Health

Pfizer On The Verge Of Confirming A Merger For Off-Patent Assets With Mylan

A new report surfacing first on the Financial Times has confirmed that Pfizer is in the final stages of talks to merge its off-patent assets with the USD 10 billion worth of Mylan’s generics business in one of the biggest stock deals of this week. The deal will expectedly be announced officially on Monday creating a large seller of Mylan’s generic medicines and Pfizer’s off-patent products, including the likes of cholesterol drug Lipitor and Viagra.

Mylan will have a 40 per cent share in the new venture, while Pfizer will be selling debt of around USD 12 billion, as per the report in Financial Times. The announcement will also likely feature the departure of Mylan’s long time leader and Chief Executive, Heather Bresch, after his tenure of seven long years. Mylan reached its peak back in 2015 and has seen its shares fall by almost 75 per cent since then. The decline was primarily credited to the low pricing structure for generics that has recently emerged in the United States.

Mylan’s agitation with the low prices fuelled a controversy recently after the company raised the price of EpiPens, a product used to treat allergic reactions. Pfizer has been attempting to present itself as a company with more innovative vaccines and medicines and has swooped quite a few acquisitions to make it happen. In June, it bought Array Biopharma for USD 10.6 billion and this will be their second acquisition in a month or so.

The pharma industry has been witness to quite a few major acquisitions of late. Of the ones confirmed, US drugmaker Abbvie’s agreement to buy the makers of Botox, Allergan, for a whopping USD 63 billion stands to be a step ahead of others. The deal did not go down well with Abbvie’s investors as the company suffered a decline of 15 per cent following the deal.

About the author

Joe Holmberg

Joe Holmberg

Joe is an expertise in the field of Technology. He owns a Master’s Degree in Computer Science and Technology. He has been involved in the creation and administration of computational systems from last 5 years. “Latest gadgets” is the area of his interest that has connected him with Lincoln Trail Publishing. When he gets free time, he loves to surf the Internet and research on the trending gadgets in the market.

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