Britain's GlaxoSmithKline PLC and Switzerland's Novartis AG have completed a three-part deal that will offer the British company's shareholders a 4 billion pound ($6.17 billion) windfall.
Under the complex arrangement that closed Monday, Novartis agreed to buy GSK's cancer drug business for $14.5 billion, plus up to $1.5 billion more if certain milestones are met. GSK agreed to buy most of Novartis' vaccines business for $5.25 billion, plus royalties of up to 1.8 billion, giving GSK better market position in the meningitis B vaccine portfolio.
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The deals were the latest in a string of mergers and acquisitions that have swept the industry as major players adjust to competition from generic drugs.
GSK and Novartis also formed a consumer health care business in a joint venture.