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IN RE GLAXO WELLCOME PLC and SMITHKLINE BEECHAM PLC Click to find out why . . .



Keywords & Phrases
CaseNo: IRGWPASBP245349, CourtCode: FED, CourtName: FEDERAL TRADE COMMISSION, UniqueCaseRef: LCD>IRGWPASBP245349, State: IN Indiana, Respondents, Commission, Agreement, Monitor Trustee, Glaxo, Assets, Market, Drugs, Merger, Trust Agreement, Herpes, Commission-approved Acquirer, Asset Sale Agreement, Kytril, Penciclovir, Famciclovir, Ceftazidime, Proposed Consent Order, Smithkline Beecham, Employees, Intellectual Property Rights, Prophylactic Herpes Vaccine, Intellectual Property, Obligations, Fda Approvals, Anticompetitive Effects, Acquirer, Confidential Business Information, Federal Trade Commission, Glaxo Wellcome , ContentID: 120247790

Case Documents
1   ORDER TO MAINTAIN ASSETS
[ see first page and extracted highlights below  ] ItemID: 118815
6 pages
PDF
2   DECISION & ORDER
[ see first page and extracted highlights below  ] ItemID: 118814
45 pages
PDF
3   COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 118813
7 pages
PDF
4   AGREEMENT CONTAINING CONSENT
[ see first page and extracted highlights below  ] ItemID: 118808
4 pages
PDF
5 2000-12 ATTACHMENT 3
[ see first page and extracted highlights below  ] ItemID: 118812
5 pages
PDF
6 2000-12 ATTACHMENT 2
[ see first page and extracted highlights below  ] ItemID: 118811
5 pages
PDF
7 2000-12 ATTACHMENT 1
[ see first page and extracted highlights below  ] ItemID: 118810
5 pages
PDF
8 2000-05 TRUST AGREEMENT
[ see first page and extracted highlights below  ] ItemID: 118816
9 pages
PDF
9 2000-01-17 ANALYSIS
[ see first page and extracted highlights below  ] ItemID: 118809
10 pages
HTML
Total Documents: 9 documents , 96 pages
Price: $ 59.95


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1 . ORDER TO MAINTAIN ASSETS

EXTRACTED KEY WORDS
ASSETS
MONITOR TRUSTEE
COMMISSION
CONSENT
CONSENT AGREEMENT
COMPLIANCE
REASON
COMPLAINT
ACT
APPOINT
BUSINESS
PURSUANT
COUNSEL
PROVISIONS
DIVESTITURE
PARAGRAPH
EXPENSES
AUTHORITY
REQUEST
DUTIES
LIABILITIES
FEDERAL TRADE COMMISSION
THEREAFTER
VIOLATIONS
EXECUTE
JURISDICTIONAL FACTS
LAWS
MATTER
UNITED KINGDOM
                               UNITED STATES OF AMERICA
                        BEFORE FEDERAL TRADE COMMISSION


COMMISSIONERS:                 Robert Pitofsky, Chairman
                               Sheila F. Anthony
                               Mozelle W. Thompson
                               Orson Swindle
                               Thomas B. Leary

__________________________________ )
  In the Matter of                           ))
        Glaxo Wellcome plc,                  )
    a corporation,                           ))
                and                          ))      Docket No. C-3990
        SmithKline Beecham plc,              )
    a corporation.                           ))
__________________________________ )


                               ORDER TO MAINTAIN ASSETS

        The Federal Trade Commission ("Commission") having initiated an investigation of the
proposed merger between Respondent Glaxo Wellcome plc ("Glaxo") and Respondent
SmithKline Beecham plc ("SB"), hereinafter referred to as "Respondents," and the Respondents
having been furnished thereafter with a copy of a draft of Complaint which the Bureau of
Competition presented to the Commission for its consideration and which, if issued by the
Commission, would charge the Respondents with violations of Section 7 of the Clayton Act, as
amended, 15 U.S.C. § 18, and Section 5 of the Federal Trade Commission Act, as amended, 15
U.S.C. § 45; and

        Respondents, their attorneys, and counsel for the Commission having thereafter executed
an Agreement Containing Consent Orders ("Consent Agreement"), containing the proposed
Decision and Order, an admission by the Respondents of all of the jurisdictional facts set forth in
the aforesaid draft of Complaint, a statement that the signing of said Consent Agreement is for
settlement purposes only and does not constitute an admission by the Respondents that the law
has been violated as alleged in such Complaint, or that the facts as alleged in such Complaint,



other than the jurisdictional facts, are true, and waivers and other provisions as required by the
Commission's Rules; and

