NEW YORK (TheStreet) -- Novartis
(NVS - Get Report) stock is gaining on Tuesday after announcing a series of major deals with GlaxoSmithKline
(GSK) and Eli Lilly
(LLY) which will reshape the pharmaceutical industry.
By midday, shares had added 1.2% to $86.46.
Swiss firm Novartis said it would purchase GSK's oncology portfolio for $14.5 billion, plus an additional $1.5 billion pending results from key cancer drug trials. The purchase of that division will bolster its position as the second-biggest pharmaceutical player in oncology behind Roche Holding.
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Additionally, GSK will purchase Novartis' vaccines unit for a total $5.25 billion with up to $1.8 billion in milestone payments. The deal excludes Novartis' influenza business which it says it will sell separately.
The two firms will also create a separate consumer healthcare business dealing with nutrition, skin health and general wellness in which GSK will hold majority control with a 63.5% stake, while Novartis will hold the remainder.
In a separate transaction, Novartis agreed to sell its animal health division to Eli Lilly for $5.4 billion.
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