Novartis Makes $27B+ Worth of Deals with GSK, Lilly
Novartis launched the long-awaited business restructuring, with several multibillion-dollar deals with GlaxoSmithKline and Eli Lilly & Co.
The deals include:
• Novartis will buy GSK’s Oncology business for $14.5 billion upfront, plus up to $1.5 billion pending
• Novartis will sell its Vaccine business, excluding the flu portion, to GSK for $7.1B, plus royalties.
• Novartis will sell its Animal Health business to Eli Lilly for roughly $5.4B.
• Additionally, GSK and Novartis are creating a new Consumer Health Care business through a joint venture that will combine Novartis’ over-the-counter drug business with GSK’s consumer business. Novartis will own 36.5% of the new "GSK Consumer Healthcare" venture, leaving GSK with 63.5% and managerial control.
Teva Pharmaceuticals CEO Erez Vigodman revealed Teva's plan to get its "house in order" -- a plan that involved closing or divesting 11 plants while evaluating the fate of an additional 16 plants.
After months of speculation, Merck sells its consumer care business to Bayer for $14.2 billion. The transaction, which includes leading brands such as Claritin, Coppertone and Dr. Scholl’s, elevates Bayer as the OTC leader in North America and Latin America.
The board of AstraZeneca rejected the improved $119 billion takeover offer from U.S. drugmaker Pfizer, which would have created the world’s largest drug company, as well as lowered NY-based Pfizer's tax rates by moving its official headquarters to London. According to Pfizer CFO Frank D’Amelio, the deal broke down over price.
As a a first step in the company's "Reallocating Resources to Drive Growth" plan, Amgen announced it would close all of its research and manufacturing sites in Washington and Colorado, as well as eliminate 2,900 jobs. 1,100 jobs were added to the lay off count in October, bringing the total up to 20 percent.