Drugmakers Mylan, Pfizer delay merger due to coronavirus outbreak

[March 26, 2020]    (Reuters) - Drugmaker Mylan NV's <MYL.O> merger with Pfizer Inc's <PFE.N> off-patent branded drug unit, Upjohn, will now close in the second half of this year, the companies said on Thursday, blaming the coronavirus pandemic for the delay.

A logo for Pfizer is displayed on a monitor on the floor at the New York Stock Exchange (NYSE) in New York, U.S., July 29, 2019. REUTERS/Brendan McDermid

Due to restrictions on large gatherings, the general meeting of shareholders to approve certain matters for the deal to go through has been postponed to June 30, Mylan said.

There were no other changes to previously announced terms or plans pertaining to the deal, previously expected to close in mid-2020, the companies said. (https://reut.rs/2Jfcelr)

The merger, which will bring blockbuster treatments Viagra and Lipitor from Pfizer under one umbrella with Mylan's EpiPen, is part of years-long effort by Pfizer to split into three parts - innovative medicines, lower margin off-patent drugs facing generic competition and consumer healthcare.

The combined company is expected to have 2020 revenue of $19 billion to $20 billion.

Shares of both Pfizer and Mylan were down about 1% premarket.

(Reporting by Trisha Roy in Bengaluru; Editing by Shinjini Ganguli)

[© 2020 Thomson Reuters. All rights reserved.]

Copyright 2020 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.