Novartis India soars 20% as parent co revamps drug business

Novartis India soars 20% as parent co revamps drug business

Shares of Novartis India soared 20 percent intraday on Tuesday as its parent company is restructuring its drug business. The Swiss drugmaker Novartis is transforming its business by exchanging certain assets with GlaxoSmithKline and divesting its animal health business to Eli Lilly in deals worth billions of dollars. The revamp is the result of a keenly awaited strategic review at the company. Chief Executive Joe Jimenez said the changes would focus the company on innovative businesses with global scale. "They also improve our financial strength, and are expected to add to our growth rates and margins immediately," he said. Novartis said it had agreed to acquire GSK's oncology products for a USD 14.5 billion payment. The Swiss drugmaker will also divest its vaccines business, excluding flu, to GSK for USD 7.1 billion plus royalties. In a separate transaction, Novartis said it had agreed to divest its animal health division to Eli Lilly for approximately USD 5.4 billion. At 12:51 hrs Novartis India was quoting at Rs 501.10, up Rs 33.55, or 7.18 percent on the BSE. (With inputs from Reuters)