CHARLESTON, W.Va. — Mylan will eventually get a new name as part of its merger with Upjohn, a division of Pfizer.
On Monday, both companies announced an agreement to together create a new global pharmaceutical company with a deal that was expected to close by the middle of 2020.
“Across the board for patients, shareholders and other stakeholders and the company overall, this transaction is truly transformational,” said Robert Coury, the current chairman of Mylan.
Coury will serve as executive chairman of the new company which will be renamed at closing.
Also at that time, Heather Bresch, Mylan’s CEO since 2012, will be leaving the company after 28 years.
“I believe that this historic milestone in Mylan’s amazing journey is also the right time for me to retire from the company and pursue a new chapter of my own — one that will continue to be focused on serving people, patients and public health,” Bresch said.
She started with Mylan as a data entry clerk and worked her way up to CEO.
In that time, “I have had the privilege of growing with Mylan from a $100 million revenue company with 300 employees to a global organization that, upon close of this transaction, will have 45,000 employees and nearly $20 billion in revenue,” Bresch said.
Together, officials said Upjohn and Mylan will have a “true global commercial footprint” with a “sustainable and diverse” portfolio.
“Heather has left a strong and permanent mark to benefit of our company, patients and shareholders in so many ways,” Coury said.
Ahead, “The combined organization will have a presence across nearly every continent and major market, establishing a new leadership position in Asia and offering products capable of treating all major therapeutic areas.”
The CEO of the new company will be Michael Goettler, current group president for Upjohn.
“Combining Mylan with Upjohn gives us a unique opportunity to create something different — a pharma company with a truly unique financial profile that does not correlate with any of the pharmacy industry peers,” Goettler said.
Rajiv Malik, Mylan’s current president, will be the president of the new company while Ken Parks, Mylan CFO, will leave the company at closing with Bresch.
Plans call for the new company to be incorporated in Delaware with global centers in Pittsburgh, Pennsylvania; Shanghai, China and Hyderabad, India.
In all, there will be 51 manufacturing sites worldwide.
No site closures were announced during Monday’s conference call detailing the merger.
Upjohn is Pfizer’s off-patent branded and generic medicines business that includes Lipitor, Celebrex and Viagra. In China and other emerging markets, even with the new company name, it will still be known as Upjohn.
Mylan is a generic drug maker operating in different parts of the world.
A refinancing of Mylan’s $13 billion in long-term debt is one part of this merger.
“This combination creates a stronger company by combining the best aspects of Pfizer’s and Mylan’s DNA,” said Albert Bourla, CEO of Pfizer.
After the new company is formed, officials estimated about a third of its revenues will come from generics, 15 percent from the struggling U.S. generic market.
“We truly believe that this compelling combination best positions the company to unlock value for all shareholders,” Coury said.
Goettler agreed. “We have a truly exciting future ahead of us,” he said. “Together, we’ll have an enhanced global scale and reach that few companies can match.”
Boards of Directors for both Mylan and Pfizer unanimously approved the all-stock transaction which will grant Pfizer shareholders 57 ownership of the new company with the rest designated for Mylan shareholders.