$250 million payable upon satisfaction of certain regulatory conditions
Strides Arcolab, the publicly held pharmaceutical company, on Thursday said that it 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 USFDA watch.
"Consequent to the warning letter received by the company for one of its units in Bangalore, Strides has agreed to a 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," Strides said.
The company added that 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," it said.
The transaction, which was announced during late February 2013, got delayed as one of Strides' unit was put under USFDA watch.
"Consequent to the warning letter received by the company for one of its units in Bangalore, Strides has agreed to a 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," Strides said.
The company added that 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," it said.
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