PITTSBURGH (AP) — Generic drug maker Mylan Inc. said it will buy Agila Specialties for $1.6 billion in cash, expanding its offerings of injectable drugs and its sales in international markets.
Mylan, currently the fourth-largest maker of generic drugs in the world, is buying Agila from Strides Arcolab. It could pay Strides another $250 million based on other undisclosed conditions. Mylan said the deal will give it new generic injectable drugs and will help it enter the market in emerging markets like Brazil.
The Pittsburgh company expects the Agila purchase will add to its earnings. The transaction is expected to close in the fourth quarter subject to regulatory approval.
Mylan said it will take out a $1 billion term loan from Morgan Stanley to help finance the acquisition. The company said it is not taking on any debt from Agila in the deal.
Both Agila and Strides are based in India.
Mylan gets most of its revenue from generic drugs, but it also handles the U.S. marketing of EpiPen, an epinephrine auto-injector developed by Pfizer Inc. for the treatment of severe allergic reactions.
The company expanded it business into India in early 2007 by buying a majority stake in Matrix Laboratories. Later that year it bought Merck KGaA's generic business for $7.7 billion, expanding into Europe, Africa, the Middle East and the Asia-Pacific region. In 2009 Mylan bought the rest of Matrix. The company's sales grew 11 percent to $6.8 billion in 2012.