Shares of Novartis India on Tuesday surged 20 per cent in intra-day as global pharma major Novartis will acquire GlaxoSmithKline Plc’s cancer drugs portfolio for $16 billion and sell its vaccines business in return for $7.1 billion.

Novartis India’s stock shot-up by 19.99 per cent to Rs 561.05 during the day. It later settled at Rs. 497.20, up 6.34 per cent on the BSE.

On the volume front, 6.68 lakh shares of the company changed hands at the BSE during the day.

Novartis will acquire GlaxoSmithKline plc’s (GSK) cancer drugs portfolio for $16 billion and sell its vaccines business in return for $7.1 billion, apart from forming a joint venture for the consumer healthcare business in a three-part transaction.

In separate statements, the two companies said they will combine Novartis’ over-the-counter (OTC)) division with GSK’s consumer business, creating a new world-leading consumer healthcare business with $10 billion in annual sales.

U.K.-headquartered GSK will have majority control with an equity interest of 63.5 per cent in the venture.

Novartis, based in Basel, Switzerland, agreed to acquire GSK’s oncology products for $14.5 billion and up to $1.5 billion contingent on a development milestone. Novartis would have opt-in rights to GSK’s current and future oncology R&D pipeline.

On the other hand, Novartis will divest its vaccines business, excluding flu, to GSK, for $7.1 billion plus royalties. The upfront payment is $5.25 billion and up to $1.8 billion is in milestones.