Mylan expands globally with $1.6 billion buy
[Pittsburgh Post-Gazette (PA)]
Feb. 28. Cecil-based generic drugmaker Mylan Inc. said late Wednesday that it agreed to buy Agila Specialties Private Ltd., a Bangalore, India, maker of generic injectable drugs, from Strides Arcolab Ltd. for $1.6 billion in cash. The deal, which is expected to close in the fourth quarter pending regulatory approvals, will double Mylan's global injectable business and give it entry into new high-growth markets, including Brazil, the company said.
Mylan CEO Heather Bresch had emphasized last year that the company was looking intently for acquisitions. She indicated Wednesday that there could be more acquisitions to come.
"We're still looking at lots of things," she said in a conference call with analysts. One analyst questioned the $1.6 billion price tag for Agila, saying that on its face, the deal looked expensive. The agreement also includes up to an additional $250 million in payments subject to the satisfaction of certain conditions by Strides.
Chief financial officer John Sheehan responded that the injectable business was expected to accelerate under Mylan. "It's not what the business has done historically," he said. "It's what the business is going to do in 2014 is what we are looking at."
Agila's manufacturing facilities include six in India, two in Brazil and one in Poland. Products include vials, pre-filled syringes and ampoules.
Separately, Mylan reported fourth-quarter profits of $162 million, or 39 cents per share, up from $129.5 million, or 30 cents, in the same period a year earlier. Revenue was $1.72 billion, up 13 percent from $1.53 billion. For all of 2012, Mylan earned $640.9 million, or $1.52 per share, up from $536.8 million, or $1.22, in 2011. Revenue for the year was $6.8 billion, up from $6.13 billion. The company also said it planned to buy back up to $500 million in stock this year. Release of the financial results and the announcement of the Agila acquisition were both made after the close of the stock market Wednesday.