Mylan, Pfizer’s Upjohn to merge, form new company
Pfizer is set to combine its off-patent and generics business with Mylan in an all-stock deal that will create a new company led by executives from both companies, Pfizer and Mylan announced Monday. The transaction will see Pfizer shareholders owning 57% of the new company, with Mylan shareholders owning 43%.
“We are creating a new champion for global health—one poised to bring world-class medicines to patients across a wide range of therapeutic areas,” said Pfizer CEO Albert Bourla. “I believe that Mylan’s unique profile and strategy has made it the obvious partner of choice in creating this powerful combination. By bringing Mylan’s growth assets to Upjohn’s growth markets, we will create a financially strong company with true global reach.”
Mylan and Pfizer said the new business would combine Mylan’s portfolio across various therapeutic areas and its pipeline with the well-known brands from Pfizer subsidiary Upjohn, which include Lipitor, Celebrex and Viagra. The merger also will allow the new company the increase Mylan’s product reach geographically into markets where Upjohn already has sales infrastructure and local market expertise, the companies said.
“The combined organization will have a presence across nearly every continent and major market, establishing a new leadership position in Asia, and offering products capable of treating all major therapeutic areas,” said Robert Coury, Mylan’s chairman. “This combination also further accelerates Mylan’s longstanding strategy to create the operational scale and commercial capabilities necessary to provide the world’s more than 7 billion people with access to medicine.”
The new company is expected to have pro forma 2020 revenue of between $19 billion and $20 billion with expected synergies of roughly $1 billion to be realized by 2023. It will be renamed and rebranded when the transaction closes, with Coury serving as executive chairman. Upjohn group president Michael Goettler will become CEO and current Mylan president Rajiv Malik will be president of the new company. Mylan CFO Ken Parks will depart the company at the close, as will Heather Bresch, Mylan’s current CEO, who plans to retire when the deal closes. The company will be headquartered in the United States and incorporated in Delaware with global centers in Pittsburgh, Pa.; Shanghai, China; and Hyderabad, India.
“I’m honored by the opportunity to lead this new company, which will deliver more medicines to more patients across the globe,” Goettler said. “I’m also excited to combine two talented and deeply experienced teams that share a passion for providing patients with access to medicines. I look forward to delivering on that shared commitment by combining Mylan’s broad and diverse portfolio with Upjohn’s iconic, trusted brands and bringing the Mylan growth products to the Upjohn growth markets.”
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