"Mylan, Pfizer's Upjohn will combine to form new pharmaceutical company ; no mention of potential effects on Morgantown location"
by Conor Griffith NCWV Business Editor Jul 29, 2019 0
https://www.wvnews.com/news/wvnews/mylan-pfiz...23c05.html (The deal is expected to close in mid-2020, creating the new company which is anticipated to have revenue streams to the tune of $19-$20 billion)
Read More: https://investorshangout.com/post/view?id=571...6HWYV8BZL)
PITTSBURGH — Mylan Pharmaceuticals announced Monday morning its intention to merge with Upjohn, Pfizer’s off-patent branded and generic established medicines business, to create a new pharmaceutical company which executives said will have unique capabilities across a global reach.
The new company — the name and brand of which have not yet been released pending closure of the deal — will sell the two drug companies’ top products, including Mylan’s EpiPen and Pfizer’s Viagra.
The new business will be domiciled in the United States, incorporated in Delaware and operate global centers in Pittsburgh, Shanghai, China, and Hyderabad, India
Mylan, which was founded in West Virginia and still has a major manufacturing location and research center in Morgantown that employs about 3,000 people, has its headquarters in Pittsburgh.
While much was said during a webinar Monday about how the merger will benefit shareholders and patients, nothing was said of the Morgantown-area operations of what was to become of those employees as part of this merger.
In April 2018, Mylan laid off around 500 employees — mainly in operations, both union and non-union positions which constituted about 15 percent of the Morgantown area workforce — following discussions between company officials and union representatives. This was announced via press release and union officials declined to comment.
Following the announcements, Mylan representatives appeared before the Monongalia County Commission saying the layoffs were a tough decision and came as part of plan to streamline efficiency which was necessary to retain product quality and stabilize operations for the long run.
No site closures or layoffs were announced during the webinar and conference call, but neither were any assurances.
NCWV Media sent several emails and voice messages to Mylan communications and outreach staff both in Morgantown and the Pittsburgh headquarters regarding the fate of the West Virginia employees and operations as part of the merger, but they were not returned in time for this report.
A worldwide map briefly presented during the webinar of the new Mylan/Upjohn combined company operations and sites did list Morgantown as well as Pittsburgh but no other details for the Mountain State regarding the status of jobs or scale of operations.
Eldon Callen, vice president of governmental affairs for the Morgantown Area Chamber of Commerce, said he was aware of the merger Monday but not what this will mean for jobs. He said he was at first worried that this could mean more layoffs. However, he expressed confidence this could be a good thing and that those jobs are still in a stable position.
“Their decision to keep the Pittsburgh area headquarters open, I think, shows that the mid-Atlantic market is still viable and that North Central West Virginia is still a good place to do business,” he said. “We need to keep that open and show that it is a good place to do business. In those decisions, it’s anyone’s guess what the future will hold.”
Monongalia County Commissioner Tom Bloom pointed out that as a part of this merger Mylan is the minor company, with its shareholders having 43 percent of the ownership while Pfizer shareholders get the rest, so it’s hard to know what will happen. While it’s very early to tell on a lot of issues, Bloom said he was also encouraged by the retention of the Pittsburgh offices.
“I want to be cautiously optimistic,” he said. “The reputation can only get better with combining with Pfizer, so hopefully this will be a positive situation for the company and our community. I believe right now it’s just too premature until they work things out.”
As with the layoffs in 2018, Bloom said he would like for Mylan reps to again come before the commission to give a status report of where things stand and where they’re going insofar as the local community is concerned. He said he plans on drafting a letter with his fellow commissioners congratulating the partnership while inviting company officials to meet with them.
Under the terms of the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, each Mylan share would be converted into one share of the new company.
Pfizer shareholders would own 57 percent of the combined new company, and Mylan shareholders would own 43 percent. The Boards of Directors of both Mylan and Pfizer have unanimously approved the transaction.
The deal is expected to close in mid-2020, creating the new company which is anticipated to have revenue streams to the tune of $19-$20 billion and have a focus on returning capital to shareholders.
