FTC greenlights GSK, Novartis joint consumer healthcare company

LONDON - GlaxoSmithKline last week announced that the Federal Trade Commission has approved GSK's acquisition of Novartis' vaccines business and the creation of a joint consumer care company between GSK and Novartis. 

 

The vote in support of the consumer healthcare transaction follows Novartis’s agreement to divest Habitrol, its private label nicotine replacement therapy transdermal patch business. This business was already to be excluded from the proposed joint venture and it has been announced previously that an agreement has been reached to divest the business to Dr Reddy’s Laboratories.  

 

The closing of the three-part transaction with Novartis remains subject to certain other conditions described in the original announcement, including remaining antitrust clearances and GSK shareholder approval. Subject to these conditions, the transaction is expected to complete during the first half of 2015.