $1.8 billion in milestone payments and ongoing royalties. The companies will also create a consumer health care joint venture in which GSK will own 63.5 percent and Novartis will own 36.5 percent. GSK shareholders and regulators must approve the deals, which the companies hope to complete in the first half of 2015.
