Novartis Said To Draw Interest From Possible Bidders For Vaccines Unit:Bloomberg

(RTTNews) - Swiss pharma giant Novartis AG (NVS) is said to be drawing interest from possible bidders for its human-vaccines unit as talks to swap its animal-health business for assets from Healthcare giant Merck & Co., Inc. (MRK), known as MSD outside the U.S. and Canada, slow down, the Bloomberg reported citing people familiar with the matter.

The vaccines unit was initially on the table with animal health as part of the possible trade for Merck's over-the-counter drugs business. But, Novartis may now sell vaccines separately, the report said citing three of the people. The business could be valued at about $1 billion, one of the people said.

However, the report indicated that Novartis and Merck are continuing discussions about trading assets because both want to build existing businesses, the people said. Novartis also has informally talked to Drug maker Eli Lilly and Co. (LLY) and German conglomerate Bayer AG (BYR.L, BAYRY.PK, BAYZF.PK) about their interest in the animal-health business even as it continues negotiations with Merck.

The potential sale of the vaccines unit is part of Chief Executive Officer Joe Jimenez's efforts to revamp the Swiss drugmaker by focusing on core businesses. Novartis announced in November 2013 that it had agreed to divest its blood transfusion diagnostics unit to Barcelona, Spain-based Grifols SA (GRFS) for $1.675 billion.

Novartis's veterinary unit may be valued at about $4 billion including net debt, the report quoted Citigroup Inc. analysts saying in October.

Meanwhile, the report said that Merck has received expressions of interest in its consumer unit from potential suitors waiting to see if it fails to reach an agreement with Novartis, the people said. The firm hasn't actively been seeking other bidders, two of the people said.

Consumer goods giant Reckitt Benckiser Group Plc (RB.L, RBGPF.PK) would be interested in Merck's consumer drugs should Merck fail to reach a deal with Novartis, the report said quoting two of the people.