The deal follows a global transaction between their parent companies UK-based GSK and Swiss drugmaker Novartis, which was completed earlier in March on a similar basis.
The addition of Novartis ‘s vaccines business, which will exclude the one for influenza, will help GSK strengthen its global market share in this area.
The deal will improve GSK’s vaccines portfolio and bring together its expertise in virology, bacterial infection and technological platforms to deliver a reliable supply of high-quality treatments.
The move completes the company’s major three-part transaction with Novartis.
As part of the three-part deal, the companies have created a new consumer healthcare joint venture, which GSK will have a controlling 63.5% equity interest, while Novartis will own 36.5%.
GSK CEO Sir Andrew Witty said: “Completion of this transaction represents a major step forward in the group’s strategy to create a stronger and more balanced set of businesses across pharmaceuticals, consumer healthcare and vaccines.”
As part of the deal, GSK agreed to pay $5.25bn for Novartis’s vaccines business, while Novartis purchased GSK’s oncology division for $16bn, including $1.5bn if certain milestones are met.
Under the vaccines acquisition, GSK agreed to sell its meningitis vaccines Nimenrix and Mencevax on a global basis, as well as divest two small Novartis bivalent vaccines for protection against diphtheria and tetanus in Italy and Germany.
Regarding this three-part transaction, the UK drugmaker had secured approval from the European Commission (EC) in January this year.
Image: GlaxoSmithKline headquarters in London, UK. Photo: courtesy of Maxwell Hamilton.