Pfizer will merge its off-patent drug business with generic drugmaker Mylan, a move that would create a lower-priced medication powerhouse, according to The Wall Street Journal.
The combined company would sell well-known branded drugs, including Mylan's EpiPen and Pfizer's Viagra and cholesterol pill Lipitor. Together, the companies could generate up to $20 billion in annual sales, according to CNBC.
Under the agreement, structured as an all-stock deal, Pfizer shareholders would own about 57 percent of the new company, and Mylan's shareholders would get 43 percent.
Pfizer will divest its off-patent drug business, Upjohn, before combining it with Mylan, according to the report.
The new company would be headquartered in the U.S. and would be run by Pfizer's Michael Goettler, president of Pfizer's off-patent drug business.
Mylan's chairman, Robert Coury, would be executive chairman, and Mylan CEO Heather Bresch would step down.
The deal must obtain necessary approvals.