Pfizer has agreed to spin off its off-patent branded drugs business and combine it with generic drugmaker Mylan
The new company, to be based in the United States and incorporated in Delaware, will be led by Michael Goettler, president of Pfizer’s Upjohn unit, which sells Pfizer’s older drugs that have lost patent protection.
“We think it is clear Mylan needed to do something to change direction,” Wells Fargo analyst David Maris said, adding that the deal is also recognition that Pfizer wanted out of generics.Mylan, which had a market value of $9.5 billion prior to Monday’s announcement, last year said it would review its business as it grapples with lower prices of generic drugs and declining sales of its EpiPen emergency allergy treatment.
Mylan’s shares have lost about a third of their value in 2019 through Friday’s close. The stock was up more than 12.9% at $20.84 on Monday, while Pfizer slipped 2% to $42.23.Pfizer CEO Albert Bourla and his predecessor Ian Read have been saying for more than a year that the company would eschew large, transformative deals because of confidence in the strength of its pipeline.
Under terms of the agreement, Pfizer shareholders will own 57% of the new company and Mylan shareholders the rest. Each Mylan share will be converted into one share of the new company under the all-stock deal.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mylan to combine with Pfizer's off-patent medicines unitPfizer Inc will separate its off-patent drugs business and merge it with Mylan ,...
Read more »
Pfizer and Mylan reportedly near merger deal for low-priced drugsOne company makes Xanax and Viagra. The other makes the popular EpiPen drug for people with allergies. Now they may be close to merging.
Read more »
Pfizer to Merge Off-Patent Drug Business With MylanPfizer agreed to merge its off-patent drugs business with generic drugmaker Mylan. The companies are betting that combining Pfizer’s off-patent business with Mylan will provide a pathway to reignite sales growth.
Read more »
Pfizer to merge generics unit with Mylan; seeks to sharpen cancer focusDrugmaker Pfizer Inc has agreed to spin off its generic drugs business and combi...
Read more »
Pfizer to merge its old blockbuster-drug unit with MylanPfizer plans to combine its business that sells older blockbuster medicines such as Lipitor and Viagra with generic drugmaker Mylan in a deal that would reshape the brand-name and off-patent pharmaceutical industries.
Read more »