Novartis shareholders approve merger with Alcon

BASEL, Switzerland — Novartis shareholders approved the merger of Alcon into Novartis and the issuance of up to 108 million shares as part of the transaction, according to a press release from Novartis.

More than two-thirds of Novartis shareholders voted today in favor of the merger, which followed a more than two-thirds positive vote by Alcon shareholders on Thursday, the release said.

"The new Alcon Division will cover more than 70% of the eye care segment with more than $9 billion in annual revenue," Joseph Jimenez, CEO of Novartis, said in the release. "We are confident that we will be able to conclude the integration within 6 months after the completion of the merger."

According to an Alcon press release, the newly formed Alcon business is the second largest division of Novartis. The division will be headquartered in Fort Worth, Texas, and will operate in 75 countries.

In the second half of 2011, a new commercial model will be implemented. The Alcon business will align as the Surgical business, which will provide equipment, instruments, disposable products and IOLs for surgical procedures that address cataracts, vitreoretinal conditions, glaucoma and refractive errors; the Pharmaceutical business, which will combine Alcon's pharmaceuticals with selected products from Novartis Ophthalmics, excluding Lucentis (ranibizumab), and will oversee the line of professionally driven over-the-counter brands in artificial tears and ocular vitamins; and the Vision Care business, which will combine the Ciba Vision portfolio of contact lenses and lens care products with Alcon's contact lens solution portfolio.

Novartis entered into a definitive agreement to acquire Alcon in late 2010.

According to a separate Alcon press release, Alcon shareholders will receive 2.9228 Novartis shares or American Depositary Shares, in addition to $8.20 in cash, for each Alcon share they own.