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news.Novartis has signed an agreement to fulfil the conditions set out by the US Federal Trade Commission (FTC) to move forward with its proposed $16bn acquisition of GlaxoSmithKline’s (GSK) portfolio of cancer-treatment drugs.
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Under the terms of consent agreement, the Swiss pharmaceutical company will divest all assets related to its BRAF and MEK inhibitor drugs to Array BioPharma to settle charges that the transaction, announced in April 2014, would likely be anticompetitive.
According to a complaint, Novartis and GSK are among a small number of companies who are either developing or marketing a BRAF or MEK inhibitor, and two of only three companies marketing or developing a BRAF/MEK combination product to treat melanoma.
The BRAF and MEK inhibitors are either used separately, or in combination by physicians to treat melanoma, and are also being developed to treat a variety of other cancers.
According to the agreement, Novartis should provide transitional services to Array to ensure that development of the BRAF and MEK inhibitors continues uninterrupted and also that competition in BRAF and MEK inhibitor markets is not reduced.
The agreement is subject to public comment until 25 March, and after the due date the FTC will decide whether to make the proposed consent order final.
Image: Novartis has agreed to divest all assets related to its BRAF and MEK inhibitor drugs to Array BioPharma. Photo: courtesy of Andrew.