Pfizer to Combine with Generic-Drug Maker Mylan
By Connect-Bridgeport Staff on July 29, 2019
According to CNBC, Pfizer, the world’s largest drugmaker, plans to divest its off-patent drug business and combine it with generic-drug maker Mylan.
Under the agreement, which is structured as an all-stock deal, each Mylan share would be converted into one share of the new company.
Pfizer shareholders would own 57% of the combined new company and Mylan shareholders would own 43%, Mylan said. The Wall Street Journal first reported the news.
The combined company, which will sell Mylan’s EpiPen and Pfizer’s Viagra, will be domiciled in the U.S. The deal will be structured in what’s known as a reverse Morris trust, with Pfizer’s Upjohn business divested and then combined with Mylan.
Mylan shares jumped 20% to $22.10, while Pfizer shares slipped nearly 2% to $42.34 in early trading on Monday.
The combined company could draw annual sales of more than $20 billion. Mylan reported 2018 sales of $11.4 billion and while Pfizer hasn’t broken out full-year numbers for its China-based Upjohn unit, its first-quarter sales were just over $3 billion. Pfizer’s total 2018 revenue was $53.6 billion.
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