Landmark deal as GSK and Novartis trade assets

Up to 800 of GlaxoSmithKline’s (GSK) Irish employees will be affected by the announcement that the company is to trade assets with Novartis in a $20bn (€14.5bn) deal.

The two pharma giants announced that they were strategically swapping assets aimed at bolstering each company’s best business portfolios while exiting weaker sectors as the drugs industry reshapes to cope with healthcare spending cuts and generic competition.

Oncology products will transfer over to Novartis and, in exchange, Novartis Vaccines unit will become part of GSK. The two companies will also create a joint venture in the consumer healthcare space.