The agreement to join forces and respectively reshape their businesses will also see the two firms combining their consumer health units. Novartis will acquire GSK's cancer drugs business for $16 billion and sell its vaccines division, excluding the flu unit, to GSK for $7.1 billion.
In a separate deal, Novartis has agreed to sell its animal health division to Lilly for nearly $5.4bn. The firm said the moves would help it to focus on its key businesses.