GSK to Buy Out Novartis's Stake in Health-Care Venture for $13 Billion -- Update
March 27 2018 - 2:17AM
Dow Jones News
By Nathan Allen
GlaxoSmithKline PLC agreed to pay Novartis AG $13 billion for
its 36.5% stake in their consumer health care joint venture, moving
to consolidate the unit just three years after it and Novartis
joined forces.
The deal is the first significant strategic move for both
companies' young and newly installed chief executives, as they
reposition their respective companies amid a series of other
reviews and deal making across the industry.
GSK Chief Executive Emma Wamsley, 48 years old, has moved to
shake up the company's drug-research efforts , reshuffling or
letting go hundreds of executives and scientists since taking over
about a year ago. That is part of an industry wide effort at
several big pharmaceutical firms to refocus attention and resources
on the high-risk, but high-reward business of discovering and
bringing to market new drugs.
Novartis Chief Executive Vasant Narasimhan, 41, on the job just
since February, has similarly said his main aim is to reinvigorate
the company's drug discovery pipeline.
Amid those efforts, both have also been considering how to
prune, or bolster, their businesses at the deal table. GSK was
among several companies kicking the tires at Pfizer Inc.'s large
consumer-goods business, but last week said it wouldn't bid.
Novartis, meanwhile, is considering a sale or spin off its Alcon
eye business, and Dr. Narasimhan has said he is also considering
options for its U.S. generics business.
(END) Dow Jones Newswires
March 27, 2018 03:02 ET (07:02 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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