Mylan (MYL) Acquires Certain Diskus Rights from Pfizer (PFE)
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Mylan Inc. (Nasdaq: MYL) today announced that it has entered into an agreement with Pfizer (NYSE: PFE) for the exclusive worldwide rights to develop, manufacture and commercialize Pfizer's generic equivalent to GlaxoSmithKline's (NYSE: GSK) Advair Diskus and Seretide Diskus incorporating Pfizer's proprietary dry powder inhaler delivery platform. Advair Diskus and Seretideu Diskus are inhaled fixed-dose combinations of Fluticasone Propionate and Salmeterol delivered via a dry powder inhaler and are used to treat asthma and COPD (chronic obstructive pulmonary disorder).
In addition, Pfizer will grant Mylan rights to its dry-powder delivery platform to develop and commercialize additional brand and generic pharmaceutical products, including rights of negotiation for certain existing Pfizer compounds currently in various stages of development.
In connection with the transaction, Mylan will employ select key members of the former Pfizer respiratory inhalation development team based at Discovery Park in Sandwich, U.K., where Mylan will establish a respiratory development division. Some employees also will be based in Cambridge, U.K.
As part of the agreement, Mylan will pay for remaining development and capital expenditures to bring products to market. Pfizer will be due a payment of $17.5 million at closing of the transaction and will be eligible for additional payments, contingent upon regulatory and commercial success, including profit sharing. Mylan will have exclusive commercialization rights for the generic equivalent to GlaxoSmithKline's Advair® Diskus and Seretide® Diskus in the U.S., Canada, Australia, New Zealand and in the European Union and European Free Trade Association countries. In the rest of the world, Mylan and Pfizer will have co-promotion rights to the product. All other financial terms and product details remain confidential.
Mylan expects to finance the costs of the program with available liquidity and does not expect the program to have any impact on Mylan's guidance for 2011 or its financial targets through 2013. The transaction is subject to clearance under the Hart-Scott Rodino Antitrust Improvements Act and is expected to close by year-end.
In addition, Pfizer will grant Mylan rights to its dry-powder delivery platform to develop and commercialize additional brand and generic pharmaceutical products, including rights of negotiation for certain existing Pfizer compounds currently in various stages of development.
In connection with the transaction, Mylan will employ select key members of the former Pfizer respiratory inhalation development team based at Discovery Park in Sandwich, U.K., where Mylan will establish a respiratory development division. Some employees also will be based in Cambridge, U.K.
As part of the agreement, Mylan will pay for remaining development and capital expenditures to bring products to market. Pfizer will be due a payment of $17.5 million at closing of the transaction and will be eligible for additional payments, contingent upon regulatory and commercial success, including profit sharing. Mylan will have exclusive commercialization rights for the generic equivalent to GlaxoSmithKline's Advair® Diskus and Seretide® Diskus in the U.S., Canada, Australia, New Zealand and in the European Union and European Free Trade Association countries. In the rest of the world, Mylan and Pfizer will have co-promotion rights to the product. All other financial terms and product details remain confidential.
Mylan expects to finance the costs of the program with available liquidity and does not expect the program to have any impact on Mylan's guidance for 2011 or its financial targets through 2013. The transaction is subject to clearance under the Hart-Scott Rodino Antitrust Improvements Act and is expected to close by year-end.
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