Mylan to purchase Agila unit from Strides Arcolab for $1.6 billion

Mylan announced Wednesday that it reached an agreement to acquire Strides Arcolab’s injectable drug unit Agila Specialties for $1.6 billion. Mylan CEO Heather Bresch indicated that the acquisition should be completed by the fourth quarter of this year, pending regulatory approval. The drugmaker also noted that it could pay Strides up to an additional $250 million for meeting undisclosed conditions.

Earlier this month, sources indicated that Mylan was in exclusive discussions about buying Agila for nearly $2 billion. Previous reports had also linked Fresenius, Novartis and Pfizer with the injectable-medicines unit, suggesting that the latter was engaged in advanced talks and had began due diligence.

Bresch remarked that "the addition of Agila to our existing injectables platform will...accelerate our target of becoming a top-three global player in injectables," adding that the acquisition will also provide entry into key growth markets, such as Brazil. Mylan President, Rajiv Malik, noted that the deal will boost the company's portfolio of injectable drugs from 500 to 700, with another 350 pending approval. The company said that the acquisition is expected to be accretive to earnings immediately following closing.

In separate news, Mylan announced that its fourth-quarter profit for 2012 was up 25 percent year-over-year to $162 million.

To read more Top Story articles, click here.