the oncology unit, the cancer treatment unit for $16 billion and selling the vaccine business excludingw operations, that will be sold separately. at 7.1es to glaxo billion dollars. getting more money from eli lilly. buying the animal health business. perhaps the most interesting is teaming up with glaxo to formic lth sooner -- a consumer hea care business. big,unit will be pretty germany revenue of $10 billion. some pretty big steps to get rid of some of those smaller businesses and big step. for the industry as a whole, everyone is expecting more action in this industry over the next coming weeks and months. >> let's talk to the man who knows more about it than any of us. he is the ceo, joe jimenez. to usyou for talking first. it is good tohave you here on what has to be an historic a for your company. >> yes, it really is. it is a great day for novartis as we announced the conclusion of our work folio review. >> what is most exciting to about what you are announcing today, you have given us a series of deals and focusing on eye care and pharma and generics looking ahead. where is the

they are buying glaxo smithkline's oncology unit for $14.5 billion. novartis is selling its vaccines business to british drugmaker for $5.25 billion, both deals include milestone payments that could raise the total values. novartis and glaxo plan to combine their consumer divisions in a joint venture. glaxo will own 63% of venture which will be one of the world's largest with nearly $11 billion in annual revenue. the deal's fundamentally reshape novartis, bringing it higher, margin products such as cancer drugs. separately, novartis will sell its animal health division to eli lilly for $5.4 billion and is also looking to sell its flu business, checking shares of novartis, glaxo and lilly, all higher on the day. >>> a programming note, sir andrew witty will be on "squawk box" at 6:40 a.m. eastern and john lickliter will follow at 7:15. >>> allergan has a market cap of $42 billion. a deal would combine two midsize drugmakers with expertise in skin and eye care products. allergan is larger by revenue generating $6.3 billion last year while valaent report

it is buying the oncology unit. we have a slew of other m&a activities. people claiming they were looking at mergers. the pharmaceuticals are doing pretty well. it is the first report since the less carrier. joining us for a preview is jonathan. >> don't be fooled. the share of the market in china has been contracting somewhat. you have got to say the only reason we are talking about this company is it has a multi-hundred million subscribers and apple has finally got be iphone in the game. no big cues. that's because it was already on sale in china. there were one million pre-orders for the device in january. that is what the market and everybody invested really cares about. iphone sales expected at 37.7 million units. ipads 20 million. a lot of tech companies would be happy to be that in a year, let alone a quarter. it's about getting those clues. >> thank you so much. for more of his views on the market is the global market strategist with jpmorgan. when you look at china mobile, three quarters of the story is a play on china, but the other half is a pl

novartis is buying glaxo's oncology unit for $14.5 billion and at the same time selling most of its vaccinesess to glaxo for $17.1 billion. it's weird the way this is structured. the investment bankers involved in this are going crazy. i don't know if money eventually changes hands. in a separate deal it will sell its animal health division to eli lilly, this is for $5.4 billion. we are going to talk to the chief of glaxo, sir andrew witty in just a couple minutes to discuss why his company is doing these deals with novartis. at 7:15 eastern we'll talk to eli lilly chief executive john lechleiter who we talk to a lot about, he's lost some patent protection on huge drugs. they've been dealing with trying to replace those revenues. now they'll get into the animal health business in a much bigger way. years ago, mario, super mario. i have three dogs. i don't walk out of the vet -- people love their pets. i don't walk out of the veterinarian office without $500. >> he's smart. you know what he said with the bad winter season, the day before you got a flat tire he had said you want to be investin

the swiss drugmaker acquiring to acquire glaxo's oncology products unit for $42.5 billion, divestingost of its business to glaxo and selling animal health division to lily for $5.4 billion in cash. a complicated trio of deals. >> main take away you this industry regarded as a value industry and overnight it's an m and a value growth and whether it be pfizer doing astrazeneca, bern stein says that's doable, eli lilly in the game. merck's animal business is for sale. david talked about a huge number. these companies are undervalued by the street because they do not have the great growth. if lily's animal health, has got this business that is not as good as merck's, who knows how much merck's consumer and animal health business is worth? >> right. consumer is a big name. recit is the name i keep hearing about. we've been waiting to see what novartis would do with this. somewhat complicated in terms of forming the joint venture and glaxo as well with the big transaction, jim. but there is a lot going on in pharma. no doubt about that. i would pour a little cold water on pfizer and astra