Glaxo Sells Cancer Unit for $16 Billion

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April 22 (Bloomberg) -- GlazoSmithKline CEO Andrew Witty discusses the sale of the company’s cancer unit on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

Transition has several parts.

It is the biggest since he be came ceo.

Why make this transition now?

What this transaction does is three things buried we acquired the vaccine business and we are disposing of of our assets to them for $16 billion.

Thirdly, most poorly, we are bringing together our consumer health care companies to create what will be the world's largest over-the-counter medicine business with a revenue of at least 6.5 billion pounds annually.

Are these transactions meant in part to protect against the patent lifecycle?

For gs k, we have made great progress on that front already through the reinvention and development of our -- we have had more new products approved in the recent past than any of the company and the west last year alone, 19% of all fda approvals were from gs k. we have had seven major new drugs and vaccines approved in the last wealth months.

That has really helped us move on from the expiration of our older generation.

If you look today, after this transaction, 70% of our business will be in consumer vaccines, which are all businesses with very long, durable revenue.

Long ago and far away, american boys would look at three-way deal is in baseball and know it always comes out ugly.

This is a complex transaction today involving three drug companies.

You, novartis and lily.

What is the confidence that all three will benefit from this transaction?

First of all him i'm not going to make any comment on baseball because i'm british.

[applause] [laughter] as far as this transaction is concerned, there's only two parties involved from our side.

Gs k and novartis.

It sounds like a complex deal but it is very simple.

We are acquiring 100% of their vaccine business.

They are acquiring 100% of our oncology business.

We are building a newnew joint venture that gs k will own and operate.

They're difficult from a contractual point of view.

We have done all that work and cleared all of that ground.

Wethese are straightforward transactions to take to the next level.

Does this transaction make glaxosmithkline less dependent on your pharmaceutical marketing sales force which has gone into a bit of trouble with investigations?

What this transaction does is strengthen our consumer organization and vexing organization.

We believe that gives us much more of a durable cash flow profile into the future.

It is increased thanks to pair payback to shareholders.

The mix of the business strengthens the profile of the company going forward.

Thank you for joining us.

The ceo of glaxosmithkline joining us to talk about the $10 billion deal that the company struck.

That was refreshing.

The ceo off script.

We want to bring you the headlines, valiant has offered $48 in cash and 0.83 shares of allergan.

We have done the math here over at bloomberg and it works out to a price per share -- we will

This text has been automatically generated. It may not be 100% accurate.

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