Strides Arcolab shares plunge 14.5 pct on completion of Agila sale

Dec 05 2013, 20:07 IST
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At the NSE, the stock tumbled 14.54 per cent to settle at Rs 841.55 (Reuters) At the NSE, the stock tumbled 14.54 per cent to settle at Rs 841.55 (Reuters)
SummaryIn intra-day, the stock shed 15.31 per cent to hit a low of Rs 835.

Shares of drug maker Strides Arcolab today nosedived 14.5 per cent after the company said it has completed the sale of its Agila Specialties division to Mylan Inc.

Strides Arcolab shares ended the day at Rs 843, down 14.50 per cent from its previous close on the BSE. In intra-day, the stock shed 15.31 per cent to hit a low of Rs 835.

At the NSE, the stock tumbled 14.54 per cent to settle at Rs 841.55.

Strides Arcolab today said it has completed the sale of its Agila Specialties division to Mylan Inc for a total consideration of up to USD 1.75 billion.

The company, however, said it has agreed to a hold back of USD 250 million due to a warning letter received by it from the USFDA for one of its injectable facilities in Bangalore.

In a statement, the company said since the initial announcement of the transaction, the board of directors approved final transaction terms to include "a hold back of USD 250 million contingent upon satisfaction of certain regulatory conditions".

In September, the USFDA had issued a warning letter to Agila Specialties over violation of manufacturing norms in one of its plants in Bangalore following an inspection in June.

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