an investigative panel set up by the swiss based parent of japanese firm novartis pharma has concluded its employees manipulated tests of a new leukemia drug. executives of novartis pharma have admitted their staff interfered with trials on the drug known as to cigna the university of tokyo hospital in organizations conducted the studies. the panel report says the employees and to the geese guidelines and worm will have a chance for the planning to data analysis stage. the panel concluded the employees got three of the relevant documents last december after learning of any cheese coverage of the issue. the report says staff are deaf patient data is obtained from doctors. a possible violation of privacy laws. the panel said their managers are responsible for failing to provide proper supervision and for allowing their involvement in the drug trials the night. it is going to have great faith that the company has been contacted in korea but the company. penalties could be a lot of the called involvement of the staff of polling. novartis pharma officials say they take to study seriously th

pharma is back in focus after novartis results came in line and astrazeneca missed. us is the head of european pharma research. great to have you on the program. first of all, we focus on the mna. how telling are these results? the earnings will be changed in the future as all these companies find their battleground. >> what we have seen in novartis this morning is strong results. been a big issue and will continue to be a big issue. pharma continues to be the main driver in novartis. that is somewhere they have strength. that is what we saw with the gs k deal. , the results were disappointing because they were investing for the future. we see investments in the new pipeline. and we have seen an investment in a new diabetes asset they have launched. i think for astra, the key is about how they can execute on the pipeline. look at thewhen you share price, astrazeneca has gained 2.5%. earnings were lower but investors are focusing on the pipeline and the drugs they have that will be working. what is going to be the most revolutionary thing coming out of the pharma secto

to discussus now novartis and the other farmer pharma deals is sam. tt, let's kick it off with you. this is novartis streamlining, selling off to yet and said they are ready -- 2 younis and send they are ready to sell off. but this is actually 4 transactions in one day which is remarkable for any company especially a company that has been going through as a joe him and has mentioned this portfolio review. ishe alluded to, the company built around a visa three big businesses. they do have a roadmap going for. the question becomes, the pharma sector is very rapidly moving dynamic sector. no one is standing was dealt -- still as we have seen from other companies. this a very fast-moving sector. whether it is enough for novartis to keep going is the big question. and were is a lot of m&a learned that pfizer was looking into a deal. it has now stopped. what does it mean for novartis? the strategy is clear but fast-moving. do they have it right? >> two or three things they have done has been in line with what they have been saying. realizing value. getting r

pharma. we have every angle covered. bill ackman teaming up with valiant to bid for the botox maker. novartis, lily in a strings of multibillion dar deals. we call it pharma palooza. what does it mean for you? this, folks, is "power lunch." this, sue, is your "power lunch" on drugs. >> indeed it is, certainly today. we have it all covered with a fantastic team. pershing square's big ackman and valiant's ceo presenting their idea before investors and the media in new york a bit earlier. kate kellie has the takeaway. high, kate. >> we're well into hour number two of this investor presentation when we heard from both. big ackman taking the stage for the second time since i've been here just as i walked out. he'll be taking q&a in just a few minutes. a quick reminder on what this deal entails. it's essentially a proposes cash and stock transaction in which every share of allergan would be received for cash as well as a large majority of a valeant shares, a lot of talk from michael pearson today who's been successful in dlirg shareholder returns about the durability of his assets, the products, th

pharma space. dominated by the act on avis-forest -- act transaction. novartis wants to sell vaccines and get out of businesses that or not critical mass. that is the case for vaccines and animal health. potentially the most likely partner here. it all makes sense. the one surprise was oncology. the deal they did with gsk. some headlines saying we were number 14 in oncology, go figure. that is perhaps what happened. from the novartis perspective, they are amassing a better position in this exciting area of him you oncology. -- immuno oncology. any bearing on what pfizer and astrazeneca would have done? >> they were in talks -- >> a rumor -- >> they are not resuscitating these but they have talked. >> important not to over interpret this, big companies talk all the time. there was something a few months ago between pfizer and astrazeneca that did rise above that level. it were serious but very informal conversations. to be dead or dormant but they could always come back. given the broader atmosphere around some of these big transactions, it is not crazy to think

