Novartis announces billions of dollars in deals with GSK, Eli Lilly

|About: Novartis AG (NVS)|By:, SA News Editor

Novartis (NVS) has agreed to exchange certain assets with GlaxoSmithKline (GSK) and it is selling its animal-health division to Eli Lilly (LLY) for around $5.4B.

Novartis will buy GSK's oncology products for an initial $14.5B and up to $1.5B in development milestones. The Swiss company will also sell its vaccines business to its U.K. rival for $5.25B upfront and as much as $1.8B in milestones, as well as royalties. The latter deal doesn't include Novartis' flu business, which the company plans to sell separately.

Novartis will also combine its over-the-counter operations with GSK Consumer Healthcare in a joint venture in which Novartis will own 36.5%.

Eli Lilly will fold Novartis' animal-health unit into its Elanco business, creating the second-largest company in the sector in terms of global revenue.

Novartis PR, Eli Lilly PR