Pfizer's Currency, Patent Pressures Boost Allergan Merger's Importance

Pfizer Inc.'s pending $160bn merger with Allergan PLC may be its best shot at significant revenue growth this year, since the company's 2015 revenue and earnings fell below 2014 totals due to foreign currency impacts and the loss of patent exclusivity for multiple products – factors that again could lead to flat growth during the current year, despite meaningful sales gains for certain products.

New drugs and current best-sellers will contribute to sales growth in 2016, as they did last year, but Pfizer expects to take a $2.3bn hit from unfavorable foreign currency exchange rates and experience $2.3bn in sales losses due to generic competition for its branded drugs. Since the $17bn Hospira Inc