Mylan to merge with Pfizer's generics unit

Mylan to merge with Pfizer's generics unit

Pharmaceutical producer Mylan will merge with Pfizer's newly spun-off generics unit, the two companies announced Monday.

The resulting Pfizer-controlled company will be a global generic drug powerhouse. Michael Goettler, president of Pfizer’s generics unit, Upjohn, will lead the new company.

Pfizer shareholders will own 57 percent of the combined new company, while Mylan shareholders will own 43 percent.

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The deal, expected to be completed midway through next year, will have an estimated yearly revenue of over $19 billion with sales in more than 165 countries.

The combined company will be incorporated in Delaware and operate through three global centers, including one in Pittsburgh.

The two companies already have a history of collaborating on generics.

Pfizer manufactures Mylan’s EpiPen, an auto-injector used to halt life-threatening allergic reactions. Both companies have faced criticism for price spikes in the life-saving medicine.

Upjohn will issue $12 billion of debt at or prior to separation, with gross debt proceeds kept by Pfizer.

The new company will have about $24.5 billion in total debt outstanding at closing.

--This report was updated at 2:47 p.m.