Strides Arcolab completes sale of Agila to Mylan

Strides Arcolab Limited has announced that it has completed sale of its Agila Specialties Division to Mylan Inc for a total consideration of up to $ 1.75 billion. The Board of Directors has approved the final transaction, but has hold back $ 250 million contingent upon satisfaction of certain regulatory conditions. “Consequent to the Warning Letter received by the company for one of its units in Bangalore, Strides has agreed to a hold back of $ 250 million, which will be contingent upon satisfaction of certain regulatory conditions related to the injectable facilities in India. The company expects those contingent conditions will be satisfied sometime in 2014,” said the company in a press release.
 
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Since the initial announcement of this transaction, Strides now expects an additional expenditure of $ 150 million. This includes cost towards acquisition of additional assets from its erstwhile partners and an estimated remediation cost related to its regulatory commitments post the warning letter.
 
Arun Kumar, Founder & Group CEO, said, “We are delighted with the conclusion of this transaction and are confident that Agila will play a significant role in Mylan’s growth strategy to become a global injectable leader.”