Glaxo, SmithKline merger moves

Both Glaxo (GLX; LSE:GLXO) and SmithKline (SBH; LSE:SB) made moves on Thursday to satisfy antitrust concerns for their previously announced merger (see BioCentury, Jan. 24). Cantab (LSE:CTB; CNTBY) said that partner GLX will return rights to CTB's DISC-HSV prophylactic herpes vaccine that is in Phase II trials, and will pay CTB 5.75 million ($8.5 million). Earlier this month, CTB said that the prophylactic DISC-HSV collaboration could be altered following GLX's discussions with the U.S. Federal Trade Commission (FTC) regarding GLX's merger with SBH (see BioCentury, Aug. 21). CTB and GLX's collaboration to develop a therapeutic DISC-HSV vaccine remains unaltered.

Also, Novartis (SWX:NOVN; NVS) will acquire from SBH rights to Famvir famciclovir and Vectavir/Denavir penciclovir for $1.6 billion in cash. Famvir, which recorded 1999 sales of $214 million, is marketed to treat acute herpes zoster (shingles) and to treat or suppress genital herpes. Vectavir/Denavir, which posted $20 million in 1999 sales, is marketed to treat cold sores. NOVN said the product acquisitions should be earnings accretive. ...