Novartis, Glaxo and Eli Lilly in $20 Billion Deals

Nigel Thomas
22 Apr, 2014
New York City

Philips net plunged 15% to

[R]4:00 PM Frankfurt – Philips net plunged 15% to €137 million and revenue dropped 5%. Novartis agreed to acquire cancer drug business from GSK for $16 billion and sell-off its animal health business to Eli Lilly for $5.4 billion. Schindler profit fell 4%.[/R]

In London trading, FTSE 100 index climbed 1.1% or 72.78 to 6,698.03 and in Frankfurt the DAX index jumped 1.7% or 155.37 to 9,565.08.

In Paris, CAC 40 index increased 1.1% or 47.37 to 4,479.18.

Koninklijke Philips NV declined 6.1% to €23.41 after the Netherlands-based healthcare and lighting company reported sales in the first-quarter ending in March dropped 5% to €5.02 billion from €5.26 billion a year ago.

Net income in the quarter plunged 15.4% to €137 million compared to €162 million and diluted earnings per share fell to €0.15 from €0.17 a year earlier.

Novartis AG gained 2.4% to 74.70 francs after the Switzerland-based healthcare company agreed to acquire cancer drug business from GlaxoSmithKline Plc for $16 billion.

Novartis will also sell its vaccines business excluding the flu operations to Glaxo for $7.1 billion the company said in a statement today.

Separately, Novartis said it will sell-off its animal health division to the U.S.-based Eli Lilly and Co for about $5.4 billion and plans to sell its flu business.

In London Stock Exchange, shares of GlaxoSmithKline climbed 5.4% to 1,643 pence.

Nokia Oyj gained 2.3% to €5.44 after the Finland-based mobile devices maker plans to close the sale of its devices and services business to Microsoft Corporation on April 25.

Nokia intended to publish its interim reports of first-quarter on April 29 before the beginning of trading on the Helsinki stock exchange.

RSA Insurance Group Plc jumped 2.3% to 94.70 pence after the U.K.-based insurer reached agreement to sell its operations in the Baltics and Poland for £300 million or $503 million.

Schindler Holding AG jumped 2.3% to 134.70 francs after the Switzerland-based escalators and elevators maker reported revenue in the first-quarter ending in March climbed 8.8% to 2.05 billion francs from 1.98 billion francs a year ago period.

Net profit in the quarter dropped 3.6% to 160 million francs compared to 166 million francs a year earlier.