          The Commission having thereafter considered the matter and having determined that it has
reason to believe that Respondents have violated the said Acts, and that a Complaint should issue
stating its charges in that respect, and having determined to accept the executed Consent
Agreement and to place the Consent Agreement on the public record for a period of thirty (30)
days, the Commission hereby issues its Complaint, makes the following jurisdictional findings and
issues this Order to Maintain Assets:
SNIPPETS:
  • BEFORE FEDERAL TRADE COMMISSION
  • Respondents, their attorneys, and counsel for the Commission having thereafter executed an that the facts as alleged in such Complaint,
  • The Commission having thereafter considered the matter and having determined that it has Assets:
  • virtue of the laws of the United Kingdom, with its office and principal place of business
  • IT IS ORDERED that, as used in this Order to Maintain Assets, the definitions used in the
  • Respondents shall adhere to and abide by the Divestiture Agreements incorporated by reference
  • At any time after the Commission issues this Order to Maintain Assets, the Commission may
  • Respondents shall consent to the following terms and conditions regarding the powers, duties,
  • The Monitor Trustee shall have the power and authority to monitor Respondents'
  • execute a trust agreement that, subject to the prior approval of the Commission,
  • Monitor Trustee to monitor Respondents' compliance with the terms of this Order
  • Respondents' compliance with the provisions of this Order to Maintain Assets.
  • reasonable request of the Monitor Trustee.
  • Trustee's duties and responsibilities.
  • harmless against any losses, claims, damages, liabilities or expenses arising out of,
  • all reasonable fees of counsel and other expenses incurred in connection with the
  • except to the extent that such liabilities, losses damages, claims, or expenses result
  • manner as provided in Paragraph III.A.
  • X.A. of the Decision and Order in this matter, and/or as Divestiture Trusteepursuant to

  • 2 . DECISION & ORDER

    EXTRACTED KEY WORDS
    COMMISSION
    AGREEMENT
    GLAXO
    ASSETS
    COMMISSION-APPROVED ACQUIRER
    ASSET SALE AGREEMENT
    KYTRIL
    PENCICLOVIR
    FAMCICLOVIR
    EMPLOYEES
    MERGER
    SMITHKLINE BEECHAM
    CONFIDENTIAL BUSINESS INFORMATION
    DIVESTITURE AGREEMENT
    SMITHKLINE BEECHAM PLC
    FINISHED GOODS
    GLAXO WELLCOME
    FEDERAL TRADE COMMISSION
    COMPETITION
    MANUFACTURING
    FDA
    TAZICEF ASSETS
    DRUG MASTER FILES
    SUPPLY AGREEMENT
    JURISDICTION
    EMPLOYMENT
    INTELLECTUAL PROPERTY
    PRODUCT REGISTRATIONS
    PRODUCT TRADEMARKS
    
                                                                                          001-0088
    
                                      UNITED STATES OF AMERICA
                                  BEFORE FEDERAL TRADE COMMISSION
    
    COMMISSIONERS:                   Robert Pitofsky, Chairman
                                     Sheila F. Anthony
                                     Mozelle W. Thompson
                                     Orson Swindle
                                     Thomas B. Leary
    
    __________________________________
                                                   )
      In the Matter of                             )
                                                   )
            Glaxo Wellcome plc,                    )
        a corporation,                             )
                                                   )
                     and                           )
                                                   )              Docket No. C-3990
            SmithKline Beecham plc,         )                     DECISION AND ORDER
        a corporation.                             )
                                                   )
    __________________________________)
    
    
    
    
            The Federal Trade Commission ("Commission") having initiated an investigation of the
    proposed merger of Respondent Glaxo Wellcome plc ("Glaxo") and Respondent SmithKline
    Beecham plc ("SB"), hereinafter referred to as "Respondents," and  Respondents having been
    furnished thereafter with a copy of a draft of Complaint that the Bureau of Competition presented
    to the Commission for its consideration and which, if issued by the Commission, would charge
    Respondents with violations of Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18, and
    Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C. § 45; and
    
            Respondents, their attorneys, and counsel for the Commission having thereafter executed
    an Agreement Containing Consent Orders ("Consent Agreement"), containing an admission by
    Respondents of all the jurisdictional facts set forth in the aforesaid draft of Complaint, a
    that the signing of said Consent Agreement is for settlement purposes only and does not
    constitute an admission by Respondents that the law has been violated as alleged in such
    Complaint, or that the facts as alleged in such Complaint, other than jurisdictional facts, are
    and waivers and other provisions as required by the Commission's Rules; and
    
    
    
           The Commission having thereafter considered the matter and having determined that it had
    reason to believe that Respondents have violated the said Acts, and that a Complaint should issue
    stating its charges in that respect, and having thereupon issued its Complaint and an Order to
    
    SNIPPETS:
  • Respondent Glaxo is a corporation organized, existing and doing business under and by virtue
  • The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of
  • "Glaxo" means Glaxo Wellcome plc, its directors, officers, employees, agents,
  • "SB" means SmithKline Beecham plc, its directors, officers, employees, agents,
  • "Merger" means the proposed merger of Glaxo and SB by means of a scheme of arrangement
  • W. "Closing Date" means the date on which Respondents and a Commission-approved Acquirer
  • Y. "Confidential Business Information" means all information owned by Respondents that is not
  • Z. "Contract Manufacture" means the manufacture of a Product supplied pursuant to a
  • "Denavir" means any Product containing the drug compound Penciclovir, any of its constituent
  • "DISC-HSV Prophylactic Vaccine Assets" means all Product Intellectual Property relating to
  • "Divestiture Agreement" means each of the following agreements individually, or any agreement
  • Famciclovir and Penciclovir Supply Agreement, the DISC-HSV Amended Development and Licence
  • "Domain Name" shall not include any trademark or service mark rights to such domain names
  • "Drug Master Files" means the information submitted to the FDA as described in 21 C.F.R. Part
  • the Product Registrations;
  • records and files that relate to the following: Product Manufacturing
  • "Finished Goods" means Famciclovir, Penciclovir and Kytril packaged and ready for
  • "Tazicef Assets" means all of Respondents' rights, title and interest in and to all assets
  • F. Respondents shall provide the Commission-approved Acquirer with the opportunity to enter
  • L. For the periods as set forth in this Paragraph II. L. (collectively, the prior to the Closing Date.

