US drugs firm Mylan completes US$1.75b India buyout

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US generic drug specialist Mylan said on 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 deal 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.

 

 

 

 

 

 

Source : Channel News Asia | December 5, 2013

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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