EU approves Novartis plan to be world’s top generic drug producter
Posted by rob on May 28, 2005 under Uncategorized | 
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The European Union on Friday cleared the creation of world’s largest generic medicine producer but told Swiss drug maker Novartis AG it must shed some products in EU member states.
Under the EU-approved deal, Novartis acquired German generic drug maker Hexal and 67.7 percent of the U.S. company Eon Labs Inc.
The deal must still win clearance from the U.S. Federal Trade Commission, which submitted a request to Novartis on April 6, asking for additional information about the transaction.
(Novartis has a manufacturing plant northeast of Lincoln.)
Novartis will sell off some drugs in Poland, Germany and Denmark. The Swiss drug company must sell to a competitor Cacihexal, used to treat osteoporosis, in Poland. It also must sell an anti-rheumatic drug called Diclac in Germany and two drugs, Apurin and Allopurnol, in Denmark.
In the specific markets concerned, combining Novartis and Hexal drugs would have led to a dominant position.
Novartis purchased the privately owned Hexal along with a majority stake in New York-based Eon Labs from the Struengmann family for $8.3 billion in cash.
Novartis offered to divest products in selected markets after the EU extended its investigation of the takeover an additional two weeks.
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