Pfizer is expected to close a deal with Mylan on Wednesday, a move that would create the world’s largest drugmaker and a global player in the lucrative, high-margin world of prescription drugs.
The deal would bring Pfizer’s portfolio of generics and specialty drugs under the Mylan umbrella, and would give Pfizer more leverage in the global pharmaceutical market than it has had for some time.
Mylan’s stock has gained more than 60% since the deal was announced in November.
The stock is currently trading at $42.85, up more than 100% from its November close.
Pfizer has long been an investor in generics, with some of its investments including Novartis AG and Sanofi SA.
Myland also owns several drugs including Sovaldi and the flu shot.
Pfizers deal with the combined company could give it a better shot at competing in the world of generic drugs.
“Pfizer’s new strategy is a significant step in our continued growth and innovation,” Mylan Chief Executive Officer Stephen Ive said in a statement.
“We believe this is a critical opportunity to accelerate growth, scale and bring more options to our customers, our partners and our employees.”
Preliminary discussions are underway and a definitive agreement is expected in the coming weeks, Mylan said.
Pfizers acquisition of Mylan will help the company expand its global pharmaceutical portfolio.
Mylanta, a unit of Pfizer that was acquired by Mylan in 2013, is currently the world leader in the generics market, with the majority of its drugs sold in the US.
Mylan’s move comes as the US faces a growing number of generic-drug shortages.
Last month, the Food and Drug Administration (FDA) reported that nearly 3 million US prescriptions had been filled in January, a nearly 20% jump from a year earlier.
The US has been hit particularly hard by the coronavirus pandemic.
The number of people in urgent need of life-saving medications rose to nearly 17 million in January from just over 10 million in February, according to data from the FDA.
Ive said Mylan was prepared to compete for patients who were unable to get generic drugs and said the combined drugmaker’s focus would be to “continue to focus on innovation, innovation, and the future of medicines”.
“We believe that the combined Pfizer/Mylan company will deliver value for the American people and provide additional opportunities to innovate and expand our company’s portfolio,” Ive added.
In a press conference in September, Mylantic CEO Mark DeGrave told investors that the company was targeting a revenue of $1.8 billion by the end of 2021.
Last month, Mylon announced a plan to raise $1 billion from investors including venture capital firm Kleiner Perkins Caufield & Byers and private equity firm Bessemer Venture Partners.
According to the company’s most recent financials, Mylavs sales were $6.9 billion in the third quarter of 2017, up 3% year-on-year.