United Kingdom

Details

  • Service: Advisory, Transactions & Restructuring, Joint Ventures
  • Type: Press release
  • Date: 23/04/2014

Asset swap deals are a game changer for pharma industry 

Chris Stirling, global head of KPMG’s life sciences practice, comments on plans by Novartis and GlaxoSmithKline to engage in a multibillion-dollar asset swap deal.

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.”

 

- Ends  -

 

For press queries, please contact:
 

Katy Broomhead, KPMG Corporate Communications
Tel: 0161 246 4623 / 07824 537963
Email: katy.broomhead@kpmg.co.uk
 
KPMG Press office: 020 7694 8773
 
 
About KPMG

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

 

 

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