GlaxoSmithKline plc (GSK,GSK.L) issued a regulatory update relating to the major three-part transaction with Novartis AG (NVS).
The U.S. Federal TRADE Commission or "FTC" has voted to approve GSK's proposed acquisition of Novartis's vaccines business, excluding influenza vaccines, and the proposed creation of a consumer healthcare joint venture between GSK and Novartis. The vote in support of the consumer healthcare transaction follows Novartis's agreement to sell Habitrol, its private label nicotine replacement therapy or NRT transdermal patch business in the U.S. as a condition to obtaining FTC approval. 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 SA.
The transaction may be complete during the first half of 2015. 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.
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