'Drug giant merger plan for Pfizer and Mylan'
Irish-made blockbuster drugs Viagra and Lipitor look set to be folded into a new business being carved out of Pfizer and Mylan.
Pfizer is in talks to combine its off-patent business, which includes Lipitor cholesterol pills and male-impotence drug Viagra, with Mylan and form a generic drug giant, according to people familiar with the matter.
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The deal could be announced as early as today. Under the potential stock deal, Mylan investors would get a little over 40pc of the new entity and Pfizer investors the rest.
Mylan has more than 1,200 employees in Ireland, at manufacturing plants in Dublin and in the Connemara Gaeltacht as well as a headquarters operation in Dublin for functions like regulatory services, human resources, marketing and IT. Pfizer employs around 3,200 people at its six sites in Ireland in manufacturing, shared services, R&D, treasury and commercial operations.
Mylan executives held a meeting in New York last week to discuss the Pfizer deal, and no other potential buyers for the business are on the cards.
Mylan, whose shares have fallen almost 50pc in the past year, has a market value of $9.5bn. Pfizer's share rose 12pc in the same period and is worth $240bn.
Michael Goettler, who runs Pfizer's off-patent drug unit, would become CEO of the combined company, and Mylan chairman Robert Coury would be executive chairman. Current Mylan CEO Heather Bresch would depart.
Mylan president Rajiv Malik, who faces civil lawsuits accusing him of taking part in an alleged price-fixing scheme, would ultimately leave the combined company, one of the people said. Officials for Pfizer and Mylan declined to comment.
Additional reporting Bloomberg