Novartis Unwinds Roche Ties With $20.7 Billion Stake Sale (1)

Novartis AG agreed to sell its stake in Roche Holding AG back to the rival Swiss drugmaker for $20.7 billion, ending a two-decade investment and building up a cash pile for possible acquisitions.

Novartis took advantage of record levels in Roche’s voting stock to unwind the remnants of a failed takeover attempt that began in 2001 under then-Novartis Chief Executive Officer Daniel Vasella.

The company is booking a capital gain of about $14 billion on the investment at a time when the cost of acquisitions in pharma have been soaring and drugmakers need funds to develop new treatments. CEO ...