PITTSBURGH—Mylan Inc. has announced a definitive agreementfor the acquisition of Agila Specialties Private Ltd. from Strides ArcolabLimited. The total offer price comes to $1.6 billion in cash, and StridesArcolab also stands to receive up to an additional $250 million in potentialpayments if certain conditions are satisfied. Mylan's board of directorsunanimously approved the transaction, which, pending regulatory approvals andcustomary closing conditions, is expected to close in the fourth quarter ofthis year. Mylan expects the acquisition to be immediately accretive to itsadjusted diluted earnings per share following the completion of thetransaction.
"This is a financially and strategically compellingtransaction … We anticipate that the acquisition will immediately enhance ourrevenue and earnings growth upon closing, and nearly double our business frominjectables in the first full year," John Sheehan, chief financial officer ofMylan, said in a press release. "Further, this transaction will significantlyaccelerate achievement of our $1 billion target for our institutionalbusiness."
Agila develops, manufactures and markets high-qualitygeneric injectable products, and will boost Mylan's own global injectablesplatform. The company is headquartered in Bangalore, India, and brings with ita product portfolio of more than 300 filings approved globally and marketedthrough 70 countries. In addition, Agila's global pipeline containsapproximately 350 filings awaiting approval, which includes 122 abbreviated newdrug applications waiting for the nod from the U.S. Food and DrugAdministration. The company has manufacturing facilities in India, Brazil andPoland, and produces vials, pre-filled syringes, ampoules, lyophilization,cytotoxics, and antibiotics.
"Our investments in the Agila business, together with theoperational excellence of our employees, have led to the creation a global,high-quality specialty injectables business with an industry-leading pipelineand best-in-class infrastructure. We believe Agila, its partners, customers andemployees across all of its markets will benefit significantly from Mylan'sglobal reach and strong position in the global generic and specialtypharmaceutical sector," Arun Kumar, executive vice chairman and Group CEO ofStrides Arcolab, noted in a statement. "I am excited by the combination of ourAgila business with Mylan as it allows Mylan to leverage its operational baseto become a leading global injectables company in the coming years and offersgreat opportunities to the employees who have made Agila what it is today.Mylan's long-standing 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."
According to IMS Health, the global generic injectables market is expected togrowth at a compound annual growth rate of 13 percent from 2011 to 2017, drivenlargely by patent expiries. The combined portfolio that will result from thistransaction will represent roughly 70 percent of regulated market demand forinjectables.
"By combining Agila's strong injectables capabilities withMylan's powerful global engine, we will catapult our injectables business to anew level. Agila will bring Mylan one of the deepest and broadest globalinjectables portfolios in the industry, and together we will have more than 700marketed injectables products and a global pipeline of more than 350injectables products pending approval," said Mylan President Rajiv Malik. "Inaddition, Agila will further expand Mylan's geographic footprint, providing uswith entry into key growth markets, such as Brazil, and position us to leverageour global portfolio in these exciting markets, in line with our mission ofproviding the world's 7 billion people access to high-quality medicine."
SOURCE: Mylan press release
