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Strides Arcolab completes sale of Agila Specialties to Mylan

05 Dec 2013 Evaluate

Strides Arcolab, the publicly held pharmaceutical company, has completed the sale of Agila Specialties to Nasdaq-listed Mylan Inc for a total consideration of upto $1.75 billion.

The transaction, which was announced during late February 2013, got delayed as one of Strides’ unit was put under US Food and Drug Administration (US FDA) watch.

Consequent to the warning letter received by the company for one of its units in Bangalore, Strides has agreed to  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.

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.

Strides Pharma Scien Share Price

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