Generic drug manufacturer Mylan Inc. announced its plan to purchase the injectable drugs unit of Agila Specialities for $1.6 billion to boost presence in the fast-growing injectables market.

The sale of Agila, which is a wholly-owned subsidiary of India's Strides Arcolab Ltd., is expected to draw interest of potential buyers Japanese firm Otsuka Holdings Co. Ltd. and Pfizer Inc.

Under the deal, Mylan would also pay $250 million in potential milestone to Strides, and does not assume any debt for the sale of Agila, which is based in Bangalore.

The deal is expected to help Mylan in doubling its portfolio of injectable drugs. John Sheehan, company's chief financial officer, said in a conference call that the acquisition would have a greater than 10% return on investment capital by the 3^rd full year from closing.

The global injectables market is expected to see dramatic growth spurred by a great deal of patent expires stretching until 2016.