  • 3 . COMPLAINT

    EXTRACTED KEY WORDS
    TREATMENT
    HERPES
    MARKET
    GLAXO
    ANTIVIRALS
    SALE
    HERPES VACCINES
    PRESCRIPTION
    COMMISSION
    ACT
    TOPOISOMERASE
    INHIBITORS
    MIGRAINE HEADACHES
    HHI
    MERGER
    UNITED STATES
    CEFTAZIDIME
    SECOND GENERATION
    PROPHYLACTIC HERPES
    CANCER
    TRIPTAN DRUGS
    TOPICAL PRESCRIPTION
    IBS
    OTC H-2 BLOCKERS
    MERGED ENTITY
    PRICES
    ANTIEMETIC DRUGS
    PHARMACEUTICALS
    INTRAVENOUS ANTIVIRAL DRUGS
    
                                      UNITED STATES OF AMERICA
                                  BEFORE FEDERAL TRADE COMMISSION
    
    
    __________________________________
                                                   )
      In the Matter of                             )
                                                   )
            Glaxo Wellcome plc,                    )
        a corporation,                             )
                                                   )
                     and                           )
                                                   )              Docket No. C-3990
            SmithKline Beecham plc,         )
        a corporation.                             )
                                                   )
    __________________________________)
    
    
    
                                                COMPLAINT
    
            The Federal Trade Commission ("Commission"), having reason to believe that
    Respondent Glaxo Wellcome plc ("Glaxo"), a corporation subject to the jurisdiction of the
    Commission, has agreed to merge with Respondent SmithKline Beecham plc ("SB"), a
    corporation subject to the jurisdiction of the Commission, in violation of Section 7 of the Clayton
    Act, as amended, 15 U.S.C. § 18, and Section 5 of the Federal Trade Commission Act, as
    amended, 15 U.S.C. § 45, and it appearing to the Commission that a proceeding in respect thereof
    would be in the public interest, hereby issues its Complaint, stating its charges as follows:
    
    
                                             I.  DEFINITIONS
    
            1.       "Commission" means the Federal Trade Commission.
    
            2.       "FDA" means the United States Food and Drug Administration.
    
            3.        "Ceftazidime" means any product that contains any form or formulation of the
    compound ceftazidime, any of its constituent elements, active ingredients or intermediaries, and
    all rights relating to the research, development, manufacture and sale of any such Product.
    Ceftazidime is a semisynthetic, broad-spectrum antibacterial derived from cephaloridine and used
    especially for pseudomonas and other gram-negative infections in hospitalized patients.
    
    
    
            4.      "5HT-3 antiemetic drug" means any 5HT-3 receptor antagonist prescription
    pharmaceutical compound indicated for the prevention and treatment of nausea and vomiting
    associated with medical treatment, including chemotherapy, radiation therapy, or surgery.
    
    
    SNIPPETS:
  • The Federal Trade Commission, having reason to believe that Respondent Glaxo Wellcome plc, a reof would be in the public interest, hereby issues its Complaint, stating its charges as follows:
  • compound ceftazidime, any of its constituent elements, active ingredients or intermediaries,
  • Ceftazidime is a semisynthetic, broad-spectrum antibacterial derived from cephaloridine and
  • "5HT-3 antiemetic drug" means any 5HT-3 receptor antagonist prescription pharmaceutical
  • "Second generation oral and intravenous antiviral drugs for the treatment of herpes" means
  • "Prophylactic herpes vaccines" means a vaccine used to prevent genital infection by HSV-1 and
  • "Topoisomerase I inhibitors" means prescription pharmaceuticals of the topoisomerase I
  • "Drugs for the treatment of IBS" means drugs for the treatment of irritable bowel syndrome,
  • "OTC H-2 blockers" means over-the-counter versions of histamine 2 blockers for acid relief.
  • "Triptan drugs for the treatment of migraine headaches" means drugs of the triptan chemical
  • "Topical prescription herpes antivirals" means prescription topical antiviral medications
  • Respondent Glaxo is a corporation organized, existing and doing business under and by virtue
  • herpes vaccines, OTC H-2 blockers, Topoisomerase I inhibitors, Drugs for the treatment of
  • SB, among other things, is engaged in the research, development, manufacturing and sale of
  • On January 17, 2000, the Boards of Glaxo and SB announced agreement to the terms of a merger
  • For the purposes of this Complaint, the United States is the relevant geographic area in
  • The market for 5HT-3 antiemetic drugs is highly concentrated as measured by the
  • As a result of the Merger, Glaxo SmithKline would have a 92% percent share of the market, and
  • Glaxo has been developing a vaccine for HSV infection in conjunction with Cantab
  • by increasing the likelihood that the merged entity would increase prices

  • 4 . AGREEMENT CONTAINING CONSENT

    EXTRACTED KEY WORDS
    CONSENT AGREEMENT
    ASSETS
    COMMISSION
    COMPLAINT
    GLAXO WELLCOME
    LAW
    PROCEEDING
    ACCEPTANCE
    PLC
    RELIEF
    BUSINESS
    FACTS
    DRAFT
    CONTEMPLATES
    COMPLIANCE
    PUBLIC RECORD
    SERVE
    SMITHKLINE BEECHAM
    DIVEST
    HEREBY
    COUNSEL
    UNITED KINGDOM
    PURSUANT
    REPORTS
    MANNER
    MIDDLESEX
    ENGLAND
    JURISDICTIONAL FACTS
    THEREAFTER
    
