Followers | 11 |
Posts | 1455 |
Boards Moderated | 0 |
Alias Born | 02/01/2013 |
![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Thursday, January 16, 2014 4:04:55 PM
— 3:06 AM ET 01/14/2014
By Nadia Damouni, Jessica Toonkel and Soyoung Kim
NEW YORK (Reuters) - Drugmakers Valeant Pharmaceuticals International Inc , Actavis Plc and Mylan Inc have all expressed interest in buying Pfizer Inc's (PFE) branded generics business, but no active discussions are going on at this time, according to three people close to the matter.
The "established products" unit, which makes off-patent drugs, had global sales of $7 billion in the first nine months of 2013, accounting for 18 percent of Pfizer's revenue. Pfizer said in July it planned to separate its commercial operations into three units -- two mainly for patent-protected brands and the third for generics.
According to the people close to the matter, Pfizer is aware of each of the companies' interest but is not yet ready to entertain a deal as it prepares the groundwork for a potential separation of the generics business. It has said the review could take three years.
Pfizer, Valeant, Actavis and Mylan all declined to comment. All the sources asked not to be named because they were not authorized to speak with the media.
A deal for the business -- which houses medicines that have lost market exclusivity, as well as mature, patent-protected products that
are expected to lose exclusivity through 2015 -- could catapult a buyer like Valeant into the ranks of the biggest pharmaceutical
companies in the world, but several hurdles remain.
The Pfizer generics business is far bigger than the three pharmaceutical companies.
Valeant had $3.7 billion in revenue in the first nine months of 2013, while Mylan and Actavis posted revenues of $5.10 billion and $5.9 billion, respectively.
Structuring a deal would also be a challenge because a sale could incur heavy taxes for Pfizer. One way to reduce the tax bill would be to use a structure known as a Reverse Morris Trust, according to the people close to the matter.
In that structure, a company spins off a unit that it wants to divest and that unit merges with a smaller company, with the smaller company running the combined entity. Overall, the transaction allows a parent company to sell a subsidiary in a tax-free manner.
It is not clear whether Pfizer would entertain such a deal structure.
Another challenge for potential buyers is the lack of historical financial information for the generics business, as Pfizer's efforts to split its commercial operations is a work in progress.
Recent PFE News
- Pfizer and BioNTech Receive Positive CHMP Opinion for Omicron JN.1-adapted COVID-19 Vaccine in the European Union • Business Wire • 06/27/2024 02:30:00 PM
- Pfizer Declares Third-Quarter 2024 Dividend • Business Wire • 06/26/2024 08:30:00 PM
- Pfizer Invites Public to View and Listen to Webcast of July 30 Conference Call with Analysts • Business Wire • 06/18/2024 02:00:00 PM
- Fisker Files for Bankruptcy, Chegg Stocks Rise on 23% Workforce Reduction, and More • IH Market News • 06/18/2024 11:02:13 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 01:41:51 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 01:41:49 AM
- Adobe Soars 15% Pre-Market; Visa and Mastercard Encounter Hurdles in $30 Billion Agreement, and More • IH Market News • 06/14/2024 11:21:47 AM
- ELREXFIO™ Shows Median Overall Survival of More Than Two Years in People with Relapsed or Refractory Multiple Myeloma • Business Wire • 06/14/2024 07:00:00 AM
- Pfizer Provides Update on Phase 3 Study of Investigational Gene Therapy for Ambulatory Boys with Duchenne Muscular Dystrophy • Business Wire • 06/12/2024 08:30:00 PM
- Form 11-K - Annual report of employee stock purchase, savings and similar plans • Edgar (US Regulatory) • 06/11/2024 06:43:52 PM
- Form 11-K - Annual report of employee stock purchase, savings and similar plans • Edgar (US Regulatory) • 06/11/2024 06:39:34 PM
- Apple Showcases AI at WWDC 2024, Nvidia Stock Split Starts Today, and More News • IH Market News • 06/10/2024 11:29:44 AM
- Relay Therapeutics Announces Clinical Trial Collaboration with Pfizer to Evaluate Atirmociclib in Combination with RLY-2608 • GlobeNewswire Inc. • 06/05/2024 08:05:03 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:02:54 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:02:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/03/2024 10:34:09 PM
- Pfizer Invites Public to Listen to Webcast of Pfizer Discussion at Healthcare Conference • Business Wire • 06/03/2024 02:00:00 PM
- Takeda and Pfizer Announce Four-Year Results from Positive Phase 3 HD21 Trial of Additional ADCETRIS® (brentuximab vedotin) Combination in Frontline Hodgkin Lymphoma • Business Wire • 06/01/2024 12:00:00 PM
- Pfizer’s ADCETRIS® Regimen Produces Clinically Meaningful Improvement in Overall Survival in Patients with Relapsed/Refractory Diffuse Large B-cell Lymphoma (DLBCL) • Business Wire • 06/01/2024 12:00:00 PM
- Form SD - Specialized disclosure report • Edgar (US Regulatory) • 05/31/2024 04:15:11 PM
- Pfizer’s LORBRENA® CROWN Study Shows Majority of Patients with ALK-Positive Advanced Lung Cancer Living Beyond Five Years Without Disease Progression • Business Wire • 05/31/2024 12:00:00 PM
- OpenAI and News Corp Seal Partnership, DuPont de Nemours Announces Division, and More News • IH Market News • 05/23/2024 11:40:51 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/22/2024 04:39:37 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/16/2024 03:55:06 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/16/2024 03:55:03 PM
VAYK Exited Caribbean Investments for $320,000 Profit • VAYK • Jun 27, 2024 9:00 AM
North Bay Resources Announces Successful Flotation Cell Test at Bishop Gold Mill, Inyo County, California • NBRI • Jun 27, 2024 9:00 AM
Branded Legacy, Inc. and Hemp Emu Announce Strategic Partnership to Enhance CBD Product Manufacturing • BLEG • Jun 27, 2024 8:30 AM
POET Wins "Best Optical AI Solution" in 2024 AI Breakthrough Awards Program • POET • Jun 26, 2024 10:09 AM
HealthLynked Promotes Bill Crupi to Chief Operating Officer • HLYK • Jun 26, 2024 8:00 AM
Bantec's Howco Short Term Department of Defense Contract Wins Will Exceed $1,100,000 for the current Quarter • BANT • Jun 25, 2024 10:00 AM