It’s been more than 10 years since the drug maker Pfizer bought Tylenol, but the company is now the second-largest U.S. drug maker, after Turing Pharmaceuticals.
The two companies together have $1.7 trillion in sales, according to Forbes.
The new deal gives Pfizer a foothold in the $200 billion market, as the two companies compete for the lucrative supply of painkillers for the millions of Americans who rely on their own medicines for daily ailments.
Pfizer is the largest generic drugmaker in the U.K., but its business has slowed since the launch of its blockbuster OxyContin brand in 2009.
The deal with Tylinol would give the company a competitive edge, and help it stay competitive with the competition.
Pfizers CEO David Perdue said in a statement: “This is a win-win for the American people and the pharma industry as a whole.
Pfisers innovative brand and high-quality products are a big part of why we have such a strong position.”
Pfizer said the company will have access to the U and UK versions of the drug, which will be available in the United States by the end of the year.
The company’s stock has gained roughly 8 percent since its January price of $10.25 per share, after surging nearly 20 percent this year.
That’s a huge jump from its average price of about $8.00 per share for the year, according a Morningstar study.
The stock’s market cap now sits at $10 billion.
It’s also the biggest drugmaker overall, with $1,788 billion in revenue.
The Pfizer deal will give the drugmaker more than $1 billion in new cash to invest in the company.
It also will give Pfizer an additional $1 million in stock options to buy back the stock at a discount of up to 60 percent.
In a press release, Tylens CEO Richard Luszczyn said the deal is part of the company’s strategy to “deliver better value for our customers and to create value for investors.”
“We are thrilled that Pfizer has agreed to buy Tylins drug portfolio in a way that supports our business growth,” he said.
“Our portfolio is a key component of our business strategy to grow our business and our global presence.”
Pfizers deal with a lot of competition in the area of pain medications.
The drugmaker has been losing money for years.
It reported a net loss of $3.9 billion in 2016, down from a net profit of $4.2 billion in 2015.
However, that still represents a 35 percent decline from the year before, when it reported a $11.9 million loss.
Pfitzens loss for the third quarter of 2016 was also worse than the same period a year earlier.
The Drug Enforcement Administration reported a record $3 billion in opioid painkiller abuse in the quarter, up from $1 Billion in the year prior.
In the U, the price of OxyContin has plummeted since the company was bought by Pfizer in 2009, from $60 to $40 a pill.
The price of Tylol has also fallen significantly.
Pfizns price is expected to rise slightly, to $60 per pill, according the company, and its drugmakers share of the U- and UK-market will rise to about 75 percent from 65 percent.