NEW YORK (TheStreet) -- Shares of GlaxoSmithKline Plc (GSK) are up 4.56% to $55.54 in pre-market trade as Novartis (NVS) announced a multi-billion dollar revamp today, swapping assets with Glaxo and selling its animal health unit in a bid to simplify its business and increase its focus on high-margin cancer medicines, Reuters reports.
Novartis shares are up 1.11% to $86.41
Novartis said it will buy GlaxoSmithKline's oncology products for $14.5 billion, and sell to GSK its vaccines, excluding flu, for $7.1 billion plus royalties.
The company will also create a joint venture with GSK in consumer healthcare.
Additionally, Novartis said will sell its animal health unit to Eli Lilly (LLY) for about $5.4 billion.
TheStreet Ratings team rates GLAXOSMITHKLINE PLC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GLAXOSMITHKLINE PLC (GSK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, compelling growth in net income, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."