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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.
The deal, if completed, could be announced as early as Monday, said the sources. Under the potential stock deal, Mylan investors will get a little more than 40 per cent of the new entity and Pfizer investors the rest.
Mylan executives held a meeting in New York last week to discuss the accord, and no one else is in the frame for the business, one of the sources said.
Mylan, whose shares have fallen almost 50 per cent in the past year, has a market value of $9.5 billion. Pfizer, up 12 per cent in the same period, is worth $240 billion.
Michael Goettler, who runs Pfizer’s off-patent drug unit, will become the CEO of the combined company, and Mylan Chairman Robert Coury will be the Executive Chairman, one of the sources said. Current Mylan CEO Heather Bresch will depart.
Mylan President Rajiv Malik, who faces civil suits accusing him of taking part in an alleged price-fixing scheme, would ultimately leave the combined company, said a source.
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