United States-based Pfizer has agreed to integrate its off-patent branded and generic established medicines business Upjohn with Mylan to set up a new global pharmaceutical company, it was reported yesterday.

Based on an all-stock Reverse Morris Trust transaction, each share of Mylan will be converted into one share of the new company. The transaction enables Pfizer shareholders to own a 57% share in the new company, while Mylan shareholders will own the remaining 43% interest.

The new company is to serve more than 165 markets and will have a diverse portfolio that covers major therapeutic areas such as central nervous system and anaesthesia, infectious disease and cardiovascular. It will have a diverse and differentiated portfolio of prescription medicines, complex generics, over-the-counter products and biosimilars. The new company is expected to have pro forma 2020 revenues between USD19bn and USD20bn and the pro forma adjusted EBITDA between USD7.5bn and USD8bn for the same period. The deal is likely to be completed in mid-2020 subject to approval by Mylan shareholders and customary closing conditions.