MORGANTOWN – Mylan and Upjohn announced on Tuesday that the name of their new joint company will be Viatris.
Mylan Chairman Robert J. Coury, who will serve as executive chairman of Viatris, said in the announcement, “We wanted a name that would differentiate our new company and clearly explain how we will be a champion for global health. We are creating a company unlike any other – a company focused on building a more hopeful and sustainable healthcare journey, empowering patients to live healthier at every stage of life.”
Mylan and Upjohn explain that the name is derived from Latin: “via,” a path; and “tris,” three. So, Viatris is a path to three core goals: “expanding access to medicines, leading by innovating to meet patient needs, and being a trusted partner for the healthcare community worldwide.”
Upjohn, a Pfizer subsidiary, markets Pfizer’s Viagra, for treating erectile dysfunction. Asked about the similarity of the names, Pfizer spokeswoman Patricia Kelly said, “Any similarity is a coincidence since the name was derived from the Latin.” Mylan also confirmed that. “There is no relation between the name of the product, Viagra, and the new company name, Viatris.”
Michael Goettler, group president, Upjohn, who will serve as Viatris CEO, commented, “The name Viatris communicates the strength of our companies’ combined heritage and our shared goal to provide the highest-quality medicines to the most patients possible. We have an opportunity to deliver better health, better care and better value for patients and partners around the world.”
As previously reported, Upjohn is Pfizer’s off-patent branded and generics subsidiary. It produces such drugs as Lipitor, for cholesterol; Norvasc, for high blood pressure; Lyrica, for nerve pain; and Viagra. It markets in more than 120 countries. It is headquartered in China and employs more than 12,300 people.
Mylan markets more than 7,500 products in more than 165 countries and employs more 35,000 people.
Both companies see advantages in the merger. Upjohn wants to sharpen its focus on innovative medicines and Mylan wants to broaden its Asia-Pacific presence, particularly in China, and expand its drug portfolio.
The companies said in Tuesday’s announcement they expect, in the coming months, Mylan shareholders will vote on the proposed combination.
They expect to release more information regarding Viatris, including the company’s full executive management team, board of directors, stock symbol and logo at a later date. The new name will be effective upon closing of the combination, which is expected to occur in mid-2020. The two companies will continue to operate as independent, separate organizations until close.
Viatris is expected to generate about $19 billion to $20 billion in revenue, with an estimated annual synergies – cost savings realized by pooling resources and trimming redundancies – reaching $1 billion by 2023. Mylan’s current revenues are about $12.5 billion, with Upjohn’s hitting $8 billion. They foresee about $3 billion in new revenue from products expected to launch by 2023.
Pfizer shareholders will own 57% of Viatris and Mylan shareholders will own 43%. The transaction is subject to approval by Mylan shareholders, but no vote is required by Pfizer shareholders.
The board of directors will include Coury and Goettler along with eight members designated by Mylan and three members designated by Pfizer, for a total of 13 members.
The new company will be based in the U.S. and incorporated in Delaware and will operate Global Centers in Pittsburgh; Shanghai, China, and Hyderabad, India.
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