US drugs firm Mylan completes $1.75 bln India buyout

US generic drug specialist Mylan said Thursday it had completed its $1.75 billion acquisition of a unit of India's Strides Arcolab, boosting its presence in the high-growth injectable drugs market.

The Pennsylvania-based Mylan confirmed the buyout of Agila Specialities, which makes injectables, with some restructuring of the since it was first announced in February.

"The acquisition of Agila will create a global injectables leader, expanding and strengthening Mylan's existing injectables platform and portfolio, and providing it entry into exciting, new geographic markets," said Mylan chief executive Heather Bresch in a statement.

The deal will make Mylan one of the top three global players in injectables, the US firm has said, bringing the number of manufacturing sites to 13 across six countries.

The size of the buyout had earlier been estimated at $1.6 billion, but Bangalore-based Strides said an extra $150 million was required due to acquisition costs and regulatory commitments, after it received a warning letter from the US Food and Drug Administration concerning another unit in Bangalore.

The deal now includes a "hold back" provision of $250 million of the total price, to be paid to Strides only if it fulfils some regulatory conditions.

Strides' shares fell as much as 14.25 percent to a day's low of 845.5 rupees in Thursday's trade on the Bombay Stock Exchange owing to changes in the terms of the deal, dealers said.

The global generic injectable drugs market is expected to grow at an annual rate of 13 percent between 2011 and 2017, driven by patent expiries and outpacing most other dosage forms, the US firm said.

add to favorites email to friend print save as pdf

Related Stories

US drug firm Mylan to buy Indian firm for $1.6 bn

Feb 27, 2013

US generic drugs specialist Mylan said Thursday it would buy a unit of India's pharma firm Strides Arcolab for $1.6 billion, boosting its presence in the high-growth injectable drugs market.

Generic versions of plavix approved

May 18, 2012

(HealthDay) -- The first generic versions of Plavix (clopidogrel bisulfate) have been approved by the U.S. Food and Drug Administration.

Recommended for you

Vaccine proves effective against deadly Middle East virus

17 hours ago

(Medical Xpress)—A vaccine developed by an international team of scientists led by the University of Pittsburgh School of Medicine successfully protects mice against a contagious and deadly virus spreading across the Middle ...

New study looks at improving vaccine awareness

18 hours ago

The best medical therapies won't do much good if the public abstains from using them. Resistance to life-saving interventions may have a variety of root causes, particularly if the biotechnology involved is new and poorly ...

High-dose opioid prescribing continues to climb

Sep 12, 2014

High-dose opioid prescribing increased by 23 per cent in Canada between 2006 and 2011, despite clinical guidelines recommending that most patients should avoid high-doses of these drugs, according to new ...

Feds say Bayer colon supplement makes bogus claims

Sep 12, 2014

The United States government accused Bayer of making scientifically unproven statements about the health benefits of a popular probiotic on Friday, claiming the German pharmaceutical giant was in contempt of court.

User comments