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Making Sense of Novartis and GlaxoSmithKline's Web of Deals

The pharmaceutical industry had a deluge of M&A activity on Tuesday as heavyweights Novartis and GlaxoSmithKline announced they were trading $20 billion worth of assets. Novartis will purchase GSK's oncology portfolio for $14.5 billion, strengthening its number two spot in the specialty. Meanwhile, GSK will purchase Novartis' vaccines unit for $5.25 billion. The two companies will also form a separate consumer healthcare business in which GSK will hold a 63.5% majority stake.