Pfizer Spinning Combined Off-Patent Drug Business With Generic Drugmaker Mylan NV
Pfizer (PFE) is a leading global provider of anti-infective medicines, offering patients access to a diverse portfolio of more than 80 products. Recently, Pfizer annonced that it will combinen off-Patent Drug Business, Upjohn, with generic drugmaker Mylan NV. This combination will surfacd on the otherside as an independent company under a new name with expected revenue of $19 billion to $20 billion and free cash flow of more than $4 billion in 2020. The new company to be based in the United States and incorporated in Delaware and to be led by Michael Goettler, president of Pfizer’s Upjohn unit. The venture is alos planned to spin off into a newly pubicly traded company and will include the likes of Viagra and Lipitor in its offering. Recent pressure on the pharmaceutical industry to maintain low prices for U.S consumers has led to restricted profits and industry mergers and this seems to be another move to meet all interests.
As per the terms of agreement shareholders of Pfizer will own 57% of the new company and Mylan shareholders will hold the remaining. Upjohn to issue $12 billion of debt releasing the proceeds to Pfizer, which plans to use the cash for debt payment.
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