Pfizer-Mylan Generic Giant Solves Two Problems With One Deal
The merger lifts a strategic cloud from Pfizer, while removing a management miasma from Mylan.
Ending Mylan CEO Heather Bresch’s troubled tenure is one benefit for investors of the drugmaker’s deal with Pfizer.
Photographer: Andrew Harrer/BloombergThe merger of Pfizer Inc.'s off-patent drug business with struggling specialty drugmaker Mylan Inc., announced early Monday morning, should come as a relief for investors on both sides of the transaction.
Analysts have been clamoring for Pfizer to split off its Upjohn division focused on legacy drugs from its core prescription-drug operations so the drug giant could sharpen its focus on the higher-margin innovative business. This deal is a chance for CEO Albert Bourla to finally make the separation. And while Mylan holders may look back wistfully at Teva Pharmaceuticals Industry Ltd.’s $40 billion buyout offer in 2015 – this merger doesn’t offer the same type of immediate return – the deal with Pfizer gives them a 43% stake in a stronger company and will free Mylan’s assets from a management team that has had a calamitous recent run.