Welcome to the Big Leagues, Big Pharma

Welcome to the Big Leagues, Big Pharma (Bloomberg)

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.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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