Mylan to buy injectable drugs unit of Strides for $1.6 billion

Thu Feb 28, 2013 4:50am IST

Related Topics

Stocks

   

REUTERS - Generic drugmaker Mylan Inc (MYL.O) said it would buy the injectable drugs unit of Strides Arcolab Ltd (STAR.NS) for $1.6 billion to expand its presence in the fast-growing generic injectables market.

The deal for Agila Specialities, a wholly-owned subsidiary of Strides, caps months of uncertainty regarding its sale, with reports suggesting Pfizer Inc (PFE.N) and Japan's Otsuka Holdings Co Ltd as other potential buyers.

The deal will help Mylan, one of the world's largest generic drugmakers, double its injectable drugs portfolio.

A raft of patent expiries that will stretch until 2016 is expected to drive growth in the global generic injectables market. Also, many generic injectable drugs, which tend to be administered in hospitals, have been in short supply in the United States, including treatments for cancer.

"Together we will have more than 700 marketed injectables products and a global pipeline of more than 350 injectables products pending approval," Mylan President Rajiv Malik said.

Mylan said the acquisition of Bangalore-based Agila is expected to immediately add to its adjusted diluted earnings per share following closing.

"We expect the transaction to have a greater than 10 percent return on invested capital by the third full year from closing," CFO John Sheehan said in a conference call.

Mylan will also pay Strides Arcolab $250 million in potential milestone payments, it said.

Mylan said it will not assume any outstanding debt for the deal, which was unanimously approved by its board.

Separately, Mylan reported a 25 percent rise in fourth-quarter results profit, helped by sales of its Epipen auto-injector for the treatment of severe allergic reactions.

Mylan's shares were up 2 percent in extended trading after closing at $28.57 on Wednesday on the Nasdaq.

(Reporting By Adithya Venkatesan and Vrinda Manocha in Bangalore; Editing by Saumyadeb Chakrabarty)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Trade Deal

REUTERS SHOWCASE

Record High

Record High

Nifty hits record high on foreign buying, higher Asian stocks.  Full Article 

Bullish on Equities

Bullish on Equities

Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs  Full Article 

Facebook Results

Facebook Results

Second quarter revenue increases 61 percent  Full Article 

BRICS Bank

BRICS Bank

World Bank chief welcomes new BRICS development bank.  Full Article 

Streamlining Operations

Jet Streamlines

Jet Airways chairman says looking to restructure debts, talking to bankers  Full Article 

Political Economy

Political Economy

Analysis - Watch what markets don't do as world politics turns nasty   Full Article 

Photo

Honda's India Thrust

Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec   Full Article 

 Boosting Output

Boosting Output

NMDC plans to boost iron ore output by two-thirds  Full Article 

Apple Results

Apple Results

Apple margin concerns fade, focus shifts to iPhone launch  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage