Novartis, GSK, Lilly in multibillion-dollar deals

April 22, 2014 12:56:15 AM PDT
Drug maker Novartis says it has signed several multibillion-dollar deals with GlaxoSmithKline and Lilly that will affect some 15,000 of its employees.

The Basel, Switzerland-based company said Tuesday it will buy GSK's oncology products business for $14.5 billion, plus up to $1.5 billion more if certain milestones are met.

It will also divest its vaccines business to GSK, excluding its flu business, for $7.1 billion, plus royalties. The two companies are also creating a new consumer health care business through a joint venture.

Separately, Novartis said it will sell off its animal health division to Lilly for about $5.4 billion and plans to sell its flu business.

Novartis CEO Joseph Jimenez told reporters the transactions will raise profits and "affect 15,000 Novartis employees," but didn't specify in which way.