Background
Pfizer (PFE) is spinning off its Upjohn unit and combining it with generic drugmaker Mylan (MYL) to create a giant off-patent group with global annual revenues worth about $20 billion.
The all-stock deal will unite former branded blockbusters like Lipitor and Viagra with Mylan’s pipeline of new generics and biosimilars, expanding their reach into China and other emerging markets.
The deal would result in Mylan owning ~43% of the merged organization and Pfizer owning ~57%. Pfizer would also receive ~$12B in proceeds from the new sale of debt.
Generics have