Pfizer/Mylan (Viatris) Spin-off and Merger Notes

June 3, 2021 Update


October 23, 2020 Notes

  • Pfizer and Mylan recently announced that the European Commission has approved its merger.
  • Mylan gave a recent presentation on the new company, Viatris, on August 2020.
  • Mylan confirmed it intends to pay a dividend of at least 25% of free cash flow. The company expects free cash flow of >$4BN. It also said it expects to pay out ~$4BN in dividends in the 4 years following the initiation of the dividend. This management expect FCF will be relatively stable.
  • Importantly, the dividend will not be initiated until after the first full quarter quarter post close. The transaction is expected to close in Q4 2020. Guidance implies that dividend will be initiated in Q2 2021. That will be a catalyst. But don’t have to own until shortly before the dividend is initiated.