Pfizer in talks to merge off-patent drugs business with Mylan in a stock deal; plans to form global generic drug giant: Report

Pfizer Inc is in talks to merge its off-patent drugs business with Mylan NV in a stock deal.

Pfizer Inc plans to combine its off-patent business, which includes Lipitor cholesterol pills and male impotence drug Viagra, with Mylan NV and form a generic drug giant, according to people familiar with the matter, Bloomberg said.

The deal if completed could be announced as early as Monday, said sources to Bloomberg.

Mylan shareholders would receive a little more than 40 percent of the newly formed entity, with Pfizer shareholders receiving the remainder, according to a source familiar with the matter, reported Reuters adding that Pfizer would also get about $12 billion in proceeds from a new sale of debt.

 Pfizer in talks to merge off-patent drugs business with Mylan in a stock deal; plans to form global generic drug giant: Report

The Pfizer campus in US. Reuters

Separation of Pfizer’s off-patent business would be a tax-free spin-off, the person added.

Last year, Pfizer said it was planning to reorganize into three units, separating its consumer healthcare business.

The restructuring will allow the company to evaluate its businesses better and could result in selling or spinning off its off-patent drugs, Wall Street analysts earlier said.

The Wall Street Journal first reported the talks between the companies on Saturday.

Pfizer and Mylan did not immediately respond to requests for comment.

--With inputs from Reuters

Updated Date: Jul 29, 2019 09:20:15 IST