GSK-Novartis three-part transaction almost complete

GlaxoSmithKline recently received clearance from the European Commission for its proposed three-part transaction with fellow drug company Novartis.

The closing of the deal with Novartis is subject to certain conditions described in GSK's shareholder circular from Nov. 20, including remaining antitrust clearances. If these conditions are approved, the transaction should be completed during the first half of 2015. GSK shareholders approved the transaction on Dec. 18.

The proposed transaction includes the acquisition of Novartis' vaccines business (excluding its influenza vaccines) and the development of a consumer health care joint venture between GSK and Novartis. GSK's oncology portfolio, related R&D activities and the exclusive rights to two pipeline AKT inhibitors would be divested to Novartis.

GSK has agreed to sell its meningitis vaccines (Nimenrix and Mencevax) on a worldwide basis and will also divest two small Novartis bivalent vaccines for diphtheria and tetanus in Italy and Germany.

In addition, GSK will sell its NiQuitin smoking-cessation products and Coldrex cold and flu product line in the European Economic Area (EEA); its Panodil pain management and Nezeril/Nasin cold and flu product line in Sweden; and Novartis' topical cold sore products in the EEA.