Shares of Mylan (MYL - Get Report) were virtually unmoved by the Friday announcement that it is expanding its generics drug division with the $950 million acquisition of the generics unit of Renaissance Acquisition Holdings.

The company, which has a market cap of $19.57 billion, was trading at $38.50 midday Friday.

"It won't have a huge effect," an analyst said in a phone interview. "They're a company with $10 billion in sales."

The Pittsburgh-based pharmaceutical company, which had previously made bids for Perrigo  (PRGO - Get Report)  announced May 13 that it will acquire the non-sterile, topicals-focused speciality and generics business of Renaissance Acquisition Holdings for $950 million in cash.

"This is an area they've been trying to get into for a couple of years," an analyst said in a phone interview. "It's a market with limited competition, high margins, few players and where there's been tremendous asset repricing."

Perrigo, a generics drugmaker based in Ireland, was initially the apple of Mylan's eye. The company offered $29 billion for the generics drugmaker in April 2015, but was beaten out by Teva Pharmaceuticals (TEVA - Get Report) , who paid $40.5 billion in the deal.

Renaissance, apparently, was an opportune second choice. According to the analyst, Renaissance comes at a valuable price for Mylan. In 2015, the generics unit reported $370 million in earnings.

"On the surface, you see it looks pretty cheap when you divide it by sales," the analyst said.

The analyst cautioned investors to not buy stock in Mylan right away. Though the $370 million in sales in 2015 may be attractive, the analyst said it's unlikely that Mylan will be able to keep it up in 2016.

The generic drug business is a lucrative one that Mylan has been expanding into for the past few years with acquisitions of Abbott Laboratories (ABT - Get Report)  generics business in 2014 and Merck (MRK - Get Report) 's generics business in 2007.

"There's a lot of money being made here," the analyst said. "They've made no secret that they want to be in this market."

So what's next for Mylan? The company will likely do smaller bolt-on acquisitions, the analyst said.

"I think they're in a position to do these sorts of bolt on fully functioning transactions," the analyst said. "They still have a large deal pending."

Mylan's $9.9 billion acquisition of Meda AB, a Swedish specialty pharmaceutical company, is still pending. The deal was announced February 11, although Mylan made an earlier offer to Meda that was initially rebuffed.

Mylan and Renaissance did not immediately return calls for comment on the deal.