Novartis India surges 20% as parent company strikes $15 billion deal with GSK, Lilly

GENEVA: Novartis India, a subsidary of Swiss-based Novartis, surged 20% in intraday deals to Rs 561 after the drug maker Novartis said it has signed several multibillion-dollar deals with GlaxoSmithKline and Lilly that will affect some 15,000 of its employees.

The stock opened at Rs 469 and touched the high of Rs 561 and low of Rs 465. Trading volumes on the counter have surged more than 10 times as 5,58,000 shares have changed hands compared to its two week average of 10,000 shares

The Basel, Switzerland-based company said on Tuesday it will buy GSK's oncology products business for $14.5 billion, plus up to $1.5 billion more if certain milestones are met.

It will also divest its vaccines business to GSK, excluding its flu business, for $7.1 billion, plus royalties. The two companies are also creating a new consumer health care business through a joint venture.

Separately, Novartis said it will sell off its animal health division to Lilly for about $5.4 billion and plans to sell its flu business.

Novartis CEO Joseph Jimenez told reporters the transactions will raise profits and "affect 15,000 Novartis employees," but didn't specify in which way.