EU clears Novartis to buy GSK's oncology business with conditions

BRUSSELS, Jan 28 (Reuters) - The European Commission said onWednesday it had cleared the acquisition by Novartis of GSK oncology business subject to conditions.

The Commission, the EU's executive arm, said its approvalwas conditional on the divestment of two of Novartis's cancertreatments - LGX818, a B-Raf inhibitor, and MEK162, an MEKinhibitor.

B-Raf inhibitors and MEK inhibitors are therapies that blockcell proliferation, responsible for tumour growth andprogression, and can be used to treat a number of differentcancers.

The Commission said that it had concerns that thetransaction would have reduced competition and innovation forthese products, but that the commitments address these concerns.

The two companies agreed last April to trade more than $20billion of assets in a transaction that includes GSK buyingNovartis' vaccines business, Novartis purchasing GSK's cancerdrugs, and the two groups tying up in consumer healthcare. (Reporting By Philip Blenkinsop)