                                                      UNITED STATES OF AMERICA
                                         BEFORE FEDERAL TRADE COMMISSION
    
    __________________________________
                                                                      )
      In the Matter of                                              )
                                                                      )
               Glaxo Wellcome, PLC,                                   )
        a corporation,                                                )
                                                                      )
                           and                                        )
                                                                      )        File No. 001 0088
               SmithKline Beecham, PLC,       )
        a corporation.                                                )
                                                                         )
    
    
                                   AGREEMENT CONTAINING CONSENT ORDERS
    
            The Federal Trade Commission ("Commission"), having initiated an investigation of the
    proposed merger between Glaxo Wellcome, PLC, ("Glaxo") and SmithKline Beecham, PLC,
    ("SKB"), and it now appearing that Glaxo and Warner, hereinafter sometimes referred to as
    "Proposed Respondents," are willing to enter into this Agreement Containing Consent Orders
    ("Consent Agreement") to divest certain assets and providing for other relief:
    
            IT IS HEREBY AGREED by and between Proposed Respondents, by their duly
    authorized officers and attorneys, and counsel for the Commission that:
    
    1.      Proposed respondent Glaxo is a corporation organized, existing and doing business under
            and by virtue of the laws of the United Kingdom, with its office and principal place of
            business located at Glaxo Wellcome House, Berkeley Avenue, Greenford, Middlesex, UB6
            ONN, England.
    
    2.      Proposed respondent SKB is a corporation organized, existing and doing business under and
            by virtue of the laws of the United Kingdom, with its office and principal place of business
            located at 3 New Horizons Court, Brentford, Middlesex, TW8 9EP, England.
    
    3.      Proposed Respondents admit all the jurisdictional facts set forth in the draft of Complaint
            here attached.
    
    
    
    Agreement Containing Consent Orders                                                     Page  2 of 4
    
    4.    Proposed Respondents waive:
    
              a. any further procedural steps;
    
              b. the requirement that the Commission's Order to Maintain Assets and Decision and
    
    SNIPPETS:
  • SmithKline Beecham, PLC,)
  • The Federal Trade Commission, having initiated an investigation of the proposed merger
  • IT IS HEREBY AGREED by and between Proposed Respondents, by their duly authorized officers
  • Proposed respondent Glaxo is a corporation organized, existing and doing business under and
  • Because there may be interim competitive harm, and because divestiture or other relief
  • Proposed Respondents shall submit an initial report within ten days of the date that they Order.
  • Such reports will not become part of the public record unless and until the Consent Agreement
  • If this Consent Agreement is accepted by the Commission, it, together with the Complaint
  • The Commission thereafter may either withdraw its acceptance of this Consent Agreement and so
  • This Consent Agreement is for settlement purposes only and does not constitute an admission
  • This Consent Agreement contemplates that, if it is accepted by the Commission, the Commission
  • If such acceptance is not subsequently withdrawn by the Commission pursuant to the provisions ed or set aside in the same manner and within the same time provided by statute for other orders.
  • Proposed Respondents understand that once the Decision and Order and Order to Maintain Assets

  • 5 . ATTACHMENT 3

    EXTRACTED KEY WORDS
    AGREEMENT
    ACQUIRER
    FDA APPROVALS
    COMMISSION
    RESPONDENTS
    UNITED STATES
    PLANS
    REPORTS
    PARTIES
    OBLIGATIONS
    TRUST AGREEMENT
    BUSINESS
    REASON
    PURPOSE
    CONFIDENTIALITY
    APPROVAL ASSETS
    RELATING
    REQUEST
    MEETINGS
    DISCLOSE
    EMPLOYEE
    RECIPIENT
    CONSENT AGREEMENT
    EXECUTE
    PRIOR
    THIRD PARTY
    PREPARATION
    ORDINARY COURSE
    TIMELY MANNER
    
                                               ATTACHMENT 3
    
           This Agreement entered into this ______ day of  December 2000 between FRANCIS J.
    CIVILLE (the "Monitor Trustee") and ABBOTT LABORATORIES (the "Acquirer"), referred to
    herein collectively as "the parties," provides as follows:
    
           WHEREAS the Federal Trade Commission (the "Commission") has accepted or will
    shortly accept for Public Comment an Agreement Containing Consent Orders ("Consent
    Agreement") with SmithKline Beecham plc ("SB") and Glaxo Wellcome plc ("GW") (where
    "Respondents," as used herein, means SB and GW, individually and collectively), that contains an
    Order to Maintain Assets and a Decision and Order, collectively hereinafter referred to as the
    "Orders," which provide for, among other things, the appointment of a Monitor Trustee to ensure
    that Respondents fully perform their obligations with respect to the Approval Assets (as defined in
    the related Trust Agreement) under the Orders, and, at Respondents' expense, to monitor the
    efforts of certain of the Acquirers of the Approval Assets to obtain all FDA approvals necessary
    to manufacture any Product included within the Approval Assets in or into the United States ("the
    Relevant Product(s)") in a diligent manner,
    
           WHEREAS, the Orders further provide that Respondents shall execute a trust agreement
    ("Trust Agreement"), subject to the prior approval of the Commission, and confer all the rights,
    authority and powers necessary to permit the Monitor Trustee to monitor the Respondents'
    compliance with the terms of the Order and certain activities of the Acquirer, as may be
    determined by the Commission, related to the transfer of the Relevant Products; and
    
           WHEREAS, the parties to this Agreement intend to be legally bound;
    
