GENEVA: Swiss pharmaceutical giant Novartis and British group GlaxoSmithKline announced a major shake-up of their healthcare divisions on Tuesday in deals worth billions of dollars.

The string of takeovers and ventures involves three giant healthcare groups and will affect several areas of healthcare, and also animal welfare, in the fast-changing global health sector, including markets in emerging economies.

Novartis said it would buy GSK’s oncology (cancer treatment) business for $16bn (11.5bn euros) in cash and will sell its vaccines division, excluding vaccines for flu, to the British company for up to $7.1bn, also in cash.

Novartis said the acquisition would hand it ownership over a range of top-line cancer drugs, expanding its position in targeted therapies, and among making it a world leader in treating melanoma, or skin cancer.

The GSK oncology products going to Novartis generated about $1.6bn in sales last year.

The two companies also announced a joint venture to create “a world-leading consumer healthcare business,” focused on wellness, oral health, nutrition and skin health and expected to pull in around $10bn in annual sales.

“The geographic footprint would span all regions, with scale and commercial presence in the developed world as well as in key emerging markets, such as Brazil, China, Mexico and Russia,” Novartis said in a statement.

GSK, which will hold 63.5 percent of the newly-created business, said it would use proceeds from the deals to return £4bn ($6.7bn, 4.9bn euros) to its shareholders.

“These transactions mark a transformational moment for Novartis,” chief executive Joseph Jimenez said in the statement, insisting that the deals would help give the Swiss company a sharper focus.

“Patients will benefit from even higher levels of innovation that this focus may afford,” he said, pointing out that the agreements would also “improve our financial strength, and are expected to add to our growth rates and margins immediately”.