European Commission clears three-part deal between Novartis and GSK

The European Commission has conditionally cleared three interconnected deals between Novartis and GSK: the acquisition by Novartis of GSK’s oncology business, the sale of Novartis’ vaccine business (except influenza) to GSK, and a JV between Novartis and GSK for consumer health (over-the-counter) products. CRA provided economic advice and support to Novartis on the three deals. For oncology in particular, CRA provided economic evidence showing that certain drugs were not close substitutes and that their combination would therefore not lead to anticompetitive effects. The Commission also assessed the potential impact of the transaction on pipeline drugs and considered that subject to the divestment of a pipeline combining two drugs, the transaction would not adversely affect innovation and the developments of new oncology drugs.

CRA advised Novartis during pre-notification and Phase I proceedings in front of the European Commission. In addition to these 3 interconnected deals, CRA also advised Novartis for the sale of its animal health business to Eli Lilly, which was cleared in Phase I by the European Commission in October 2014.

For more details, see the commission’s press releases: