The acquisition of GlaxoSmithKline PLC’s portfolio of marketed oncology products by Novartis AG for $16 billion might be considered on the high side for half a dozen products with total sales of around $1.6 billion. But the Swiss company believes three of the products could be blockbusters in its hands, emphasizing the advantages of having a longstanding marketing focus on cancer drugs.
The purchase was part of a series of transactions announced April 22 that will see Novartis divesting its vaccines business to GSK (excluding flu vaccines) and forming an OTC-consumer joint venture with the U.K.-based multinational. Novartis also sold its animal health business to Eli Lilly & Co
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