Novartis in $28.5bn+ mega-deal with GSK, Lilly

Novartis has announced a major upheaval of its business, which will transform its portfolio and also that of GlaxoSmithKline, and to a lesser extent, that of Lilly. Novartis is to divest its vaccines business to GSK, while GSK will transfer its oncology products to Novartis. The two companies will combine their over-the-counter and consumer healthcare businesses in a joint venture. Separately, Novartis is divesting its animal health business to Lilly.

Novartis's CEO Joe Jimenez has been talking for some time about the need to make a strategic plan for certain assets, including vaccines, and the package of transactions announced today will enable it in one fell swoop to focus fully on its three key businesses of pharmaceuticals, eye care