Wednesday, February 27, 2013

Mylan to acquire Strides injectable drug unit Agila specialties for $1.6 billion

Mylan announced that it will acquire Strides Arcolab’s injectable drug unit Agila Specialties for $1.6 billion. Mylan may also pay Strides up to an additional $250 million for meeting undisclosed conditions.
The acqisition will bring the company's portfolio at more than 700 marketed injectables products, with another 350 pending approval. The company said that the acquisition is expected to be accretive to earnings immediately following closing.
This is the second recent acquisition by Mylan in India. Prior to this they acquired an injectable manufacturing facility from India based SMS Pharma

Transaction Valuation

Agila had sales and profit of $255 million and $86 million, respectively, in the year ended 31 December, 2012. At $1.6b, the transaction values Agila at  6.3 times sales and 18 times earnings.