           NOW, THEREFORE, the parties agree as follows:
    
    1. The Acquirer shall:
    
       a. Provide the following to the Monitor Trustee no later than ninety (90) days after the
           Closing Date:
    
           i. the Acquirer's plan to obtain all necessary FDA approvals to manufacture the Relevant
               Product(s) divested pursuant to the Orders; and
    
           ii. the Acquirer's annual production forecasts and planned activities relating to
               manufacture with respect to the Relevant Product(s), including any such activities
               contracted to a third party.
    
       b. To the extent the following are prepared in the ordinary course of Acquirer's business,
           provide the following to the Monitor Trustee in a timely manner but no later than thirty
           (30) days after the preparation of the document:
    
    
                                                     -1-
    
    
    
    
    SNIPPETS:
  • This Agreement entered into this
  • day of December 2000 between FRANCIS J. CIVILLE (the "Monitor Trustee") and ABBOTT
  • WHEREAS the Federal Trade Commission has accepted or will shortly accept for Public Comment fully perform their obligations with respect to the Approval Assets (as defined in the related
  • the parties to this Agreement intend to be legally bound;
  • The Acquirer shall:
  • the Acquirer's annual production forecasts and planned activities relating to manufacture
  • To the extent the following are prepared in the ordinary course of Acquirer's business,
  • days after the preparation of the document:
  • reports that include the annual forecasts and actual quarterly sales of the Relevant
  • reports that discuss the Acquirer's plans or efforts to sell the Relevant Productin or into
  • such additional information as the Monitor Trustee, the Commission, or staff of the
  • the Acquirer has voluntarily ceased the sale in the United States of the Relevant Productfor
  • Provide the Monitor Trustee promptly with a copy of any meeting minutes, action plans,
  • provide the Monitor Trustee with direct and sufficient access to Acquirer's representative
  • Provide the Monitor Trustee with timely advanced notification of significant meetings
  • maintain the confidentiality, for a period of five years after the termination of this
  • ensure that, if he retains any employee, agent, consultant or other third party to assist him
  • For the purposes of this Agreement, information shall not be considered confidential or pient.
  • Nothing in this Agreement shall require the Acquirer to disclose any material or information
  • As used in this Agreement, all capitalized terms used herein and not specifically defined

  • 6 . ATTACHMENT 2

    EXTRACTED KEY WORDS
    AGREEMENT
    ACQUIRER
    FDA APPROVALS
    COMMISSION
    RESPONDENTS
    UNITED STATES
    PLANS
    SELL
    BUSINESS
    PARTIES
    OBLIGATIONS
    TRUST AGREEMENT
    REPORTS
    REASON
    PURPOSE
    CONFIDENTIALITY
    APPROVAL ASSETS
    RELATING
    REQUEST
    MEETINGS
    DISCLOSE
    EMPLOYEE
    CONSENT AGREEMENT
    EXECUTE
    PRIOR
    MANUFACTURING
    THIRD PARTY
    ORDINARY COURSE
    TIMELY MANNER
    
                                            ATTACHMENT 2
    
           This Agreement entered into this ______ day of  December 2000 between FRANCIS J.
    CIVILLE (the "Monitor Trustee") and NOVARTIS PHARMACEUTICALS CORPORATION
    (the "Acquirer"), referred to herein collectively as "the parties," provides as follows:
    
           WHEREAS the Federal Trade Commission (the "Commission") has accepted or will
    shortly accept for Public Comment an Agreement Containing Consent Orders ("Consent
    Agreement") with SmithKline Beecham plc ("SB") and Glaxo Wellcome plc ("GW") (where
    "Respondents," as used herein, means SB and GW, individually and collectively), that contains an
    Order to Maintain Assets and a Decision and Order, collectively hereinafter referred to as the
    "Orders," which provide for, among other things, the appointment of a Monitor Trustee to ensure
    that Respondents fully perform their obligations with respect to the Approval Assets (as defined in
    the related Trust Agreement) under the Orders, and, at Respondents' expense, to monitor the
    efforts of certain of the Acquirers of the Approval Assets to obtain all FDA approvals necessary
    to manufacture and sell any Product included within the Approval Assets in or into the United
    States ("Relevant Product(s)") in a diligent manner,
    
           WHEREAS, the Orders further provide that Respondents shall execute a trust agreement
    ("Trust Agreement"), subject to the prior approval of the Commission, and confer all the rights,
    authority and powers necessary to permit the Monitor Trustee to monitor the Respondents'
    compliance with the terms of the Order and certain activities of the Acquirer, as may be
    determined by the Commission, related to the transfer of the Relevant Products; and
    
           WHEREAS, the parties to this Agreement intend to be legally bound;
    
           NOW, THEREFORE, the parties agree as follows:
    
    1. The Acquirer shall:
    
       a. Provide the following to the Monitor Trustee no later than sixty (60) days after the
           Closing Date:
    
           i. the Acquirer's plan to obtain all necessary FDA approvals to manufacture and sell the
               Relevant Product(s) divested pursuant to the Orders; and
    
           ii. the Acquirer's business plan for developing, manufacturing and marketing of the
               Relevant Product(s) in or into the United States, together with any timetables and
               projections, including but not limited to, the Acquirer's annual production forecasts
               and planned activities relating to manufacture with respect to the Relevant Product(s),
               including any such activities contracted to a third party.
    
       b. To the extent the following are prepared in the ordinary course of Acquirer's business,
    
    
                                                     -1-
    
    
    
