Mylan Inc. announced that it has completed the acquisition of the Agila injectables businesses from Strides Arcolab Ltd. for up to $1.75 billion, which includes $250 million in contingent consideration. Since the initial announcement of this acquisition, the final transaction terms have been restructured to include provisions such as a hold back, or contingent consideration, of $250 million of the potential $1.75 billion total purchase price, which will be payable in whole or in part to Strides upon satisfaction of certain regulatory conditions, and an enhanced escrow arrangement to fund any potential regulatory remediation costs.
Separately and coincident with the closing of the Agila transaction, a number of key commercial enhancements have taken place that will reduce Agila’s historic, long-term reliance on a business-to-business model and increase value to Mylan. These changes unlock commercial rights and economics in many of Mylan’s key growth markets and improve the long-term commercial profile of Agila for Mylan. Some of these key changes include regaining full commercialization rights for most of Agila’s U.S. portfolio, both marketed and pipeline products, including all oncolytics, and regaining significant product rights in Canada, Australia, Brazil, Japan and South Korea.
Mylan CEO Heather Bresch commented, “The acquisition of Agila will create a global injectables leader, expanding and strengthening Mylan’s existing injectables platform and portfolio, and providing Mylan entry into exciting, new geographic markets. We believe we can generate significant growth from this business as we maximize the capabilities of this platform and accelerate the many untapped opportunities we see ahead.”
Mylan President Rajiv Malik added, “The acquisition of Agila transforms Mylan into a global powerhouse in injectables research and development and manufacturing, with four dedicated state-of-the-art R&D facilities staffed by more than 400 scientists and 13 dedicated manufacturing sites across six countries, and capabilities across all key technologies and product areas. Through this transaction, Mylan also has significantly expanded its injectable product portfolio, pipeline and capabilities, and today has more than 1,200 approved injectable products globally and more than 900 injectable products pending global approvals. Mylan expects to launch more than 800 injectable products through 2018, with approximately 150 of those in the U.S., across a broad range of therapeutic categories and delivery systems.
“Commercially, the combination strengthens Mylan’s existing platform in developed markets, such as the U.S., where Mylan can now offer customers an even more comprehensive portfolio of high quality products. Unlocking commercial rights and economics in many of Mylan’s key growth markets will provide us with additional opportunities to maximize these portfolios. Further, we have accelerated our expansion into key rest-of-world markets, including Brazil, India and Southeast Asia.”
Mylan also announced that its board of directors has set Friday, April 11, 2014 as the date for its Annual Meeting of Shareholders.
Mylan Executive Chairman Robert Coury commented: “We are very excited to welcome Agila’s employees to Mylan. It is clear that the Agila team brings to Mylan a true passion for their business and a strong work ethic, and we are confident they will contribute significantly to our future. I believe that, together, we will be able to integrate our businesses seamlessly and efficiently, and we are hitting the ground running with this process.”
Date: December 4, 2013
Source: Mylan Inc.
Filed Under: Drug Discovery