Bloomberg: Novartis may acquire GSK

According to Bloomberg, London-based stock research firm Intron Health reported that Novartis is considering a major acquisition, and GlaxoSmithKline (GSK) could be a potential acquisition target
.

Analyst Naresh Chouhan believes the potential collaboration with GlaxoSmithKline (GSK) will allow Novartis (NVS) to re-enter the vaccine market and virology to diversify its business away from the highly competitive and risky oncology space
.

In 2015, Novartis spun off its global vaccine business, excluding flu vaccines, to GlaxoSmithKline (GSK)
following a $5.
25 billion deal.

Even with a 40 percent premium, analysts expect that assuming synergies of $2 billion and a cost of debt of 6 percent, the deal could add more than 40 percent
in three years.
By 2025, cash-based transactions will reduce pro forma net debt to 2.
4 times
EBITDA.

The financial burden
on GSK due to the claim in the ranitidine lawsuit.

Especially in August this year, GSK shares were sold off in the secondary market, and the market value fell by more than 30% from the $100 billion at the beginning of 2022, and now only hovers around $70 billion, bidding farewell to the "Top 10 Global Pharmaceutical Companies Market Value Club"
.

The sharp decline in GSK's market capitalization could set the stage
for a potential acquisition.

This is another signal
of a potential strategic change following Novartis' disclosure in mid-November that it was considering selling its ophthalmology and respiratory business units.

Swiss pharmaceutical giant Novartis is currently considering selling certain "non-core" businesses, according to Bloomberg, citing unnamed people familiar with the matter

Original: https://seekingalpha.
com/news/3912660-gsk-stock-gains-on-buyout-claims-linked-to-novartis#:~:text=GSK%20%28NYSE%3A%20GSK%29%20could%20be%20a%20potential%20buyout,Health%2C%20an%20equity%20research%20firm%20based%20in%20London.