European pharmaceutical giants Novartis and GlaxoSmithKline have announced a three-part transaction worth more than $20 billion, according to a GSK news release.
GSK will acquire Novartis' global vaccine business, excluding influenza vaccines, for $5.25 billion and Novartis will acquire GSK's oncology unit for up to $16 billion, with $1.5 billion depending on the results of an ongoing trial.
The two companies will also create a Consumer Healthcare over-the-counter business joint venture, with GSK holding majority control, according to the news release. The joint venture would total approximately $10 billion in annual sales in four over the counter categories: wellness, oral health, nutrition and skin health, according to a Novartis news release.
"The Novartis OTC portfolio is highly complementary to GSK's and has many well-known, widely recommended brands such as Voltaren, Excedrin, Otrivin, and Theraflu. Together, we will create the world’s premier OTC business with clear opportunities to accelerate revenue growth," said GSK CEO Sir Andrew Witty in the GSK news release.
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