US: Pfizer and Mylan reportedly near merger deal for low-priced drugs

Pfizer plans to combine its off-patent business, which includes Lipitor cholesterol pills and male-impotence drug Viagra, with Mylan NV and form a generic drug giant.

The Wall Street Journal reported Saturday, July 27, that pharma giants Pfizer and Mylan are nearing a deal that could create a global powerhouse in the low-price drug market. A formal agreement could be announced as soon as Monday, the paper reported, citing unnamed sources familiar with the discussions.

Under the terms reportedly under consideration in the stock deal, Pfizer would spin off its Upjohn business, which runs a portfolio of drugs that are no longer protected by patents, and combine the firm with Mylan, which manufactures generic and name-brand drugs.

Both drugmakers recently lost exclusive rights to manufacture drugs that were big money makers for the companies. Erectile dysfunction drug Viagra brought in an estimated US$1.4 billion in annual sales for Pfizer before Teva Pharmaceuticals introduced a generic version of the pill in 2017 that quickly ate up market share.