Big changes at Novartis include GSK asset swap
Swiss drugmaker Novartis has announced a significant shake-up including promoting its pet drugs department and trading resources with Britain’s GlaxoSmithKline.
Novartis said it had been simplifying its business and increasing its emphasis on anti-cancer medications, which generate higher-profit.
The change is partially in response to cut-backs on health spending by cash-strapped governments.
Novartis said it’d decided to purchase GlaxoSmithKline’s oncology products for $14.5 billion (10.4 billion pounds), while promoting to GSK its vaccines, eliminating virus, for $7.1 billion (5.14 billion pounds) plus royalties and developing a partnership with GSK in consumer health.
GSK chef Andrew Witty said the company didn’t have sufficient size to participate in cancer drugs, therefore it made sense to place them into “the arms of someone who is really a world leader in oncology”.
Novartis has decided to offer its animal health supply to Eli Lilly for around $5.4 billion (3.9 billion pounds).
This is actually the latest in a flurry of deals among international drugs companies – including Pfizer’s noted fascination with AstraZeneca.
Based on one newspaper report AstraZeneca has rejected a $101 billion (73 billion euro) bid approach from Pfizer – a tale that sent stocks over the industry racing.
While generic companies and smaller specialty search for higher size, many big organizations would like to concentrate on the few major companies.