Pfizer (NYSE:PFE) is taking the route of in-organic growth in order to enhance its falling revenues. The company has been extremely active in the M&A world and it has added some interesting drugs to the portfolio. Most important of these acquisitions is the Medivation (NASDAQ:MDVN), which will go a long way in strengthening its oncology offerings. Pfizer's overall revenue growth has been negative over the last five years. This trend has also been negative in EPS as well as EBITDA in the last three years. These developments have pushed the company to add some drugs to the portfolio that can bring in big bucks for the next ten years.
Medivation ticks all these boxes. The company has a popular drug which is still to reach its full potential. There is a considerable potential to grow sales and earnings further and the patent protection is long enough for Pfizer to enjoy its benefits exclusively. So, this transaction was a no-brainer after the merger with Allergan (NYSE:AGN) failed to materialize. The details of the deal are in favor of Medivation shareholders if we take a short-term view. However, in the long-term, this looks like a good strategic move by Pfizer.
