PITTSBURGH—In what its CEO, Heather Bresch, calls a move tomake the company a leading manufacturer of biotechnology drugs, Mylan Inc. hasinked an agreement to acquire India's Agila Specialties Pvte. Ltd., a developerof generic injectable products, for $1.6 billion in cash.
In announcing the deal on Feb. 27, Mylan said the additionof Agila, which is a business unit of Strides Arcolab Ltd., will broadenMylan's portfolio of off-patent injectable medicines, which are currently inhigh demand due to drug shortages in the United States.
"The addition of Agila to our existing injectables platformwill immediately create a new, powerful global leader in this fast-growing,attractive market segment and accelerate our target of becoming a top-threeglobal player in injectables. Further, the acquisition of this unique assetdelivers on several of Mylan's strategic growth drivers by further expandingand diversifying our product portfolio and geographic reach, strengthening ourpresence in the institutional channel, and positioning us to maximize ourgeneric biologics portfolio," Bresch said in a statement.
The acquisition is expected to be immediately accretive toMylan's adjusted diluted earnings per share following closing. The transactionis expected to close in the fourth quarter, subject to regulatory approvals andcertain closing conditions.
Mylan, which boasted that it currently holds the position asthe world's second-biggest generic drugmaker, looked at other injectable-drugscompanies and their assets, but was disappointed, according to Bresch.
"A lot of these facilities out there are really old," Breschstated. "I would say that what differentiated Agila is their state-of-the-art,high-quality facilities."
Agila's India plant is said to be one of the largest sterilefacilities and has one of the largest lyophilization capacities in the world.Agila has other plants in Brazil and Poland, eight of which have been approvedby the U.S. Food and Drug Administration (FDA).
"Agila will bring us one of the most state-of-the-art, highquality injectables manufacturing platforms in the industry. Our significantlyexpanded manufacturing capacity will allow us to vertically integrate ourinjectables platform and fast-track our ability to pursue additional productopportunities and partnerships to facilitate long-term growth," Bresch stated.
Agila has a broad product portfolio of more than 300 filingsapproved globally and marketed through a network covering 70 countries,including 61 abbreviated new drug applications (ANDAs) approved by the FDA.Agila also has a global pipeline of approximately 350 filings pending approval,including 122 ANDAs pending FDA approval.
"By combining Agila's strong injectables capabilities withMylan's powerful global engine, we will catapult our injectables business to anew level," said Mylan President Rajiv Malik. "Agila will bring Mylan one ofthe deepest and broadest global injectables portfolios in the industry, andtogether, we will have more than 700 marketed injectables products and a globalpipeline of more than 350 injectables products pending approval."
Arun Kumar, executive vice chairman and group CEO of StridesArcolab, said the company's partners, customer and employees stand to benefit"significantly from Mylan's global reach and strong position in the globalgeneric and specialty pharmaceutical sector."
"I am excited by the combination of our Agila business withMylan, as it allows Mylan to leverage its operational base to become a leadingglobal injectables company in the coming years, and offers great opportunitiesto the employees who have made Agila what it is today," Kumar said. "Mylan'slongstanding commitment to quality, its track record of integrity andreliability, and powerful global platform make Mylan the perfect fit for thisbusiness, both culturally and from a commercial perspective."
Following the announcement, Mylan announced that itsfourth-quarter earnings rose 25 percent. For the year, the company said itexpects adjusted earnings of $2.75 to $2.95 a share, compared with its priorview of about $2.75 a share. Mylan forecast 2013 revenue between $7 billion and$7.4 billion. Analysts polled by Thomson Reuters most recently projectedfull-year revenue of $7.16 billion.