    
    SNIPPETS:
  • This Agreement entered into this
  • day of December 2000 between FRANCIS J. CIVILLE (the "Monitor Trustee") and NOVARTIS
  • WHEREAS the Federal Trade Commission has accepted or will shortly accept for Public Comment fully perform their obligations with respect to the Approval Assets (as defined in the related
  • the parties to this Agreement intend to be legally bound;
  • The Acquirer shall:
  • the Acquirer's business plan for developing, manufacturing and marketing of the Relevant
  • To the extent the following are prepared in the ordinary course of Acquirer's business,
  • provide the following to the Monitor Trustee in a timely manner but no less frequently than
  • reports that discuss the Acquirer's plans or efforts to sell the Relevant Productin or into
  • such additional information as the Monitor Trustee, the Commission, or staff of the
  • the Acquirer has voluntarily ceased the sale in the United States of the Relevant Productfor
  • Provide the Monitor Trustee promptly with a copy of any meeting minutes, action plans,
  • arrange meetings or discussions, at a reasonable location designated by the Acquirer, and
  • provide the Monitor Trustee with direct and sufficient access to Acquirer's representative
  • Provide the Monitor Trustee with timely advanced notification of significant meetings
  • maintain the confidentiality, for a period of five years after the termination of this
  • ensure that, if he retains any employee, agent, consultant or other third party to assist him
  • Nothing in this Agreement shall require the Acquirer to disclose any material or information
  • As used in this Agreement, all capitalized terms used herein and not specifically defined

  • 7 . ATTACHMENT 1

    EXTRACTED KEY WORDS
    AGREEMENT
    ACQUIRER
    FDA APPROVALS
    COMMISSION
    SELL
    RESPONDENTS
    UNITED STATES
    PLANS
    BUSINESS
    PARTIES
    OBLIGATIONS
    TRUST AGREEMENT
    REPORTS
    REASON
    PURPOSE
    CONFIDENTIALITY
    APPROVAL ASSETS
    RELATING
    REQUEST
    MEETINGS
    DISCLOSE
    EMPLOYEE
    EXECUTE
    PRIOR
    MANUFACTURING
    THIRD PARTY
    PREPARATION
    ORDINARY COURSE
    TIMELY MANNER
    
                                            ATTACHMENT 1
    
           This Agreement entered into this _______ day of  December 2000 between FRANCIS J.
    CIVILLE (the "Monitor Trustee") and HOFFMANN-LA ROCHE INC.(the "Acquirer"), referred
    to herein collectively as "the parties," provides as follows:
    
           WHEREAS the Federal Trade Commission (the "Commission") has accepted or will
    shortly accept for Public Comment an Agreement Containing Consent Orders ("Consent
    Agreement") with SmithKline Beecham plc ("SB") and Glaxo Wellcome plc ("GW") (where
    "Respondents," as used herein, means SB and GW, individually and collectively), that contains an
    Order to Maintain Assets and a Decision and Order, collectively hereinafter referred to as the
    "Orders," which provide for, among other things, the appointment of a Monitor Trustee to ensure
    that Respondents fully perform their obligations with respect to the Approval Assets (as defined in
    the related Trust Agreement) under the Orders, and, at Respondents' expense, to monitor the
    efforts of certain of the Acquirers of the Approval Assets to obtain all FDA approvals necessary
    to manufacture and sell any Product included within the Approval Assets in or into the United
    States ("Relevant Product(s)") in a diligent manner,
    
           WHEREAS, the Orders further provide that Respondents shall execute a trust agreement
    ("Trust Agreement"), subject to the prior approval of the Commission, and confer all the rights,
    authority and powers necessary to permit the Monitor Trustee to monitor the Respondents'
    compliance with the terms of the Order and certain activities of the Acquirer, as may be
    determined by the Commission, related to the transfer of the Relevant Products; and
    
           WHEREAS, the parties to this Agreement intend to be legally bound;
    
           NOW, THEREFORE, the parties agree as follows:
    
    1. The Acquirer shall:
    
       a. Provide the following to the Monitor Trustee no later than sixty (60) days after the
           Closing Date:
    
           i. the Acquirer's plan to obtain all necessary FDA approvals to manufacture and sell the
               Relevant Product(s) divested pursuant to the Orders; and
    
           ii. the Acquirer's business plan for developing, manufacturing and marketing of the
               Relevant Product(s) in or into the United States, together with any timetables and
               projections, including but not limited to, the Acquirer's annual production forecasts
               and planned activities relating to manufacture with respect to the Relevant Product(s),
               including any such activities contracted to a third party.
    
       b. To the extent the following are prepared in the ordinary course of Acquirer's business,
    
    
                                                     -1-
    
    
    
    
    SNIPPETS:
  • This Agreement entered into this
  • day of December 2000 between FRANCIS J. CIVILLE (the "Monitor Trustee") and HOFFMANN-LA ROCHE
  • WHEREAS the Federal Trade Commission has accepted or will shortly accept for Public Comment fully perform their obligations with respect to the Approval Assets (as defined in the related
  • the parties to this Agreement intend to be legally bound;
  • The Acquirer shall:
  • the Acquirer's business plan for developing, manufacturing and marketing of the Relevant
  • To the extent the following are prepared in the ordinary course of Acquirer's business,
  • days after the preparation of the document:
  • reports that discuss the Acquirer's plans or efforts to sell the Relevant Productin or into
  • such additional information as the Monitor Trustee, the Commission, or staff of the
  • the Acquirer has voluntarily ceased the sale in the United States of the Relevant Productfor
  • Provide the Monitor Trustee promptly with a copy of any meeting minutes, action plans,
  • arrange meetings or discussions, at a reasonable location designated by the Acquirer, and
  • provide the Monitor Trustee with direct and sufficient access to Acquirer's representative
  • Provide the Monitor Trustee with timely advanced notification of significant meetings
  • g. Deliver all reports and plans as described herein in written hard copy form in a timely
  • maintain the confidentiality, for a period of five years after the termination of this
  • ensure that, if he retains any employee, agent, consultant or other third party to assist him
  • Nothing in this Agreement shall require the Acquirer to disclose any material or information

