After a failed bid for Perrigo, Mylan has moved forward with a $9.9bn deal to merge with Swedish pharma company Meda, boosting its range of branded and generic pharmaceuticals. The deal also gives Mylan a better position in the market for over-the-counter (OTC) medicines.

After the deal goes through, the Mylan/Meda OTC business will have sales of around $1bn per year. OTC medicines have become an attractive area of the pharma industry as their growth has outstripped the prescription drug sector, mainly driven by emerging markets.

Meda’s key products including allergy therapy Dymista (azelastine/fluticasone) and Elidel (pimecrolimus) for dermatitis and eczema are set to benefit from Mylan’s greater international scale. The deal reduces Mylan’s reliance on generic drugs with the addition of specialty brands that are less prone to pricing pressure and competition.

The combined company will have collective 2015 sales of approximately $11.8 billion.

“Since 2014, the rationale for this combination has only been further enhanced by Meda’s acquisition of Rottapharm and our acquisition of EPD, with the ability to leverage this infrastructure especially in Europe and emerging markets,” said Heather Bresch, chief executive officer, Mylan. “We’re gaining a more balanced and expanded global footprint with an even stronger presence across Europe, a leading U.S. specialty business, and an expanded presence in emerging markets.”