Britain's GlaxoSmithKline PLC and Switzerland's Novartis AG have completed a three-part deal that will offer the British company's shareholders a 4 billion pound (USD 6.17 billion) windfall.
Under the complex arrangement that closed today, Novartis agreed to buy GSK's cancer drug business for USD 14.5 billion, plus up to USD 1.5 billion more if certain milestones are met.
GSK agreed to buy most of Novartis' vaccines business for USD 5.25 billion, plus royalties of up to 1.8 billion, giving GSK better market position in the meningitis B vaccine portfolio.
The deals were the latest in a string of mergers and acquisitions that have swept the industry as major players adjust to competition from generic drugs.
GSK and Novartis also formed a consumer health care business in a joint venture.
