Pfizer set to announce Mylan merger and spin-off

It is expected that Pfizer will announce its plan of a $10bn deal to acquire genetics firm Mylan, merge it with its own off-patent operation and then spin the newly formed division.

The buzz around this potential deal arose at the end of last week and these rumours seem further supported by Pfizer announcing its Q2 results a day in advance from its original date with the expected Mylan transaction set to replace the Q2 results presentation.

This deal will help streamline Pfizer, creating a focus of its efforts for profitability and a means of revenue which it can utilize for larger more lucrative deals in the pharma/biotech field.

This sell-off manoevere is a strategy that has already been implemented by newly stated CEO Albert Bourla, with Pfizer already having agreed to a deal with GSK to create a new spin-off consumer health division.

Mylan’s shares prices have risen in the past couple of days by 30%, since the rumours began around this deal. If the deal were to follow through it would create a generics giant that would be set o rival companies like Teva, Perrigo and Sandoz in size.

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