FTC has also approved creation of a consumer healthcare joint venture (JV) by combining GSK’s Consumer Healthcare business and Novartis’ over-the-counter (OTC) Consumer Healthcare business.
Novartis has agreed to divest Habitrol, its private label nicotine replacement therapy (NRT) transdermal patch business in the US, which was laid as a condition to secure FTC approval for the consumer healthcare JV.
The deal is part of a three-way transaction, which includes GSK buying Novartis’ vaccines business, Novartis acquiring GSK’s cancer drugs, and the two groups establishing a consumer healthcare unit.
It is reported that Novartis has reached an agreement to divest its NRT transdermal patch business to Dr Reddy’s Laboratories.
In the US, both GSK and Novartis each manufacture and market a range of consumer health care products including toothpaste, cold-and-flu remedies, indigestion remedies, skin care aids and smoking cessation products.
GSK will have a controlling 63.5% equity interest in the new JV, while Novartis will own a 36.5% share in it.
The three-part transaction which is subject to certain conditions is expected to complete during the first half of 2015.