Commenting on plans by Novartis and GlaxoSmithKline to engage in a multibillion-dollar asset swap deal, Chris Stirling, global head of KPMG’s life sciences practice, said:
“The multi-billion dollar asset-swap deal announced by Novartis and GlaxoSmithKline could prove to be a real game changer for the pharmaceutical industry.
“The last twelve months have seen all of the major players in the sector undertake root and branch reviews of their portfolios, leading them to draw conclusions about which parts of their business are core and non-core.
“We are also seeing companies learn the lessons of the past. The wave of ‘mega mergers’ we saw a decade ago sparked criticism that they didn’t deliver significant shareholder value.
“Large companies are now seeking innovative deal structures to protect and generate shareholder value. This latest deal is a good example with the structure comprising an asset swap of the companies’ respective vaccines unit and portfolio of cancer drugs and the merging of their consumer health businesses via a joint venture agreement.
“Interesting new deal structures like this will be instructive for the pharmaceutical industry and large businesses more widely, as they seek to restructure their portfolios of assets.”
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