Ciba-Geigy/Sandoz Deal Gets Initial FTC OK

The Federal Trade Commission conditionally approved the merger of Swiss drug giants Ciba-Geigy and Sandoz, a deal that would create the world’s second-largest drug company, Novartis. The agency said it would require a record $1-billion-plus in divestitures and licensing to preserve competition in key areas. The agreement seeks to ensure a strong second player in the new field of gene therapy, a market the U.S. government estimates will mushroom to $45 billion by 2010. Sandoz agreed to license some gene therapy technology to Rhone-Poulenc Rorer Inc. so that firm could compete against the merged companies. Novartis will probably come into being to challenge giant Glaxo-Wellcome of Britain within three months, pending final FTC action after a 60-day comment period.