Pfizer plans to merge with Mylan, will create an off-patent drug giant
Category: #health  By Mateen Dalal  Date: 2019-07-29
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Pfizer plans to merge with Mylan, will create an off-patent drug giant

Mylan holds a market value worth $9.5 billion and has witnessed almost 50% fall in its shares over the last year

Pfizer Inc., a multinational pharmaceutical company based in America, reportedly plans to combine its off-patent unit, that includes Viagra, a male impotence drug and cholesterol pills Lipitor, with Mylan NV in order to form a generic drug giant.

Apparently, the deal is supposed to be announced soon and under the terms of agreement, the investors of Mylan will get a little over 40% of the newly formed entity and the investors of Pfizer will get the rest.

According to reports, executives of Mylan had held a meeting to discuss the accord in New York last week. Mylan holds a market value worth $9.5 billion and has witnessed almost 50% fall in its shares over the last year. Pfizer experienced about 12% stock price fall in the same period and holds a value of $240 billion.

Sources familiar with the matter said that Michael Goettler, who handles the off-patent drug unit of Pfizer, is going to hold the position of chief executive of the combined company and Robert Coury, chairman of Mylan, would become the executive chairman. Heather Bresch, CEO of Mylan, will leave the office. Rajiv Malik, president of Mylan faces civil suits and has been accused of participating in price-fixing scheme, will be leaving the combined company.

According to reports, the business will remove the structure of Dutch governance owing to frustrated investors of Mylan and will base it in the U.S. Under the potential deal, the new combined company will be refinancing debt held by Mylan and the Pfizer subsidiary.

Mylan reportedly has over $13 billion in long-term debt. Owing to the increasing competition that has driven the prices to reduce, the industry for generic-drug has been under rising pressure recently. In certain cases, the companies have been unable to charge more that the cost of production for few medications.

 

Source credit- https://www.livemint.com/companies/news/pfizer-in-talks-to-merge-off-patent-drugs-business-with-mylan-1564232196987.html

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About Author

Mateen Dalal    

Mateen Dalal

Mateen has completed his Bachelor’s degree in electronics and telecommunication engineering, post which he lent his proficiency to the industry, working as a quality and test engineer. Drawn intricately toward the field of content creation however, Mateen soon switc...

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