The European Commission has given its blessing for the proposed merger between global pharma Mylan and Upjohn, Pfizer’s off-patent branded and generic established medicines arm.
However, the Agency did stress that the approval is conditional on the divestment of Mylan’s business for certain generic medicines.
“Ensuring that patients and hospitals have access to medicines at fair and competitive prices, as well as ensuring security of supply, is always a key priority which resonates even more strongly in the current challenging context,” said executive vice president Margrethe Vestager, who is responsible for competition policy.
“Our decision ensures that the merger between Mylan and Upjohn does not harm competition, thus preserving competitive access to certain genericised medicines for national health services and European citizens”.
The transaction will lead to the combination of Mylan, one of the top five generic suppliers in the EEA, with the originator Upjohn, whose products have lost exclusivity following patent expiries.
After completion of the merger, Pfizer shareholders will own 57% of the combined new company, and Mylan shareholders 43%.
The new company – which is to be renamed and rebranded at close – is expected to have pro forma 2020 revenues of $19-$20 billion.