Mylan MYL shares are trading higher after it announced the launch of a new company with Pfizer's PFE Upjohn division.
Pfizer shareholders will own 57% of the combined new company, and Mylan shareholders will own 43%. The new company is expected to have 2020 revenues of $19 billion to $20 billion.
“The new company, which combines the unique assets of Mylan with the iconic brands of Pfizer's Upjohn business, will not only accelerate our mission to serve the world's changing health needs, but also further unlock the true value of our platform while delivering attractive returns to shareholders for many years to come,” said Robert Coury, Mylan chairman.
“Importantly, 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 boards of directors of both Mylan and Pfizer have unanimously approved the transaction.
Pfizer shares were trading down 1.76% at $42.33 in Monday’s pre-market session. The stock has a 52-week high of $46.47and a 52-week low of $38.07.
Mylan shares were trading up 14% at $21 in Monday’s pre-market session. The stock has a 52-week high of $39.59 and a 52-week low of $16.63.
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