BASEL (dpa-AFX) - European Commission has cleared under the EU Merger Regulation both the proposed acquisition of the vaccines business of Novartis (NVS) by GlaxoSmithKline (GSK, GSK.L), as well as the proposed creation of a new entity combining the consumer health activities of GSK and Novartis.
The decision is conditional upon the divestiture of assets in the vaccines and consumer health businesses.
The Commission had concerns that the transaction would have eliminated an important competitor to GSK for the supply of several vaccines and consumer health products, which might lead to price increases for European consumers. The commitments address these concerns.
GSK and Novartis are active worldwide in the research, manufacturing and supply of pharmaceuticals, vaccines and consumer health products.
As a result of the transaction, GSK will acquire Novartis' global human vaccines business, except the influenza vaccines business; and GSK and Novartis will combine their global consumer health business in a new entity, which will be controlled by GSK.
The European Commission has found the proposed acquisition of the oncology business of GlaxoSmithKline of the United Kingdom by Novartis of Switzerland to be in line with the EU Merger Regulation. Both companies are active globally in the development, distribution and marketing of pharmaceutical products. The decision is conditional upon the divestment of two of Novartis' cancer treatments: LGX818, a B-Raf inhibitor, and MEK162, a MEK inhibitor. B-Raf inhibitors and MEK inhibitors are therapies that block cell proliferation, responsible for tumour growth and progression. They can be used to treat a number of different cancers.
Copyright RTT News/dpa-AFX