Novartis provides update on regulatory developments regarding its pending acquisitions of Hexal AG and Eon Labs
Novartis announced that it has made submissions to European and US regulatory authorities seeking approval to acquire the generic pharmaceutical companies Hexal AG of Germany and Eon Labs, Inc. of the US. Novartis filed on April 4, 2005, for European Commission approval under the Merger Control Regulation for the acquisition of privately-held Hexal AG.
A submission for US regulatory approval was made on March 7, 2005. Novartis received a request on April 6, 2005, for additional information (commonly referred to as a "second request") from the US Federal Trade Commission. Such a request is not unusual in transactions of this size and nature in the pharmaceutical industry. The effect of this second request is to extend the waiting period imposed by the Hart-Scott-Rodino Antitrust Improvements Act of 1976 until 30 days after Novartis and Eon have substantially complied with the request, unless that period is extended voluntarily by the parties or terminated sooner by the FTC.
The tender process to acquire the publicly-held shares of Eon Labs is planned to start in coordination with the regulatory process.
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