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
Sensex surges over 300 points on energy reforms, state elections

Sensex surges over 300 points on energy reforms, state elections

The BSE Sensex surges over 300 points and the Nifty gains nearly 100 points after the government's energy reforms lead to a rally in energy firms, while wins by Prime Minister Narendra Modi's party in two state elections raise expectations for additional reforms.  Full Article 

REUTERS SHOWCASE

Indian State Media

Indian State Media

Controlling the message: Modi chooses state media  Full Article 

ONGC Stake

ONGC Stake

Govt meeting bankers to discuss share sale in ONGC - source  Full Article 

Gold Curbs

Gold Curbs

Finance Ministry wants to reimpose curbs on gold imports - ET  Full Article 

World Stocks

World Stocks

Shares advance on strong data, earnings  Full Article 

Eyeing Reebok

Eyeing Reebok

Investor group aims to buy Reebok unit - WSJ  Full Article 

Reuters India Mobile

Reuters India Mobile

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