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Novartis AG on the Cusp of a Breakup

By Dave Williamson – Feb 4, 2014 at 10:36PM

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Novartis is up next for Big Pharma breakups.

Novartis (NVS 0.19%) looks to be the next big pharma to face a breakup. In this video, Motley Fool health-care analyst David Williamson looks at a potential repositioning of assets with Novartis, as reports still linger that the company is negotiating with Merck (MRK 0.22%) over an exchange of NVS's animal health business for Merck's over-the-counter business. Now however, there is a rumor that Eli Lilly (LLY 1.20%) could be interested in growing its own animal health business and may bid on the division.

David looks here at the three companies, why Novartis is reorganizing after a very tough quarter, and what he'll be looking for as more details of the deal become known.

David Williamson owns shares of Merck and Novartis. The Motley Fool has no position in any of the stocks mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Merck & Stock Quote
Merck &
MRK
$110.04 (0.22%) $0.24
Eli Lilly And Stock Quote
Eli Lilly And
LLY
$374.76 (1.20%) $4.43
Novartis Stock Quote
Novartis
NVS
$89.99 (0.19%) $0.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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