Mylan Upjohn merger : US pharma giant Pfizer will spin off Upjohn, its off-patent branded and generic established medicines business, and merge it with Dutch pharma company Mylan, to form a new global pharma company.
As per the terms of the all-stock, Reverse Morris Trust transaction, each of Mylan shares will be converted into one share of the new pharma company. Pfizer shareholders will hold 57% stake of the combined new pharma company while Mylan shareholders will hold the remaining stake of 43%.
Commenting on Mylan Upjohn merger, Dr. Albert Bourla – Pfizer CEO, said: “For Pfizer, this transaction represents our sharpened focus on innovative medicines and is a testament to our purpose – breakthroughs that change patients’ lives. At the same time, we’ll maintain the financial flexibility to advance our strong pipeline, invest for growth and continue to return capital to our shareholders.”
Mylan Upjohn merger is expected to expand the capabilities of Pfizer and Mylan across 165 plus markets by clubbing two highly complementary businesses. Mylan has a diverse portfolio in several regions and major therapeutic areas like central nervous system and anesthesia, infectious disease and cardiovascular in addition to a strong pipeline, and capabilities in manufacturing and supply chain.
Upjohn, on the other hand, comprises brands like Lipitor (atorvastatin calcium), Viagra (sildenafil), and Celebrex (celecoxib), and proven capabilities in commercialization, including leading positions in China and other emerging markets.
Mylan Upjohn merger will enable the new pharma company to expand the geographic presence of the Dutch pharma company’s existing product portfolio and future pipeline meaningfully. This includes considerable investments in complex generics and biosimilars into new growth markets where Upjohn already has sales infrastructure and local market expertise.
Mylan Upjohn merger is expected to result in a sustainable, diverse and differentiated portfolio of prescription drugs, complex generics, over-the-counter products, and biosimilars. The combined company, which will be renamed and rebranded upon closing of the merger, is estimated to have 2020 revenues of $19-20 billion.
Michael Goettler, who is currently Group President at Upjohn will be the Chief Executive Officer (CEO) of the new pharma company, which will be domiciled in the US and incorporated in Delaware.
Heather Bresch – Mylan CEO, commenting on Mylan Upjohn merger, said: “Mylan was founded nearly 60 years ago with the core purpose to provide access to medicine. Thanks to the hard work and dedication of thousands of Mylan employees and the transformative vision from leaders past and present, including Board Chair Robert J. Coury, Mylan has made significant strides toward providing that same access at a global level for the world’s 7 billion people. And now, the creation of this new company introduces a powerful expanded platform with the potential for patient impact that will be truly transformative and unique within the industry.”
Mylan Upjohn merger, which is subject to approval by the Dutch pharma company’s shareholders and customary closing conditions such as receipt of regulatory approvals, is expected to be wrapped up in mid-2020.