U.S. Markets closed

Pfizer, Mylan talk generic drug business merger: report

FoxBusiness.com

Talks are underway to merge Pfizer’s off-patent drugs business with generic drugmaker Mylan NV to boost sales growth and create a global seller of lower-priced medicines, The Wall Street Journal reported Saturday.

The paper, citing people familiar with the merger, said the deal, which hasn’t been completed, could be announced as early as Monday.

The discussion comes in the wake of slower sales brought on by lower-priced competition and the loss of patent protection.

Pfizer is the maker of the male-impotence drug Viagra and Lipitor cholesterol pills, while Mylan is known for the EpiPen emergency allergy shot.

A person familiar with the merger told the newspaper discussions centered on a stock deal in which Mylan shareholders would own a little more than 40 percent of the new company  and Pfizer shareholders would get the rest. Pfizer would also receive about $12 billion from a new sale of debt, the person said.

CLICK HERE TO GET THE FOX BUSINESS APP

The head of New York-based Pfizer’s off-patent drug business, Michael Goettler, would become the chief executive of the new company, while Mylan chairman Robert Coury would be executive chairman, a source said.

Related Articles