Strides Arcolab Ltd. (STR) won’t get $250 million of the $1.75 billion anticipated from the sale of its injectable drugs unit to Mylan Inc. (MYL:US) unless regulatory concerns at one of the Indian drugmaker’s factories are resolved.
In September, the U.S. Food and Drug Administration told Strides there were “significant violations of current good manufacturing practice” at a plant in Bangalore. Mylan’s purchase has been restructured to hold back $250 million unless “certain regulatory conditions” are resolved, the Canonsburg, Pennsylvania-based company said today in a statement announcing completion of the acquisition.
Mylan, a generic-drug maker, agreed in February to buy the Agila unit of Bangalore-based Strides as part of a push to expand into injectable drugs. It will also increase manufacturing capacity for higher-priced biotechnology drugs.
To contact the reporter on this story: Drew Armstrong in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Reg Gale at email@example.com