Spring Fever? Novartis, GlaxoSmithKline, and Eli Lilly’s Deal-Making Frenzy

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Source: Thinkstock

Source: Thinkstock

Eli Lilly & Co. (NYSE:LLY), Novartis AG (NYSE:NVS), and GlaxoSmithKline plc (NYSE:GSK) have been shuffling assets recently, according to press releases from the three companies. Eli Lilly announced Tuesday morning that it has made an agreement with Novartis to buy the drugmaker’s animal health unit, while Novartis and GlaxoSmithKline announced that they would exchange businesses.

The deals will radically transform all three companies, allowing each to focus on their strongest businesses, analysts say. “We’re talking about three companies swapping assets so that each can specialize in what they’re good at and make it even more profitable,” said Ori Hershkovitz, a managing partner at Sphera Funds who spoke with Bloomberg.

Under its agreement with GlaxoSmithKline, Basel, Switzerland-based Novartis would acquire some of that company’s oncology products, adding to its already impressive line-up. The Wall Street Journal notes that once the deal closes cancer drugs will account for nearly a fifth of the company’s expected $54 billion in revenue.

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