Mylan, Pfizer's Upjohn To Merge And Create New Company

Marco Green
July 29, 2019

Pfizer announced Monday morning a new merger with generic drugmaker Mylan.

Pfizer, which was scheduled to report its second-quarter earnings on Tuesday, also said it would combine Upjohn, its off-patent drugs business, with Mylan NV MYL.O .

"On behalf of Mylan's board of directors, I extend my gratitude and respect for Heather Bresch's years of extraordinary and passionate leadership at Mylan which helped to pave the way for today's historic announcement regarding the combination of Mylan and Upjohn", Mylan's Board chairman Robert J. Coury said. She's been with the company for 27 years. Pfizer manufactures Mylan's EpiPen, an auto-injector used to halt life-threatening allergic reactions. EpiPens have been in short supply for more than a year because of quality problems and upgrades at a Pfizer factory.

The move, which brings blockbuster treatments Viagra, EpiPen and Lipitor under one umbrella, is part of a years-long effort by Pfizer to split into three parts - innovative medicines, lower margin generic drugs business and consumer healthcare.

Pfizer shareholders would own 57% of the combined new company and Mylan shareholders the rest, the companies said.

The deal Monday arrives at a precarious time for big drug makers who are threatened by patent protection losses and lower-priced rivals.

The new company will have global centers in Pittsburgh, Shanghai and in India. Upjohn will issue $12 billion of debt at or prior to separation.

The agreement is set to be finalized in 2020, with a new name being penned at the close of the deal.

Other reports by Click Lancashire

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