A new Mylan-Pfizer deal that will have the companies undergoing a merger has MYL stock on the rise Monday.
The deal between Mylan (NASDAQ:MYL) and Pfizer (NYSE:PFE) will have the former combining with the latter’s off-patent drug company Upjohn. This will occur with an all-stock, Reverse Morris Trust transaction that has unanimous support from both companies’ Boards of Directors.
The Mylan-Pfizer deal will have all shares of MYL stock being converted into shares of the new company. This will have MYL shareholders owning 43% of the new company. The remaining 57% will belong to holders of PFE stock.
If all goes well with the Mylan-Pfizer deal, it will result in a new pharmaceutical company with 2020 revenue ranging from $19 billion to $20 billion. Adjusted EBITDA for that same period is expected to be between $7.5 billion and $8.0 billion.
With the combination from the Mylan-Pfizer deal, the new company will gain new leaders. This includes Mylan Chairman Robert Coury serving as the Chairman of the new company. The CEO for the new company will be Michael Goettler, who serves as the current President of Upjohn. MYL President Rajiv Malik will also serve also President of the new company.
The Mylan-Pfizer deal is set to close sometime in mid-2020. However, it must first complete customary closing conditions. This includes getting approval from regulators, as well as from shareholders.
MYL stock was up 14% and PFE stock was down 1% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.