Novartis hails transformative impact of new GlaxoSmithKline deal

Novartis has hailed the potentially transformative impact the transactions it announced with GlaxoSmithKline this week will have on its business.

The companies signed a series of deals that will see Novartis acquiring GlaxoSmithKline's oncology portfolio, with Novartis' vaccines division going the other way. The firms will also combine their consumer health businesses into a new joint venture.

Separately, Novartis has also agreed to sell off its animal health unit to Lilly, allowing it to focus on its core areas of pharmaceuticals, eye care and generics. It is thought that this will give rise to greater innovation and improved shareholder returns.

In particular, the oncology acquisition ensures the firm now has one of the industry's largest and most robust cancer drug pipelines, with GlaxoSmithKline's products strengthening its position in targeted therapies and small molecules.

Joseph Jimenez, chief executive of Novartis, said the transactions "focus the company on leading businesses with innovation power and global scale. They also improve our financial strength and are expected to add to our growth rates and margins immediately".

This comes after the firm named Jeff George as the new division head of Alcon and Richard Francis as the boss of Sandoz earlier this month.