Feb 27 Generic drugmaker Mylan Inc said
it would buy the injectable drugs unit of India's Strides
Arcolab Ltd 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 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, India-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.