NEW YORK (TheStreet) -- GlaxoSmithKline (GSK) shares are up 0.6% to $43.32 in pre-market trading on Monday after the healthcare company agreed to sell two of its meningitis vaccines to Pfizer (PFE) for $131 million today, according to the Wall Street Journal.
The sale was a result of its obligation to divest some of its properties in an effort to alleviate anti-trust concerns raised by European regulators over its proposed series of asset swaps with Novartis (NVS) that are worth more that $20 billion.
GlaxoSmithKline acquired Novartis's global vaccine business, excluding influenza vaccines, for $5.25 billion in March, leading to the regulatory scrutiny that necessitated today's sale to Pfizer.
The two vaccines, Nimenrix and Mencevax, which are sold outside of the U.S, had global sales of $54 million in 2014.
Pfizer shares are flat at $34.18 in pre-market trading.
TheStreet Ratings team rates GLAXOSMITHKLINE PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GLAXOSMITHKLINE PLC (GSK) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, expanding profit margins and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow."