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September 30, 2015updated 01 Jun 2021 11:36am

GSK Pharma completes acquisition of Novartis Healthcare’s vaccines business

GlaxoSmithKline Pharmaceuticals has completed the acquisition of Novartis Healthcare's vaccines business, while selling its marketed oncology portfolio to Novartis India.

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GlaxoSmithKline Pharmaceuticals has completed the acquisition of Novartis Healthcare’s vaccines business, while selling its marketed oncology portfolio to Novartis India.

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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.

“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 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.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
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