Pfizer will merge its off-patent drugs business with generic maker Mylan to create a giant global seller of lower-priced drugs, the Wall Street Journal first reported.
Why it matters: The world's largest drug maker's deal with Mylan brings together two businesses that have experienced slowed sales since former big sellers lost patent protection.
Details on the agreement:
- Pfizer shareholders would own 57% of the new company and Mylan shareholders would own 43%, Mylan confirmed to Reuters Monday.
- The combined company would be based in the U.S. and current Mylan Chief Executive Heather Bresch would leave.
- The companies hope for a boost in business on key drugs that lost patent protection: Pfizer has Lipitor cholesterol pills and Viagra, and Mylan has the EpiPen emergency allergy shot.