According to the Wall Street Journal’s reports, Pfizer and Mylan are planning to merge together for creating a global powerhouse of low-priced drugs. As per the terms in the deal under consideration, Pfizer will spin off their Upjohn business which is selling unpatented drugs and would combine with Mylan which is a manufacturer of name-brand and generic drugs.
The Mylan shareholders would have a little more than 40% while the remaining shares will rest with Pfizer shareholders. It was recently that both the drug makers lost their manufacturing rights of drugs which were sources of steady profit for the companies. Pfizer was popular for making Viagra and Xanax. Mylan was popular for EpiPen drugs for allergies. Nearly $1.4 billion was brought about by Viagra which is an erectile dysfunction drug in the annual sales. But later on a generic form of the drug was introduced by Teva Pharmaceuticals which then took up the market share. EpiPen’s first competitor gained approval from FDA in the previous year. FDA had added EpiPens to their drug shortage lists after Mylan raised the price of the drug by 400%.
The Upjohn portfolio of Pfizer also includes drugs like Xanax which is an anxiety medication, Lipitor which is used for treating high cholesterol and Zoloft which is a depression drug. If the merger deal turns to be success, the CEO of the new venture would be Pfizer’s executive and Mylan’s chairman will become the executive chairman.
Pfizer, one of the biggest drug makers worldwide has agreed to buy Array BioPharma for $11 billion. It is a firm that produces lucrative drugs for cancer treatment. Pfizer is also planning to start a joint venture with the GlaxoSmithKline which will have estimated annual sales of $12.7 billion. This deal would be bringing together the over-the-counter medications of Pfizer like Caltrate and Centrum with the top brands of GSK like Nicorette and Excedrin.