The deal would be completed by October, subject to various regulatory approvals, Novartis told the stock exchange.
The development is a follow-through of a over $23 billion transaction that took place between the multinational drugmakers Novartis, GlaxoSmithKline and Eli Lilly, last April. The global deal awaits anti-trust and other regulatory approvals.
Global deal
As part of the global deal, GlaxoSmithKline’s cancer drugs segment was to move into Novartis’ fold for a consideration of $16 billion, even as vaccines moved out from Novartis and into GSK’s kitty for $7 billion.
But on the consumer healthcare front, Novartis and GSK were to create a joint venture company, where GSK was to have majority control with focus on wellness, oral health, nutrition and skin-care.
A GSK representative had said at the time of the global transaction that the deal did not include GSK’s consumer healthcare business in India. Novartis’ products including Voltarin, Excedrin and Otrivin move out to the joint venture.
In its statement, Novartis said, “Factors considered by the board in its consideration of the OTC transaction included, but were not limited to, the prospects for the company’s OTC business in India following the divestment of Novartis AG’s global OTC business, including all of Novartis AG’s major OTC patents, trademarks and R&D assets; the valuation for the transfer of the OTC Division ; and the enhanced ability of the board, the company’s management and all retained employees to focus on the growth of the company’s retained businesses.”
