Mylan, Pfizer Launch New Generics Company
Mylan and Pfizer have completed their previously announced combination of Mylan and Upjohn, Pfizer’s off-patent branded and generic established medicines business, to form a new company, Viatris. The companies had announced the merger in July 2019.
The combined company currently has 45,000 employees and is headquartered in the US and has global centers in Pittsburgh, Shanghai, and Hyderabad, India. The portfolio of Viatris now comprises more than 1,400 approved molecules for generic, complex generic, and branded medicines, biosimilars, and over-the-counter consumer products.
The new company has initiated a global restructuring program to achieve synergies of $1 billion. The company is currently in the process of defining the specific parameters of the program, including workforce actions and other restructuring activities. Further details for this program are expected to be disclosed by the end of 2020 as plans are finalized. Key activities of the expanded program are expected to reduce the company’s cost base through the rationalization of its global manufacturing and supply network and the optimization of the company’s functional and commercial capabilities.
In creating Viatris, the deal was structured as an all-stock, Reverse Morris Trust transaction; Upjohn was spun off/split off to Pfizer’s shareholders and, immediately thereafter, combined with Mylan with Pfizer shareholders owning 57% of the combined new company and former Mylan shareholders 43%. Pfizer will retain its Meridian Medical Technologies business and the Japan generics collaboration with Mylan will become part of Viatris.
Viatris will be led by Robert Coury, Executive Chairman, formerly Executive Chairman of Mylan, and Michael Goettler, CEO, formerly Group President, Upjohn. Rajiv Malik, formerly Mylan President, is now President of Viatris.
For a further analysis of the new company, its product portfolio and manufacturing network, see the article, “Company on the Move: Viatris,” in this week’s issue (November 18, 2020) of DCAT Value Chain Insights, a companion editorial newsletter of Top Industry News.