Last week, Swiss pharmaceutical giant Novartis agreed to completely take over American vaccine maker Chiron Corp. Novartis paid $45 a share, shelling out $5.1 billion to acquire the remaining 58% of the company. Online webcast available here.

With the acquisition occuring in the midst of the race for the development of a H5N1 flu vaccine, Novartis hope to bring Chiron vaccines into the arena. Daniel Vasella, Novartis's chief executive, said in a statement:

"Our plan is to turn around the Chiron vaccines business, which will require investments in R&D and manufacturing to increase quality and capacity."

How will the Chiron fit in with existing business segments in Novartis?

Chiron operates three business segments: the fast-growing vaccines division, blood testing and BioPharmaceuticals, which makes drugs for infectious diseases and cancer. The biopharmaceuticals business will be incorporated into Novartis's drugs unit while vaccines will become Novartis's business division, after generics and consumer health.

Meanwhile, four senior executives at Chiron Corp. are expected to reap a windfall totaling $11.2 million due to this take-over. (Source: San Francisco Business Times)