This merger will also be accompanied by leadership changes. For instance, Mylan’s current CEO, Heather Bresch, announced her plans to retire from the company with the closing of the deal. She’s been Mylan’s CEO since 2012 and has been with the company for more than 27 years.
“After much reflection and nearly 28 years of service, I believe this historic milestone in Mylan’s amazing journey is also the right time for me to retire from the company and pursue a new chapter of my own, one that will continue to be focused on serving patients,” she said during a conference call, adding that this merger is the culmination of goals set forth years ago.
“Upon becoming CEO we embarked on an initiative called Healthcare 2020, which was focused on building longterm sustainability to Mylan and exploring opportunities to differentiate the company for success in 2020 and beyond.”
Ken Parks, Mylan’s current chief financial officer, has also agreed to depart upon the deal closing, and a search for the company’s new CFO will begin. However, some Mylan leaders will remain such as current Chairman Robert J. Coury, who will serve as executive chairman of the new company. Rajiv Malik, Mylan’s President, will serve as the new company’s president.
“Over the past year and a half, I have spent a lot of time speaking with and listening attentively to our shareholders. Today’s announcement builds upon many of those meaningful conversations and represents a transformative move for Mylan,” Coury said. “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.”
Michael Goettler, current group president of Upjohn, will be the CEO of the new company, which he said will be unique among other players in the pharmaceutical industry for combining the best of Mylan and Pfizer.
For example, he said combining the traits of both means they can absorb market volatilities at the regional level while still reaching customers in emerging markets such as Asia as well as the more developed ones in Europe and North America. He added that making gains in China in particular was a goal since that country has a population of 1.4 billion with many medical needs going unmet.
“We’ll have an enhance global scale and reach few companies can match,” Goettler said. “I’m honored by the opportunity to lead this new company, which will deliver more medicines to more patients across the globe. I look forward to delivering on that shared commitment by combining Mylan’s broad and diverse portfolio with Upjohn’s iconic, trusted brands and bringing the Mylan growth products to the Upjohn growth markets.”
It also could be key to note that of the 13 positions on the new company’s board of directors, nine will be controlled by current Mylan directors or executives.
by Conor Griffith NCWV Business Editor Jul 29, 2019 0
https://www.wvnews.com/news/wvnews/mylan-pfiz...23c05.html (The deal is expected to close in mid-2020, creating the new company which is anticipated to have revenue streams to the tune of $19-$20 billion)
Read More: https://investorshangout.com/post/view?id=571...6HWYV8BZL)
PITTSBURGH — Mylan Pharmaceuticals announced Monday morning its intention to merge with Upjohn, Pfizer’s off-patent branded and generic established medicines business, to create a new pharmaceutical company which executives said will have unique capabilities across a global reach.
The new company — the name and brand of which have not yet been released pending closure of the deal — will sell the two drug companies’ top products, including Mylan’s EpiPen and Pfizer’s Viagra.
The new business will be domiciled in the United States, incorporated in Delaware and operate global centers in Pittsburgh, Shanghai, China, and Hyderabad, India
Mylan, which was founded in West Virginia and still has a major manufacturing location and research center in Morgantown that employs about 3,000 people, has its headquarters in Pittsburgh.
While much was said during a webinar Monday about how the merger will benefit shareholders and patients, nothing was said of the Morgantown-area operations of what was to become of those employees as part of this merger.
In April 2018, Mylan laid off around 500 employees — mainly in operations, both union and non-union positions which constituted about 15 percent of the Morgantown area workforce — following discussions between company officials and union representatives. This was announced via press release and union officials declined to comment.
Following the announcements, Mylan representatives appeared before the Monongalia County Commission saying the layoffs were a tough decision and came as part of plan to streamline efficiency which was necessary to retain product quality and stabilize operations for the long run.
No site closures or layoffs were announced during the webinar and conference call, but neither were any assurances.
NCWV Media sent several emails and voice messages to Mylan communications and outreach staff both in Morgantown and the Pittsburgh headquarters regarding the fate of the West Virginia employees and operations as part of the merger, but they were not returned in time for this report.
