Mylan to acquire Strides injectable drug unit Agila specialties for $1.6 billion

Mylan announced that it will acquire Strides Arcolab’s injectable drug unit Agila Specialties for $1.6 billion. Mylan may also pay Strides up to an additional $250 million for meeting undisclosed conditions.
The acqisition will bring the company's portfolio at more than 700 marketed injectables products, with another 350 pending approval. The company said that the acquisition is expected to be accretive to earnings immediately following closing.
This is the second recent acquisition by Mylan in India. Prior to this they acquired an injectable manufacturing facility from India based SMS Pharma

Transaction Valuation

Agila had sales and profit of $255 million and $86 million, respectively, in the year ended 31 December, 2012. At $1.6b, the transaction values Agila at  6.3 times sales and 18 times earnings.

Otsuka, Mitsui and Claris Life Science enter into a Joint Venture

Otsuka Holdings announced today that Otsuka Pharmaceutical Factory, Inc,(OPF)  a subsidiary of Otsuka Holdings, will establish a joint venture in India with Mitsui & Co., Ltd. and Claris Lifesciences Limited.

Ownership of  the Joint Venture

Otsuka, Mitsui and Claris reached an agreement that Otsuka and Mitsui will jointly acquire capital in a company specialized IV solutions business that will be newly established by Claris, one of the leading manufacturers and distributors of IV solutions and generic pharmaceuticals in India.  . The tentative name of the new entity would be "Claris Otsuka"and the equity ownership for each company will be; Otsuka: 60%, Mitsui: 20%, and Claris: 20%.

Valuation and Business of the Joint Venture

Claris will contribute to the Joint Venture company its business of Common Solutions, Anti-Infectives, Plasma Volume Expanders and Parenteral nutrition therapies. Two out of the five plants will be transferred to Claris Otsuka. The Joint Venutre company will also introduce OPF's speciality products in India and Emerging markets. The business transferred contributes 55 percent of Claris current revenues.

The business transferred has been valued at 1313 crores and Claris will receive INR 1050 crores or INR 10.5b from Otsuka and Mitsui (approximately 16 billion JPY or USD 200million) for the 80 percent stake in the JV.