Novartis Completes Unit Sale

It also signs a deal with Intercell.
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Novartis

(NVS) - Get Report

took a step closer to narrowing its focus on health care by closing the $2.5 billion sale of its medical nutrition business to

Nestle

.

The last step in Novartis's divestiture campaign is expected to come later this year when it completes the sale of the

Gerber

baby foods business to Nestle for $5.5 billion. Novartis announced the

Gerber deal in April and the medical nutrition agreement last December.

Separately, Novartis signed a deal with

Intercell

, a Vienna-based developer of vaccines, that gives Novartis the right to develop and market certain products. Intercell will receive an upfront payment of $368 million. The payment includes Novartis's purchase of 4.8 million new shares of Intercell stock -- the company is traded on the Vienna Stock Exchange -- giving Novartis a 16.1% stake.

Novartis has owned 6.1% of Intercell through a previous vaccine agreement signed in 2006. The latest deal requires approval by regulators, including those in the U.S.