Pfizer is planning to divest its off-patent drug business, Upjohn, and combine it with generics-maker Mylan into a company with estimated annual sales of more than $20 billion.
The combined company would be led by Upjohn president Michael Goettler; Mylan chairman Robert Coury would serve as executive chairman. Mylan CEO Heather Bresch, who has led the company for eight years, would depart the combined organization after the deal closes.
Upjohn houses drugs such as Viagra, Lipitor and Lyrica. In Q2, the unit reported $2.8 billion in revenue, down 7% operationally, but accounting for 15% of Pfizer’s total earnings. The combined company would sell both off-patent drugs along with Mylan’s EpiPen and its generics.
The combination would give Mylan a wider geographic reach for its products and pipeline in new markets where Upjohn has sales infrastructure and market expertise, the companies said in their statement on the deestimated annual sales of more than $20 billional.
Pfizer has also said it is divesting its consumer health business into a joint venture with GlaxoSmithKline and acquiring cancer treatment company Array Biopharma and rare disease biotech Therachon.
Pfizer, which reported its earnings a day earlier than expected, said revenue dropped 2% in Q2 to $13.3 billion. Its biopharma unit grew 6%, Upjohn dropped 7% and consumer healthcare grew 1%. Mylan reported a 2% revenue increase in Q2 to $2.85 billion.