In a deal akin to the Boston Red Sox swapping players with the New York Yankees and Los Angeles Dodgers at the same time, three of the biggest “Big Pharmas” have agreed to a whopper of a deal. Novartis AG (NOVN) seems intent on reinventing itself, as the company has agreed to buy GlaxoSmithKline Plc’s (GSK) entire line of cancer drug assets for as much as $16 billion. In return, NOVN will sell its vaccine business (excluding flu assets) to GSK for $7.1 billion. NOVN has also agreed to sell its animal health operation to Eli Lilly & Co. (LLY) for an additional $5.4 billion. Who knows how this Big Pharma three-way will reshape share prices for Novartis, Glaxo or Eli Lilly? Our guess? One of the three will make out like a bandit.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager. As well as a book author and regular contributor to numerous investment websites, Jim is the editor of:
Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:
Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services: