PFIZER,MYLAN SEAL DEAL

Pfizer agreed on Monday to combine its off-patent drugs division ,which controls treatments such as the statin Lipitor ,with pharmaceutical company Mylan ,creating a potential powerhouse in the business of medicines without  patent protections.
                  The transaction comes as falling prices increase pressure on generic drug makers,a development that has been mostly overlooked in the US as a consumers grapple with the escalating price of branded treatments.The deal also raises questions about whether it will spur other acquisitions in the sector .
               Generic drugmakers such as Mylan and Tava have struggled in part because pharmacies and wholesalers have been teaming up, increasing their power to bargain for lower prices .that has forced such companies to consider mergers as a way to regain leverage .
              Pfizer has shifted its focus in recent years to treatments expect to enjoy patent protections for years .that has meant striking big deals to acquire promising new drugs, like its $10.6 billion take over bid last month for Array Bio-Pharma ,


WHY THE DEAL
1  Generic drug prices falling under the pressure from wholesalers and pharmacies
2  Merger of Pfizer's off-patent business with Mylan is expected to give them greater pricing power
3  Pfizer focussed on patent products ,Gradully dis posing low-margin business.