Top Mergers and Acquisitions: Novartis (NVS) and GlaxoSmithKline (GSK)
The aborted Pfizer bid for AZN means that the pharma industry’s largest consummated deal came only to $20 billion. That’s the total value of assets that Novartis (NVS) and GlaxoSmithKline (GSK) agreed to swap in what amounted to major restructurings for both firms.
Novartis bought GlaxoSmithKline’s cancer drug business, GSK took Novartis’s vaccine business, and the companies agreed to combine their respective over-the-counter and consumer drug businesses. Whew.
All the big pharmaceuticals players are desperately trying to “focus” their businesses (read: cuts costs until revenue comes back), and — on paper, at least — this deal makes sense.