Pfizer Closes in on a Major Spinoff
Big pharma titan Pfizer (NYSE: PFE) is on a roll. Since swapping out former CEO Ian Read for the more forward-thinking Albert Bourla earlier this year, the company has advanced a proposed joint venture with GlaxoSmithKline designed to dump its underperforming consumer healthcare unit, and acquired the promising oncology company Array BioPharma in a cost-effective $11.4 billion deal. Now, Pfizer is on the cusp of finally addressing its biggest overhang -- its vast portfolio of declining former star medicines.
Over the weekend, The Wall Street Journal reported that Pfizer is negotiating a deal to combine its off-patent drug business with generic drug giant Mylan (NASDAQ: MYL) in an all-stock transaction. Mylan shareholders will reportedly own approximately 43% of the new venture, and Pfizer's shareholders will own the other 57%. Pfizer will also walk away with a healthy $12 billion in proceeds from the sale of debt. The new company will be renamed and rebranded after the deal officially closes.
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