Mylan to buy injectable drugs unit of India's Strides Arcolab Ltd for $1.6 bn
Mylan also reported a 25 percent rise in fourth-quarter profit, helped by sales of its Epipen auto-injector for the treatment of severe allergic reactions.
The company's acquisition of Agila Specialities, a wholly owned subsidiary of Strides, ends months of speculation regarding its sale, with reports suggesting Pfizer Inc and Japan's Otsuka Holdings as other potential buyers.
The deal will help Mylan, one of the world's largest generic drugmakers, double its injectable drugs portfolio and make it one of the leaders in the rapidly-growing business.
Global generic injectable drug sales are expected to grow faster that other dosage forms, helped by a raft of patent expiries, Mylan said.
The increased portfolio is also likely to help Mylan as many generic injectable drugs, which tend to be administered in hospitals and include treatments for cancer, have been in short supply in the United States.
"Together we will have more than 700 marketed injectables products and a global pipeline of more than 350 injectables products pending approval," Mylan President Rajiv Malik said.
Mylan said the acquisition of Agila, which is based in the southern Indian city of Bangalore, is expected to immediately add to its adjusted diluted earnings following closing.
"We expect the transaction to have a greater than 10 percent return on invested capital by the third full year from closing," CFO John Sheehan said in a conference call.
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