Why Novartis (NVS) Stock Is Up Today

NEW YORK (TheStreet) -- Novartis (NVS) 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.

SELL NOW: If you own any of the 900 stocks that TheStreet Quant Ratings has identified as a 'Sell'...you could potentially lose EVERYTHING in the next 6-12 months. Learn more.

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. 

Must Read: Warren Buffett's 10 Favorite Growth Stocks

STOCKS TO BUY: TheStreet's Stocks Under $10 has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.


WATCH: More market update videos on TheStreet TV

More from Markets

Three Big Factors That Rocked the Stock Market Tuesday

Three Big Factors That Rocked the Stock Market Tuesday

Dow Tumbles Over 400 Points; S&P 500 and Nasdaq Also Finish Lower

Dow Tumbles Over 400 Points; S&P 500 and Nasdaq Also Finish Lower

Caterpillar Bulldozes Industrial Sector With Bad News on Earnings Call

Caterpillar Bulldozes Industrial Sector With Bad News on Earnings Call

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Eli Lilly CEO Expresses Confidence in New Rheumatoid Arthritis Drug

Eli Lilly CEO Expresses Confidence in New Rheumatoid Arthritis Drug