Mylan Inc., a producer of generic and specialty branded drugs in Pittsburgh, will acquire Agila Specialties in Bangalore, India, a developer of generic inectable drugs and division of Strides Arcolab Ltd. Mylan will pay $1.6 billion cash for Agila Specialties, with up to $250 million in contingent payments possible later on.
Mylan offers some 1,100 generic drugs and several specialty lines. Its products include antiretroviral drugs on which, according to the company, 40 percent of the world’s HIV/AIDS patients depend. The company’s specialty division provides branded respiratory, allergy, and psychiatric medications. Among Mylan’s specialty products is the EpiPen auto-injector to treat anaphylaxis, a life-threatening allergic condition.
Agila Specialties makes injectable drugs in vials and pre-filled syringes, including antibiotics, cancer drugs, penicillin, and ophthalmics at labs in India, Brazil and Poland. The company has some 300 drugs approved globally, including 61 abbreviated new drug applications approved by the FDA. Agila says it has another 350 drug applications pending worldwide, with 122 of those by the FDA.
“Agila will bring us one of the most state-of-the-art, high quality injectables manufacturing platforms in the industry,” says Mylan’s CEO Heather Bresch. “Our significantly expanded manufacturing capacity will allow us to vertically integrate our injectables platform and fast-track our ability to pursue additional product opportunities and partnerships to facilitate long-term growth.”
Under the deal, Mylan will pay Strides Arcolab $1.6 billion in cash, with an an additional $250 million in payments subject to Strides meeting certain conditions. Mylan is not assuming any outstanding debt or acquiring the business’s cash as part of the transaction.
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Hat tip: FirstWord Pharma
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