A rash of merger & acquisition activity in the healthcare sector has pulled equity markets higher this morning.
Pharmaceutical giants GlaxoSmithKline (GSK) and Novartis today announced a series of multi-billion dollar deals this morning, while AstraZeneca’s shares jumped following takeover rumours.
GSK has agreed a deal to buy Novartis’ vaccines business for $7.1bn (£4.2bn) while selling Novartis its own oncology division for $16bn, with the two firms also agreeing to jointly create a consumer healthcare business.
GSK’s shares are up by more than 4 per cent in early trading, while Novartis’ shares have also risen on the Swiss stock exchange.
Meanwhile, AstraZeneca’s shares have jumped by nearly 8 per cent this morning following rumours that US drug company Pfizer was interested in buying the UK firm.
The news has dragged up the rest of the healthcare sector and has lifted the FTSE 100 to a gain of nearly 1 per cent so far this morning, although mining firms are currently proving a drag on the index.
