Brussels, 29/01/2015 (Agence Europe) - On Wednesday 28 January, the European Commission gave its conditional authorisation to the planned acquisition of the 'vaccines' division of Novartis (Switzerland) by GlaxoSmithKline (GSK, United Kingdom) and the plan to create a new entity bringing together the activities of the two companies in the consumer healthcare products sector.
Both companies are active worldwide in the research, production and supply of pharmaceutical products and consumer healthcare products.
The decision is subject to the divestiture of assets related to the activities in the two above-mentioned sectors. The Commission had concerns surrounding the fact that the operation would have removed one of GSK's competitors for the supply of vaccines and consumer healthcare products, which could have led to price increases for European consumers. GSK will acquire the global human vaccine production activity of Novartis, with the exception of the human influenza merge vaccine activity. Additionally, the two businesses will merge their global consumer healthcare product production activities in a new entity, to be controlled solely by GSK.
The Commission feared that the operation as initially envisaged would harm competition within the European Economic Area on the markets for vaccines against meningitis, diphtheria and tetanus, as well as consumer health products for smoking cessation and the treatment of cold sores, colds, flu and pain. In order to appease the fears relating to the vaccine markets, GSK has undertaken to grant a perpetual, exclusive and global licence for Nimerix (bacterial meningitis vaccine) and to sell Mencevax (also for bacterial meningitis).
The group is also undertaken to conclude distribution, supply and authorisation transfer agreements for the diphtheria and tetanus vaccines marketed by Novartis.
To deal with the Commission's concerns regarding healthcare products, GSK has undertaken to sell off several assets, such as products related to smoking cessation and those used to treat cold sores, colds, flu and pain.
In a separate decision made the same day, the Commission granted its conditional authorisation to Novartis to acquire GSK's 'oncology' activity. For its side of the bargain, Novartis has undertaken to divest two cancer treatments. (EL)