A worldwide map briefly presented during the webinar of the new Mylan/Upjohn combined company operations and sites did list Morgantown as well as Pittsburgh but no other details for the Mountain State regarding the status of jobs or scale of operations.
Eldon Callen, vice president of governmental affairs for the Morgantown Area Chamber of Commerce, said he was aware of the merger Monday but not what this will mean for jobs. He said he was at first worried that this could mean more layoffs. However, he expressed confidence this could be a good thing and that those jobs are still in a stable position.
“Their decision to keep the Pittsburgh area headquarters open, I think, shows that the mid-Atlantic market is still viable and that North Central West Virginia is still a good place to do business,” he said. “We need to keep that open and show that it is a good place to do business. In those decisions, it’s anyone’s guess what the future will hold.”
Monongalia County Commissioner Tom Bloom pointed out that as a part of this merger Mylan is the minor company, with its shareholders having 43 percent of the ownership while Pfizer shareholders get the rest, so it’s hard to know what will happen. While it’s very early to tell on a lot of issues, Bloom said he was also encouraged by the retention of the Pittsburgh offices.
“I want to be cautiously optimistic,” he said. “The reputation can only get better with combining with Pfizer, so hopefully this will be a positive situation for the company and our community. I believe right now it’s just too premature until they work things out.”
As with the layoffs in 2018, Bloom said he would like for Mylan reps to again come before the commission to give a status report of where things stand and where they’re going insofar as the local community is concerned. He said he plans on drafting a letter with his fellow commissioners congratulating the partnership while inviting company officials to meet with them.
Under the terms of the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, each Mylan share would be converted into one share of the new company.
Pfizer shareholders would own 57 percent of the combined new company, and Mylan shareholders would own 43 percent. The Boards of Directors of both Mylan and Pfizer have unanimously approved the transaction.
The deal is expected to close in mid-2020, creating the new company which is anticipated to have revenue streams to the tune of $19-$20 billion and have a focus on returning capital to shareholders.
This merger will also be accompanied by leadership changes. For instance, Mylan’s current CEO, Heather Bresch, announced her plans to retire from the company with the closing of the deal. She’s been Mylan’s CEO since 2012 and has been with the company for more than 27 years.
“After much reflection and nearly 28 years of service, I believe this historic milestone in Mylan’s amazing journey is also the right time for me to retire from the company and pursue a new chapter of my own, one that will continue to be focused on serving patients,” she said during a conference call, adding that this merger is the culmination of goals set forth years ago.
“Upon becoming CEO we embarked on an initiative called Healthcare 2020, which was focused on building longterm sustainability to Mylan and exploring opportunities to differentiate the company for success in 2020 and beyond.”
Ken Parks, Mylan’s current chief financial officer, has also agreed to depart upon the deal closing, and a search for the company’s new CFO will begin. However, some Mylan leaders will remain such as current Chairman Robert J. Coury, who will serve as executive chairman of the new company. Rajiv Malik, Mylan’s President, will serve as the new company’s president.
“Over the past year and a half, I have spent a lot of time speaking with and listening attentively to our shareholders. Today’s announcement builds upon many of those meaningful conversations and represents a transformative move for Mylan,” Coury said. “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.”
Michael Goettler, current group president of Upjohn, will be the CEO of the new company, which he said will be unique among other players in the pharmaceutical industry for combining the best of Mylan and Pfizer.
For example, he said combining the traits of both means they can absorb market volatilities at the regional level while still reaching customers in emerging markets such as Asia as well as the more developed ones in Europe and North America. He added that making gains in China in particular was a goal since that country has a population of 1.4 billion with many medical needs going unmet.
“We’ll have an enhance global scale and reach few companies can match,” Goettler said. “I’m honored by the opportunity to lead this new company, which will deliver more medicines to more patients across the globe. I look forward to delivering on that shared commitment by combining Mylan’s broad and diverse portfolio with Upjohn’s iconic, trusted brands and bringing the Mylan growth products to the Upjohn growth markets.”
It also could be key to note that of the 13 positions on the new company’s board of directors, nine will be controlled by current Mylan directors or executives.
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