novartis making a splash there. it's all about pharma. lk to me about novartis. >> it goes back to introspection. investors have been telling them you don't have a great ago seen business, your pet business is underscaled. and finally they've done something about it. on the conference call today, all novartis talked about is it's buying -- or a lot of time was spent on the acquisition of glaxo's business and how complementary it would be for their oncology business. so here again, focusing on the thing they're really good at which is oncology. >> didn't they spin off their business, zoete simbings? >> pfizer. they sold their bet business to eli lilly in this case and rehauled their entire business today. >> a lot for you to do today. >> and more to come. >> as bloomberg television's a reporter. thanks so much. luxury cars are rolling out big in china. we'll explore the growing market for high-end rides down under next in our "global outlook." ♪ >> the beijing auto show is underway and demand for high-end cars is showing no sign of slowing

. >> the friendly ones really took place in the orchestrated swap of parts of these pharma companies in you novartis buying glaxo's canner business. glaxo selling the vaccine business to novartis, and then teaming up in consumer health cares with brands lie exdrin and sense odine. >> it sounds lie an nba trade. is this good for everybody? >> some people are saying it really looks like it is good for everybody. novartis was number two in cancer, glaxo number two. glaxo for a long time has been a leader in vaccine, now they're beefing up even further. >> and it has been a very strong start to the year when it comes to pharma m & a. the strongers start since 2009. >> and that doesn't include the hostile deal we're talking about. >> let's talk about the not so friendly deal of today. and in order to identify some of the targets out there. >> you know what happened, you are staring in herb's eyes. >> totally distracted. i'm not used to gazing at herb's beauty. >> it happens to me all the time. >> it was amazing. >> herb greenberg is here. >> he is here, distracting me. we want to talk about some of the p

we will have more on the novartis deal and what it means for pharma stocks.en is coming up in 11 minutes time. we will be back after a short rate. -- break. ♪ >> welcome back. >> the time in london is 7:52. let's take a look at stocks to watch. to see you.ood i hope you had a lovely easter rate. we have had big news from units,s buying some selling some units. we are going to see how this is going to affect markets as they open. >> i think the drug sector is going to get a big push. you have got this possible deal with astrazeneca as well. fivenk it will be between percent and 10%. it seems to be positive for everyone. shareholders are going to get about 4h back, so billion is going to be returned. i think it is good news for investors and should put some positive momentum into markets today. developments seem to be shrugged off by markets, especially when you look at european futures. i suppose that can change at any moment, can't it? >> we are going to get this uneasy situation in ukraine for some time. the markets are going to assume there is not going to

pharma deal ever. meanwhile, investors have been welcoming news that the swiss pharmaceutical company novartis will be requiring the oncology division of glaxo smithkline for $14.5 billion. it's also selling glaxo smithkline's vaccine unit for $5.25 billion. big news there. novartis is selling its animal health division to eli lilly for $5.4 billion. all of these stocks trading higher. over here on the corner, philips posting a bigger than anticipated drop in its quarterly profits. restructuring costs and the strong euro, they say, have weighed on earnings. we'll be talking about the m & a momentum, especially heading into the session today. let's take it back to the macro environment. we're seeing selling of the 10-year gilt. as well as the bund. we'll be getting thoughts from one of our main guests this morning about what he thinks of periphery bond markets. currency rates, here we're looking at the euro dollar, very flat. still around 1:38 level. no change there. dollar/yen hanging on to 102.5. remember, we've got both the u.s. fed, we have the bank of japan, giving announcements later on this mont

the deal that glaxo made with novartis will be a focus. that shift away from pharmaery important. >> thank you very much. that sets us up very nicely for our glaxo numbers. that will do it for us. we will see you tomorrow. ♪ . . >> welcome to "on the move." i m&a's connie at bloomberg's european headquarters in london, infra francine lacqua. just moments away from the start of european trading, we have everything covered from companies to currencies. here with me now, ryan chilcote, jonathan ferro and david tweed. jon, let's kick it off with you. futures indicating just a nudge lower. what is going to be the focus of the day? >> euro zone inflation. last month, 0.5%. this is the first reading for the month of april, expecting it to bounce back to 0.8%. there is a risk that it comes under that point. i think the spanish numbers -- >> we are waiting for the spanish gdp and the retail sales to come out. as soon as we get those, we will flash those at the bottom of the screen. david tweed, you have got the stock of the day. alstom, we are waiting for it to open. it looks

