Pfizer and Mylan to launch new global pharmaceutical company

Upjohn, Pfizer’s off-patent branded and generic business, will merge with Mylan

US-headquartered Mylan and Pfizer have announced a definitive agreement to combine Mylan with Upjohn, Pfizer’s off-patent branded and generic established medicines business. The merge will create a new global pharmaceutical company.

The new company will be domiciled in the US, and incorporated in Delaware and will operate Global Centers in Pittsburgh, Pennsylvania; Shanghai, China, and Hyderabad, India. The new business is expected to have pro forma 2020 revenues ranging US$19 to $20 billion.

Mylan brings a diverse portfolio across many geographies and key therapeutic areas, such as central nervous system and anaesthesia, infectious disease and cardiovascular, as well as a robust pipeline, high-quality manufacturing and supply chain excellence.

Upjohn brings trusted, iconic brands, such as Lipitor (atorvastatin calcium), Celebrex (celecoxib) and Viagra (sildenafil), and proven commercialisation capabilities, including leadership positions in China and other emerging markets.

Robert J. Coury, Mylan Chairman, commented: "The new company, which combines the unique assets of Mylan with the iconic brands of Pfizer’s Upjohn business, will not only accelerate our mission to serve the world’s changing health needs, but also further unlock the true value of our platform while delivering attractive returns to shareholders for many years to come."

Coury said the combined organisation 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. "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 seven billion people with access to medicine."

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

The transaction will allow the new company to meaningfully expand the geographic reach of Mylan’s existing broad product portfolio and future pipeline—including significant investments that have been made across complex generics and biosimilars—into new growth markets where Upjohn has existing sales infrastructure and local market expertise.

Dr Albert Bourla, Pfizer CEO, commented: “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."

For Bourla, by bringing Mylan’s growth assets to Upjohn’s growth markets, the companies will create a financially strong business with true global reach.

"I’m also excited about the management team, which combines strong executive talent from both companies, whose commitment to improving global health for patients and to delivering returns to shareholders are great assets for the new company," Bourla said.

Under the terms of the agreement, which is structured as an all-stock Reverse Morris Trust transaction, each Mylan share would be converted into one share of the new company.

The news coincides with Mylan CEO Heather Bresch's decision to announce her intention to retire upon deal close after 27 years of service and leadership within Mylan.