  • 8 . TRUST AGREEMENT

    EXTRACTED KEY WORDS
    RESPONDENTS
    TRUST AGREEMENT
    COMMISSION
    ASSETS
    PURSUANT
    OBLIGATIONS
    APPROVAL ASSETS
    CONSENT
    DIVESTITURE
    COMPLIANCE
    FRANCIS
    CIVILLE
    GLAXO WELLCOME PLC
    COMMISSION-APPROVED ACQUIRERS
    RESPONSIBILITIES
    UNITED STATES
    APPOINTMENT
    CONFIDENTIALITY
    FDA APPROVALS
    SMITHKLINE BEECHAM
    FEDERAL TRADE COMMISSION
    ASSETS PENDING
    INVENTORY
    PARAGRAPHS
    ORAL COMMUNICATION
    STATUTORY LAW
    DISAGREEMENT
    LIABILITY
    BINDING ARBITRATION
    
                                         TRUST AGREEMENT
    
           This Trust Agreement ("Trust Agreement") entered into this ______day of
    _______________________ by and among Francis J. Civille, SmithKline Beecham plc ("SB"),
    and Glaxo Wellcome plc ("GW") (where "Respondents," as used herein, means SB and GW,
    individually and collectively), provides as follows:
    
           WHEREAS, the United States Federal Trade Commission (the "Commission") has
    accepted or will shortly accept for Public Comment an Agreement Containing Consent Orders
    incorporating a Decision and Order ("Decision and Order") and an Order to Maintain Assets, with
    SB and GW  (collectively, the "Orders"), which, among other things, require Respondents to
    divest or transfer certain defined assets and maintain those assets pending such divestiture or
    transfer, and provide for the appointment of one or more Monitor Trustees to ensure that
    Respondents comply with their obligations under the Orders;
    
           WHEREAS, the Commission may appoint Francis J. Civille as such trustee (the "Monitor
    Trustee") pursuant to the Orders to monitor Respondents' compliance with the terms of the
    Consent Agreement and Orders and with each of the Divestiture Agreements referenced in the
    Orders, and to monitor the efforts of certain of the Commission-approved Acquirers (as defined in
    the Orders) to obtain all necessary FDA approvals, as applicable, and Francis J. Civille has
    consented to such appointment;
    
           WHEREAS, the Orders further provide or will provide that Respondents shall execute a
    trust agreement, subject to the prior approval of the Commission, conferring all the rights, powers
    and authority necessary to permit the Monitor Trustee to carry out such duties and responsibilities
    pursuant to the Orders;
    
           WHEREAS, this Trust Agreement, although executed by the Monitor Trustee and SB and
    GW is not effective for any purpose, including but not limited to imposing rights and
    responsibilities on Respondents or the Monitor Trustee under the Orders, until it has been
    approved by the Commission; and
    
           WHEREAS, the parties to this Trust Agreement intend to be legally bound;
    
        NOW, THEREFORE, the parties agree as follows:
    
    1. Capitalized terms used herein and not specifically defined herein shall have the respective
        definitions given to them in the Consent Agreement and the Orders.  The term "Trust Assets"
        means the assets identified in Paragraphs II.A., III.A., IV.A., V.A., VI.A., VII.A., VIII.A.,
        and IX.A. of the Decision and Order.  The term "Approval Assets" means the Kytril Assets,
        the Famciclovir and Penciclovir Assets, and the Tazicef Assets.
    
    2. The Monitor Trustee shall have all of the powers and responsibilities conferred upon the
    
    
                                                     1
    
    
    
    
    SNIPPETS:
  • This Trust Agreement entered into this ______day of
  • by and among Francis J. Civille, SmithKline Beecham plc, and Glaxo Wellcome plc, provides as
  • WHEREAS, the United States Federal Trade Commission has accepted or will shortly accept for r obligations under the Orders;
  • WHEREAS, the Commission may appoint Francis J. Civille as such trustee pursuant to the Orders
  • WHEREAS, the Orders further provide or will provide that Respondents shall execute a trust
  • The term "Trust Assets" means the assets identified in Paragraphs II.A., III.A., IV.A., V.A.,
  • The term "Approval Assets" means the Kytril Assets, the Famciclovir and Penciclovir Assets,
  • Respondents hereby agree that, no later than three Business Days after the Commission
  • a complete inventory of all existing FDA approvals and pending FDA approvals
  • Respondents' compliance with the Orders,
  • a complete inventory of all Patents included in the Trust Assets related to the manufacture
  • Respondents shall promptly notify the Monitor Trustee of any significant written or oral
  • The Monitor Trustee shall maintain the confidentiality of all information provided to the
  • Respondents shall indemnify the Monitor Trustee and any subcontractor and their respective es incurred in connection with the reasonable preparation for, or defense of any claim, whether or
  • The Monitor Trustee shall have no liability to Respondents for the Monitor Trustee's
  • In the event of a disagreement or dispute between Respondents and the Monitor Trustee
  • In the case of any disagreement or dispute between Respondents and the Monitor Trustee not
  • SmithKline Beecham Corporation

