GlaxoSmithKline (GSK) has obtained approval from the European Commission (EC) for its three-part transaction with Novartis.
The deal includes the acquisition of Novartis’s vaccines business, excluding influenza vaccines, formation of a consumer healthcare joint venture (JV) between both the firms and divestment of GSK’s marketed oncology portfolio to Novartis, as well as related R&D activities and rights to two pipeline AKT inhibitors.
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GSK agreed to divest its meningitis vaccines, Nimenrix and Mencevax, on a global basis, in relation to the vaccines acquisition.
According to GSK, these vaccines generated annual global sales of £36m in 2013, which are marketed outside of the US.
In addition, GSK will divest two small Novartis bivalent vaccines for protection against diphtheria and tetanus in Italy and Germany.
GSK also agreed to sell its NiQuitin smoking cessation products and Coldrex cold and flu products in the European Economic Area (EEA), in relation to the proposed consumer healthcare JV.
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By GlobalDataUnder the deal, the company will sell its local Panodil pain management and Nezeril/Nasin cold and flu products in Sweden and Novartis’s topical cold sore business in the EEA. These brands generated a combined revenue of around £109m in 2013.
Subject to conditions, the deal is expected to be complete in the first half of this year.
The three-part transaction was first announced in April 2014 and Novartis will pay $14.5bn to GSK and up to $1.5bn contingent on a development milestone to acquire its oncology products.
Excluding its flu business, Novartis will divest its Vaccines business to GSK for $7.1bn ($5.25bn upfront and up to $1.8bn in milestones), as well as royalties.
In November 2014, GSK received approval from the US Federal Trade Commission (FTC) for its proposed acquisition of Novartis’ vaccines business.
Earlier this month, Novartis India approved transfer of its over-the-counter division (OTC) division to GlaxoSmithKline Consumer (GSK CPL), for Rs1.97bn ($17.6m).
Image: GlaxoSmithKline headquarters in Brentford, London, England. Photo: courtesy of Maxwell Hamilton.
