Regulators Approve Wellcome, Glaxo Deal

An agreement clearing the way for the merger of drug makers Wellcome PLC and Glaxo PLC won final approval from federal regulators Tuesday.

In March, Glaxo agreed to sell the rights to a migraine drug under development by Wellcome in order to win U.S. approval for its $14.3 billion acquisition of Wellcome, the world’s largest pharmaceutical maker.

The Federal Trade Commission had feared that the combined Glaxo Wellcome PLC could monopolize the migraine drug market, since both British companies were developing treatments.

The European Union also put similar conditions on the deal.

Under the FTC’s order, Wellcome will sell its research and development assets for the migraine drug to replace the competition lost as a result of the merger.