Mylan N.V. (NASDAQ: MYL) released its second-quarter financial results before the markets opened on Monday. The pharmaceutical giant also announced a major update to its business involving Pfizer Inc. (NYSE: PFE) and that CEO Heather Bresch is resigning.

The firm reported $1.03 in earnings per share (EPS) and $2.85 billion in revenue for the quarter, which compares with consensus estimates that called for $0.94 in EPS and $2.82 billion in revenue. The same period of last year reportedly had $1.07 in EPS and $2.81 billion in revenue.

In terms of its segments, Mylan reported as follows:

• Net sales from North America segment totaled $1.02 billion in the current quarter, an increase of $22.6 million or 2% when compared to the prior year period. This increase was primarily driven by new product sales partially offset by lower volumes of existing products.
• Net sales from Europe segment totaled $989.6 million in the current quarter, a decrease of $1.0 million, when compared to the prior year period. This decrease was primarily the result of the unfavorable impact of foreign currency translation of approximately $59.5 million or 6%.
• Net sales from Rest of World segment totaled $805.2 million in the current quarter, an increase of $41.1 million or 5% when compared to the prior year period. This increase was primarily the result of higher volumes of existing products primarily driven by products sold in China and new product sales in Australia and emerging markets.

As for the business update, Mylan and Pfizer announced that Mylan will combine with Upjohn, Pfizer’s off-patent branded and generic established medicines business, creating a new global pharmaceutical company. Following the completion of this deal, Heather Bresch will step down from her role as CEO at Mylan.

Under the terms of the agreement, which is structured as an all-stock transaction, each Mylan share would be converted into one share of the new company. Pfizer shareholders would own 57% of the combined new company and Mylan shareholders would own 43%.

Upjohn will bring brands, such as Lipitor (atorvastatin calcium), Celebrex (celecoxib) and Viagra (sildenafil), and proven commercialization capabilities, including leadership positions in China and other emerging markets, to this new firm.

The new company is expected to have pro forma 2020 revenues of $19 billion to $20 billion. Pro forma 2020 adjusted EBITDA is anticipated to be in the range of $7.5 billion to $8.0 billion, including phased synergies of roughly $1 billion annually to be realized by 2023.

Finally, the new company will be led by Mylan’s current board chair, Robert J. Coury, who will serve as executive chair of the new company. Michael Goettler, current group president at Upjohn, will serve as CEO. The board of directors will include its executive chair and its CEO, as well as eight members designated by Mylan and three members designated by Pfizer, for a total of 13 members.

Shares of Mylan closed Friday at $18.46, in a 52-week range of $16.63 to $39.59. The consensus price target is $28.28. Following the announcement, the stock was up about 14% at $21.05 in early trading indications Monday.

Pfizer closed Friday at $43.09 a share. The 52-week range is $38.14 to $46.47, and the consensus price target is $45.75. The stock was down 3% at $41.65 in Monday’s premarket.

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