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(Bloomberg) -- GlaxoSmithKline Plc shares rose to the highest in six months after the drugmaker reported positive results from a trial combining two cancer drugs it’s selling to Novartis AG, an outcome that triggers a $1.5 billion payment from the Swiss company.
The combination of Mekinist and Tafinlar in patients with metastatic melanoma, a type of skin cancer, reduced the risk of death by 39 percent, London-based Glaxo said in a statement today.
The trial success will yield a $1.5 billion payout from Novartis, on top of the $14.5 billion the company agreed to pay for Glaxo’s cancer business, David Daley, a spokesman for the U.K. company, said by phone today. Results will be submitted to regulators for approval in the coming months, Glaxo said.
Glaxo rose as much as 2.1 percent and was up 1.5 percent at 1,524 pence as of 10:36 a.m. in London, the third-biggest increase among stocks on the FTSE 100 Index. Novartis rose 0.8 percent to 90.80 Swiss francs in Zurich.
Novartis said in April that it will buy Glaxo’s cancer unit for as much as $16 billion while selling its vaccines business, excluding the flu-shots unit, to Glaxo for $7.1 billion.
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