The WSJ reports that Pfizer (NYSE:PFE) is in talks with Mylan N.V. (NASDAQ:MYL) to combine its off-patent drugs business with the latter.
The deal, which could be announced as early as today, would result in Mylan owning ~40% of the merged organization and Pfizer owning ~60%. Pfizer would also receive ~$12B in proceeds from the new sale of debt.
Pfizer’s Michael Goettler will head the new company while Mylan Chairman Robert Coury will be Executive Chairman. Current Mylan CEO Heather Bresch will depart.
The companies are hoping that the combination will reignite growth. Generics have been under pressure for some time. The deal may stoke buying in other industry players.
Mylan is up 23% premarket on modest volume while Pfizer is down a fraction.
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