Acquires certain oncology products and pipeline compounds from GSK
Novartis has completed a series of transactions with GlaxoSmithKline (GSK). It includes the acquisition of certain oncology products and pipeline compounds from GSK for the creation of a world-leading consumer healthcare business through a joint venture that combines the two companies’ consumer divisions, and the divestiture of the Novartis non-influenza vaccines business to GSK. The transactions were announced in April 2014 as part of the Novartis global portfolio transformation.
Joseph Jimenez, Chief Executive Officer, Novartis siad, “We expect this evolution of our strategy to improve margin performance and position us well to meet future changes in the healthcare industry.”
Since the end of 2013, Novartis has engaged in a series of transactions to sharpen the company’s focus on three core business segments with global scale: innovative pharmaceuticals, eye care and generics.
Novartis Oncology now manages a portfolio of 22 oncology and haematology medicines to treat more than 25 conditions worldwide. Newly-acquired therapies in melanoma, renal cell carcinoma and haematology complement Novartis Oncology’s existing group of practice-changing medicines to create a large portfolio of drugs in oncology and haematology, targeting important biological disease pathways.
Based on the depth and breadth of the Novartis Oncology R&D and commercial capabilities, it is anticipated that Novartis will be able to optimise the therapies acquired from GSK. These include: Tafinlar, Votrient, Promacta.
Novartis also has opt-in rights for GSK’s current and future oncology R&D pipeline (excluding oncology vaccines), which could be a source of new compounds and new targets. Sales of the acquired GSK oncology products in 2014 were approximately $2 billion and grew approximately 32 per cent in local currency against 2013.
Novartis OTC and GSK Consumer Healthcare jointly form a global consumer healthcare leader in which Novartis maintains significant interest through the ownership of a 36.5 per cent share. GSK Consumer Healthcare is expected to have leading positions in four key OTC categories – wellness, oral health, nutrition and skin health. The joint venture has scale and commercial presence in the developed world as well as in key emerging markets.
EP News Bureau – Mumbai
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