Pfizer will merge generics unit with Mylan

Abstract

Pfizer will combine its generic-drug unit, Upjohn, with the beleaguered specialty drugmaker Mylan. The deal is the big pharma company’s latest step to narrow its focus to its innovative medicines business. Combining Upjohn and Mylan will create a generics giant with revenues next year of close to $20 billion. The yet-to-be-named firm, of which Pfizer shareholders will own 57%, will market generic versions of once-blockbuster-selling drugs, including the cholesterol drug Lipitor, the erectile dysfunction treatment Viagra, and Lyrica, a nerve pain medication that just lost patent exclusivity last month. Hiving off the generics business is part of Pfizer’s ongoing effort to become leaner and more focused on finding new medicines. Pfizer recently shed its consumer health unit by creating a joint venture with GlaxoSmithKline that will eventually be spun off as a stand-alone company. Pfizer is meanwhile beefing up its research engine and innovative drug portfolio. In June, it agreed