The world's second largest stand alone generic drugs maker, Mylan Inc has agreed to purchase Stride Acroblab Ltd's injectable medicine unit. The price for the purchase is US$1.6 billion and once completed, would make Mylan one of the top three providers of injectables in the world.
The purchase deal for Agila Specialites would increase market exposure for the pharma company and increase Mylan's earnings per share in the short run. The deal would be financed through an unsecured bridge loan worth US$1 billion with an option for another US$250 million when certain conditions occur. This would further broaden Mylan's available options for off patent injectables, as continued shortages in the US have been reported. Amongst these are the sedative injection propofol and Doxil used for ovarian cancer treatments and the shortages are due to manufacturing problems and corporate decisions to stop manufacturing altogether.
As a result of the sale, Mylan shares increased by 5% to US$30 per share.
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