(RTTNews) - Pharmaceutical company Mylan N.V. (MYL) and Pfizer Inc. (PFE) agreed Monday to combine Mylan with Upjohn, Pfizer's off-patent branded and generic established medicines business, creating a new global pharmaceutical company.
The new company, expected to have pro forma 2020 revenues of $19 billion to $20 billion, will expand capabilities across more than 165 markets by bringing together two highly complementary businesses. Phased synergies of about $1 billion annually are expected to be realized by 2023.
Mylan brings a diverse portfolio across many geographies and key therapeutic areas, such as central nervous system and anesthesia, infectious disease and cardiovascular, while Upjohn brings trusted, iconic brands, such as Liptor (atorvastatin calcium), Celebrex (celecoxib) and Viagra (sildenafil).
Under the terms of the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, each Mylan share would be converted into one share of the new company. Pfizer shareholders would own 57% of the combined new company, and Mylan shareholders would own 43%. The Boards of Directors of both Mylan and Pfizer have unanimously approved the transaction.
The new company, which will be renamed and rebranded at close, will be led by Mylan's current Chairman Robert Coury, who will serve as Executive Chairman, Michael Goettler, current Group President, Upjohn, who will serve as Chief Executive Officer and Rajiv Malik, current Mylan President, who will serve as President.
The new company will be domiciled in the U.S. and incorporated in Delaware and will operate Global Centers in Pittsburgh, Pennsylvania; Shanghai, China, and Hyderabad, India.
The transaction is anticipated to close in mid-2020, subject to approval by Mylan shareholders and customary closing conditions, including receipt of regulatory approvals.
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