here are the novartis oncology deal with glaxosmithkline where nobody was expecting that, and that was the biggest of the deals, and this pfizer-astrazeneca one. we heard a lot from pharma companies saying we don't believe in megamergers. >> there is a common theme. >> if you look at pfizer's commentator, they never said that. whole marketot the pumped up? you said the oncology deal with novartis along with glaxo, here we are with pfizer going after astrazeneca. do these kind of deals bank up? >> one of the reasons they may be doing this now as opposed to before -- there is no logic to that -- but pharma companies are now getting through. they are getting more confident with regards to their capabilities. perhaps they want to be making sure that they are the big winners going forward. that is one of the few things i can think of as a major driver. they are feeling a little more comfortable with their own valuations. >> gentlemen, we believe that there. this is a suspect we will be talking about more over the next few weeks. manus cranny and sam joining us from bloomberg industries. let's continue the m&a theme. francine, over to you. >> thank you so much. let's focus on

absolutely, a $28.5 billion three-way pharma shuffle that happened this morning between novart novartisess for $16 billion. in exchange glaxo is buying novartis' vaccine business for $7.1 billion and novartis selling its animal health business to eli lilly for $5.4 billion. on top of that novartis and glaxo partnering in consumer health care. this is a swap the trading that's going on, among these big pharma companies. each trying to beef up in areas where it's strong and getting out of the areas where it's not competing as successfully. >> the focus. the laser focus on some of their businesses seems to be the theme. the one that involves bill ackman not so much for the activist which is unusual for itself but what it would mean, a tie up of allergan and valeant. >> this is a fascinating merger. yesterday market caps of $42 billion. valeant has been on the acquisition spree part of its strategy, buying companies, getting out of r and d, cutting jobs, selling the drugs more efficiently and making more money that way. they've said they want to be ap top five big pharma company in the worl

pharma works together, separately. stocks moved yesterday on what's being called a major 3-part transaction in the drug industry. glaxosmith kline is selling its cancer products business to novartis for the price tag of 14 and a half billion dollars. novartis will turn over its animal health division to u.s. firm eli lilly for 5 billion dollars. and glaxo will buy the vaccine division from novartis. shares of glaxo and novartis made advancements during the session ... eli lilly dropped 1%.the deals are expected to be complete in the first half of 20-15. another quarter of disappointing results for mcdonald's. fir the first 3 months of the year it reported a sales decline of 1.7%. the world's largest restaurant chain has been struggling for more than a year to introduce new menu items while its rivals did that and pushed discounts. the company did point to some good news - declines were narrowing and global sales were slightly higher in april. mcdonald's closed down 35 cents yesterday. the activist investor pressing darden restaurant group to halt spin-off efforts of its red lobster chain gets some shareholder backing. jeffrey smith's starboard value has gotten consent from 54% of

pharma industry? >> definitely. you want to do what you do best. if you look at novartisn grappling with diagnostics, vaccines and pharmaceuticals for the last couple of years. they have been unable to bring -- of course animal health. they have been uneable to bring these industries into profitability and the sensible thing to do was to swap it for an ais the they know how to do best, which is oncology. they are the second largest oncology company in the world after rarb. -- rauch. you have seen an asset swap. they just don't know how to manage for an asset they know how the manage very well. it is a win-win for everyone. >> talk to me about the astrazeneca-pfizer talk. they were in talks, informal talks a month or two ago. they didn't lead to anything. would pfizer come back and make an approach? could astra seek to merge with another partner? could pfizer end up pursuing somebody else? some say bristol meyers squib is more suitable for pfizer. potentially we have some m&a that could be taking place soon. >> so i think first off you to talk about pfizer. the things that