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 international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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