  • 9 . ANALYSIS

    EXTRACTED KEY WORDS
    GLAXO
    DRUGS
    HERPES
    MERGER
    PROPOSED CONSENT ORDER
    CEFTAZIDIME
    INTELLECTUAL PROPERTY RIGHTS
    PROPHYLACTIC HERPES VACCINE
    AGREEMENT
    ANTICOMPETITIVE EFFECTS
    SMITHKLINE
    INTELLECTUAL PROPERTY
    ANTIEMETIC DRUGS
    NOVARTIS
    DENAVIR
    PHARMACEUTICALS
    WORLDWIDE RIGHTS
    INTELLECTUAL PROPERTY RELATING
    ABBOTT LABORATORIES
    OTC H-2 BLOCKER
    COMMISSION
    BASE ACTIVE INGREDIENT
    ORAL HERPES
    H-2 BLOCKER
    DEVELOPMENT EFFORTS
    DISC TECHNOLOGY
    IBS
    MIGRAINE HEADACHES
    COMPETITION
    
         _________________________________________________________________
    
                                    ANALYSIS OF
                    PROPOSED CONSENT ORDER TO AID PUBLIC COMMENT
         _________________________________________________________________
    
       The Federal Trade Commission ("Commission") has accepted, subject to
       final approval, an agreement containing a proposed Consent Order from
       Glaxo Wellcome plc ("Glaxo") and SmithKline Beecham plc ("SB") which
       is designed to remedy the anticompetitive effects of the merger of
       Glaxo and SB. Under the terms of the agreement, the companies would be
       required to: (1) divest all of SB's worldwide rights and intellectual
       property relating to its antiemetic drug, Kytril, to F. Hoffman
       LaRoche; (2) divest SB's intellectual property rights to manufacture
       and market ceftazidime to Abbott Laboratories; (3) divest SB's
       worldwide rights and intellectual property relating to its antiviral
       drugs, Famvir and Denavir, including the rights to the base active
       ingredients, penciclovir and famciclovir, to Novartis Pharm AG and
       Novartis Pharmaceuticals Corporation; (4) return to Cantab
       Pharmaceuticals plc all rights to use Cantab's DISC technology for the
       development of a prophylactic herpes vaccine; (5) divest Glaxo's U.S.
       and Canadian Zantac trademark rights to Pfizer (formerly
       Warner-Lambert) and thereby remove restrictions on the ability of
       Pfizer's Zantac 75 to compete in the over-the-counter ("OTC") H-2
       blocker acid relief market; (6) assign all of SB's relevant
       intellectual property rights and relinquish all options to the drug
       renzapride, a drug to treat irritable bowel syndrome, to Alizyme plc;
       (7) assign all of Glaxo's relevant intellectual property rights and
       relinquish all of Glaxo's reversionary rights to GI147211C, a
       topoisomerase I inhibitor to treat certain types of cancer, to Gilead
       Sciences, Inc.; and (8) assign all of SB's relevant intellectual
       property rights and relinquish all options to regain control over
       frovatriptan, a drug to treat migraine headaches, to Vernalis Ltd.
    
       The proposed Consent Order has been placed on the public record for
       thirty (30) days for receipt of comments by interested persons.
       Comments received during this period will become part of the public
       record. After thirty (30) days, the Commission will again review the
       agreement and the comments received, and will decide whether it should
       withdraw from the agreement or make final the agreement's proposed
       Consent Order.
    
       Pursuant to a scheme of arrangement announced on January 17, 2000,
       Glaxo and SB propose to combine their two companies in a transaction
       valued at approximately $182 billion. Thereafter, the merged entity
       will be renamed Glaxo SmithKline plc. The proposed Complaint alleges
       that the proposed merger, if consummated, would constitute a violation
       of Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18, and
    
    SNIPPETS:
  • The Federal Trade Commission has accepted, subject to final approval, an agreement containing
  • Pharmaceuticals plc all rights to use Cantab's DISC technology for the development of a all of Glaxo's relevant intellectual property rights and relinquish all of Glaxo's reversionary
  • The proposed Complaint alleges that the proposed merger, if consummated, would constitute a al herpes, commonly referred to as cold sores; prophylactic herpes vaccines; OTC H-2 blockers;
  • The proposed Consent Order would remedy the alleged violations by replacing the lost
  • The proposed divestiture to Novartis remedies the anticompetitive effects of the merger in
  • In the oral and intravenous herpes antiviral market, the divestiture resolves the tiality of this information; and the former SB sales and marketing personnel be prohibited from
  • SB's Denavir is currently the only prescription topical antiviral medication approved by the
  • The Consent Agreement effectively remedies the anticompetitive effects in the market for
  • SB is one of the world's three leading vaccine suppliers, and currently, SB has the most
  • The merger is likely to chill certain innovations in a very complex area as a combined Glaxo
  • This will permit Cantab to pursue a prophylactic indication for the vaccine developed by the
  • H-2 blocker products originated as prescription products and were later approved by the FDA
  • Entry into the OTC H-2 blocker acid relief market is time-consuming, difficult, and expensive.
  • People with IBS experience varying symptoms, with some sufferers experiencing symptoms of
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