Mylan-Upjohn merger clears Mylan's shareholders
Mylan is one step closer to its proposed combination with Pfizer's Upjohn division to create a new company called Viatris. Mylan on Tuesday announced that its shareholders voted to approve the proposed transaction, with roughly 99.6% of votes cast were in favor of the combination.
Executives, including Mylan's current executive chairman and future executive chairman of Viatris, Robert Coury, are hailing the wide support as a mandate for the company's strategy.
“The near unanimous support we have received from our shareholders with 99.6% of shares voted in favor of this transaction truly validates the extensive analysis and time invested by the board's strategic review committee, and the full board, in identifying the right opportunity to unlock the true value of our one-of-a-kind platform as well as accelerate Mylan's next exciting phase of growth,” Coury said. “The overwhelming endorsement we received from shareholders only further bolsters our confidence in the value that we believe the new company will deliver, and we are very excited to soon create Viatris, expected in the fourth quarter of this year.”
Coury said that Viatris' business model will be focused on total shareholder return from the outset. That model also includes a new Global Healthcare Gateway, which will offer partners access to worldwide patients and markets. "With an enhanced balance sheet and financial flexibility, we will be able to implement a more shareholder-friendly capital allocation policy starting with a dividend of at least 25% of our free cash flow following Viatris' first full quarter after close," Coury said. "With this significant milestone behind us and our permanent financing now in place, we look forward to obtaining the remaining regulatory approvals and completing the transaction."
Mylan will file the vote results in a Form 8-K with the U.S. Securities and Exchange Commission.The transaction is subject to customary closing conditions, including receipt of the remaining required regulatory approvals.