Major pharmaceutical companies merge as Pfizer acquires Mylan.

Pfizer, the leading pharmaceutical company in the US, is set to acquire Mylan, headquartered in Canonsburg. This merger will result in the creation of a new entity that combines Pfizer’s specialty drug division with Mylan’s focus on generic pharmaceuticals. While Pfizer’s Upjohn division sells popular drugs like Lipitor and Viagra, which have lost their patent protection, the collaboration with Mylan, a company valued at approximately $10 billion, will birth a fresh venture. The name of the merged company has not been revealed yet.

This acquisition is a strategic move for Pfizer and is anticipated to be a lengthy process. The finalization of the deal is predicted to occur in the middle of 2020. The projected combined revenues of the new entity in 2020 are expected to surpass $19 billion, with operations spanning 165 countries.

While this development is significant in the pharmaceutical industry, it was somewhat expected as Pfizer and Mylan have had a longstanding relationship. Pfizer has been the manufacturer of Mylan’s EpiPen, a product that stirred controversy when Mylan hiked the price of two EpiPens to $600, triggering a Congressional inquiry. The deepening collaboration between the two companies has paved the way for this acquisition.