Another day, another big pharma deal. Novartis and GlaxoSmithKline became the latest companies to join the industry’s mergers and acquisition frenzy on Tuesday with a sweeping exchange of assets that will reshape both companies.
It followed the launch of a $50bn bid by Valeant Pharmaceuticals and Bill Ackman, the activist investor, for Allergan, the maker of Botox anti-wrinkle treatments, and revelations that Pfizer had made a tentative $100bn approach for AstraZeneca.
In part, the dealmaking reflects renewed bullishness in the sector as drugmakers begin to eye new growth opportunities after clearing the worst of the patent losses and innovation drought of recent years.