FTC OKs Novartis/GSK Swap

The Federal Trade Commission last week approved Novartis’ divestiture of its targeted cancer drug business, clearing the way for a portfolio swap with GlaxoSmithKline valued at $21 billion.

Under the swap, Novartis would receive GSK’s $16 billion oncology portfolio and GSK would pay $5 billion for most of Novartis’ vaccine portfolio.

The divestiture to Array BioPharma was originally agreed to in February after federal officials expressed concern that Novartis’ purchase of GSK’s oncology line would significantly narrow the field of companies working on BRAF and MEK inhibitors for various cancer indications, such as melanoma.

GSK and Novartis are both big players in the cancer treatment field. GSK reaped in $800 million from cancer drugs last year, with Mekinist (trametinib) and Tafinlar (dabrafenib) — both targeted melanoma drugs — comprising a quarter of that revenue.

Novartis’ oncology business totaled $11.8 billion, with approximately $5.6 billion coming from targeted drugs.

The deal with GSK was completed on March 2, spokeswoman Mary Anne Rhyne said.

Read the order at www.fdanews.com/04-09-15-GSKNovartisorder.pdf. — Lena Freund