Pfizer and the Spinoff of Upjohn

In July 2019, Pfizer announced that it would spin off its Upjohn division and merge it with Mylan, a specialty and generic drugs firm.  Within Pfizer, the Upjohn business unit was a conduit for Pfizer drugs going off-patent.  Divesting the Upjohn business would allow Pfizer to focus on innovative drugs and exit the generics sector.  Combining Upjohn with Mylan would create a new company that would compete in branded prescription drugs, generics, biosimilars, and over-the-counter medicines. Cost synergies from the merger of $1 billion were projected.  Under the terms of the agreement, each Mylan share would be converted into one share of the new company. Pfizer shareholders would own 57% of the combined new company and Mylan shareholders would own 43%.