Novartis and GlaxoSmithKline complete three-part transaction

Novartis and GlaxoSmithKline have completed a major three-part asset transfer and collaboration deal originally announced in April 2014.

The agreement sees Novartis acquire GlaxoSmithKline's oncology business for an aggregate cash consideration of $16 billion (10.38 billion pounds), while Novartis has sold its global vaccines business, excluding influenza vaccines, for $5.25 billion.

Additionally, the companies have joined forces to create a new world-leading consumer healthcare joint venture, with GlaxoSmithKline assuming majority control and an equity interest of 63.5 percent.

This will aid Novartis' strategy of sharpening its focus on three core business segments – innovative pharmaceuticals, eye care and generics.

Joseph Jimenez, chief executive officer of Novartis, said: "We expect this evolution of our strategy to improve margin performance and position us well to meet future changes in the healthcare industry."

GlaxoSmithKline, meanwhile, expects the deal to aid its efforts to enhance its presence in the pharmaceuticals, consumer health and vaccines markets.