Mylan to buy Indian generic drug maker for $1.6B
Generic drug maker Mylan Inc. said on Wednesday that it will acquire an Indian maker of generic injectable medicines for $1.6 billion, expanding its manufacturing capacity and portfolio in an area of generics in which quality concerns have led to a shortage of treatments.
The all-cash deal for Agila Specialties Private Ltd. also will make Mylan a bigger player in generic injectables and increase its footprint in emerging markets, especially in Brazil where the India-based company it is acquiring gets a significant amount of business.
“Agila will bring us one of the most state-of-the-art, high-quality injectables manufacturing platforms in the industry,” said Heather Bresch, chief executive of Cecil-based Mylan.
Along with its nine facilities in India, Brazil and Poland — eight of which are approved by the Food and Drug Administration to make drugs for the U.S. market — Agila gives Mylan more than 300 products.
Mylan's portfolio of injectables includes more than 500 medicines, and it has two injectable manufacturing plants in Ireland and India. Injectables include antibiotics and treatments for cancer among other drugs.
Agila is a subsidiary of Strides Arcolab Ltd., an Indian pharmaceutical company, which also could receive up to $250 million in additional payments if it meets certain unspecified conditions.
Bresch told analysts on a conference call announcing the deal and the company's fourth-quarter earnings that Agila's plants will make it easier for Mylan to better fill America's unmet need for sterile injectable drugs.
The FDA has estimated that shortages of sterile injectables account for 80 percent of drug shortages in the United States, and about 40 percent of those shortages are because of quality problems, Bresch said.
The expanded manufacturing capacity and large portfolio of more than 800 injectable medicines will position Mylan to meet demand from a global generic injectables market that is expected to grow by 13 percent a year through 2017, the company said.
Brazil is a growing market “that Mylan has been looking at for some time,” Mylan President Rajiv Malik said. About 27 percent of Agila's sales come from the South American country of nearly 200 million people.
Mylan expects the deal to close in the fourth quarter and immediately begin to add to its earnings.
The company reported fourth-quarter earnings of $162.0 million, or 39 cents a share, up from $129.5 million, or 30 cents a share, in the same period a year ago.
The quarter capped what Bresch said was “our best year to date.”
For the full year, net income was $640.9 million, or $1.52 a share, compared with $536.8 million, or $1.22 a share, in 2011. For 2013, Mylan is predicting adjusted earnings per share of $2.75 to $2.95.
The announcements came after stock markets closed on Wednesday.
Alex Nixon is a staff writer for Trib Total Media.
He can be reached at 412-320-7928 or email@example.com.
Add Alex Nixon to your Google+ circles.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Amazon.com distribution center planned for Pittsburgh’s West End
- Smartphone coupons just one way stores aim to increase spontaneous buys
- 10 million Americans sought help to enroll in Obamacare
- Health insurers will refund $5.2M to Pa. subscribers, group plans
- GM profit 2Q falls 85% on recall costs
- 3 ways to dig up dirt on people
- Morgan Stanley settles for $275M
- Dunkin’ pushes cashiers to ‘upsell’
- EQT posts $110.9 million profit in latest quarter
- Wesco posts higher profit, lowers full year outlook
- IMF cuts U.S., global growth forecasts for ’14