Pfizer, the American multinational Pharmaceutical Corporation is set to merge its off-patent drug business with Mylan, based in the Netherlands. The merger will lead to shareholders of Pfizer own 57% of the new business while rest will be owned by Mylan.
The new formed generic giant is expected to generate between $19B-$20B in revenue. According to the two companies, Mylan Chief Executive Heather Bresch is expected to retire after the deal is complete which is expected to happen in the middle of 2020.
Pfizer Off-Patent Drug Business nicknamed as UpJohn with Mylan, known for EpiPen emergency allergy shot will reignite the sales of the new company. The merger will also include Lipitor cholesterol pills and male impotence drug Viagra.
The American based company is on the verge of shelving on new products that will bring in $1 Billion in sales if approved. This would produce a ripple effect in the Indian market as the new company it will help to lower the costs that will give it more muscle to compete with Indian and Chinese companies.
Earlier, Mylan reported 7% down in sales and $2.5 Billion in sales. The stock of Mylan has dropped by 75% from the spring of 2015. It was criticized in 2015 and 2016 for raising its price of top-selling product-EpiPen by 550%.
Going forward to Pfizer, it’s combining its consumer health business with GlaxoSmithKline in a joint venture. While last month the company announced it’s acquiring Cancer Drug Maker Array BioPharma for $10.4 Billion.