Mylan’s US$1.6 Billion Deal Put On Hold
Mylan Inc is the second largest company focused on generic drug manufacturing. The company proposed an acquisition deal of a unit at Strides Arcolab Ltd. priced at US$1.6 billion. However, the deal was put on hold after Indian regulators raised concern about foreign ownership of cancer drug manufactures. This was according to a report from the Economic Times.
In a story posted on its site, the newspaper said that the decision on the acquisition dated July 8 was deferred by India's Foreign Investment Promotion Board. The newspaper added that the Indian regulators were worried that Mylan may steer oncology treatments made locally to the US markets. This would make the treatments less available at home.
Last February, Mylan announced its purchase of Bangalore based Strides' Agila Specialties, maker of injectable cancer drugs. The deal was still seen to push through even after the deferred decision. However, Mylan may need to make other assurances to Indian regulators said Douglas Tsao, a New York based Barclays analyst.