Novartis, GSK to create joint venture

Hand Shake

Two of the world's largest pharmaceutical companies have joined forces to create a joint venture, with GlaxoSmithKline (GSK) and Swiss firm Novartis agreeing to exchange a number of assets.

Novartis said on Tuesday it had agreed to acquire GSK's oncology products for $14.5 billion, plus an additional $1.5 billion contingent on a development milestone. GSK, meanwhile, will pay $7.1 billion plus royalties for Novartis' vaccines business, currently excluding its flu business, Novartis said.

In a separate deal, Novartis also agreed to sell its animal health division for around £5.4 billion ($9.06 billion) to American pharmaceuticals company Eli Lilly .

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