Sign In
  • ENG

'GSK-Novartis global deal not to impact India business'

Written by Agencies |Published : April 23, 2014 7:41 PM IST

Novartis and GSKGlaxoSmithKline Consumer Healthcare today said the multi-billion dollar global deal between parent GlaxoSmithKline Plc and Swiss drug major Novartis won't affect its business in India. The two companies agreed to form a joint venture by combining Novartis' over-the-counter division with GSK's consumer business to create a business with USD 10 billion in annual sales. GSK will hold a 63.5 per cent stake in the venture.

'This consumer healthcare joint venture will exclude GlaxoSmithKline Consumer Healthcare Ltd India, where GSK plc will continue to hold directly its interests in the listed entity,' GlaxoSmithKline Consumer Healthcare (GSKCH) said in a filing to the BSE. As part of the three-way transaction announced today, the Swiss firm will buy GSK's cancer drugs portfolio for USD 16 billion and sell its vaccines business in return for USD 7.1 billion.

Novartis, based in Basel, will acquire GSK's oncology products for a USD 14.5 billion payment and up to USD 1.5 billion contingent on a development milestone. Novartis would have opt-in rights to GSK's current and future oncology R&D pipeline. Novartis will divest its vaccines business, excluding flu, for USD 7.1 billion plus royalties. The upfront payment is USD 5.25 billion and up to USD 1.8 billion is in milestones. Earlier this year, GSK increased its stake in the Indian arm, GlaxoSmithKline Consumer Healthcare, to 75 per cent following the completion of a Rs 6,400 crore open offer. GlaxoSmithKline Consumer Healthcare shares closed at Rs 4,368 on the BSE, up 0.06 per cent. (Read: 'Novartis win will have an adverse impact on the access to treatment')

Also Read

More News

Global pharma major Novartis will acquire GlaxoSmithKline plc's (GSK) cancer drugs portfolio for USD 16 billion and sell its vaccines business in return for USD 7.1 billion, apart from forming a joint venture for the consumer healthcare business in a three-part transaction. In separate statements, the two companies said they will combine Novartis' over-the-counter (OTC)) division with GSK's consumer business, creating a new world-leading consumer healthcare business with USD 10 billion in annual sales. UK-headquartered GSK will have majority control with an equity interest of 63.5 per cent in the venture. (Read: Novartis claims to have distributed free drugs worth Rs 7,500 cr)

Source: PTI

For more articles on diseases & conditions , visit our diseases & conditions section. Follow us on Facebook and Twitter for all the latest updates! For daily free health tips, sign up for our newsletter. And to join discussions on health topics of your choice, visit our forum.

Total Wellness is now just a click away.

Follow us on