FTC puts conditions on GSK/Novartis consumer JV

The US Federal Trade Commission has voted to approve UK pharma giant GlaxoSmithKline’s (LSE: GSK) proposed acquisition of Novartis’ vaccines business (excluding influenza vaccines) and the proposed creation of a consumer health care joint venture between GSK and Swiss peer Novartis (NOVN: VX) announced earlier this year (The Pharma Letter April 22).

Under the terms of the FTC approval of the JV, Novartis has agreed to divest Habitrol its nicotine replacement patch, to settle the agency’s charges that its consumer health care products joint venture with GSK would likely be anticompetitive. GSK currently sells its own nicotine replacement patch, Nicoderm CQ.

Under the terms of the proposed joint venture agreement, GSK will control the joint venture and contribute, among other products, its nicotine patch business. Novartis will have a 36.5% interest in the joint venture, and without the divestitures required by the proposed order, would continue to own the Habitrol business, which had US sales of more than $58 million in 2013, according to the FTC.