American drug maker Mylan Inc and Bengaluru-based Strides Shasun have settled their two-year old dispute over the pending payments for Agila, the injectable facility that the former had bought from the latter. Mylan has received $170 million by way of final settlement.
It acquired Agila in 2013 for nearly $1.6 billion from Strides Arcolab, but within a year the US drug regulator sent a notice to Mylan regarding violations of good manufacturing practices in the facility.
In August 2015 the regulator issued a warning letter to Mylan, which held back $200 million from the total purchase price of Agila. By then, Strides Arcolab had changed its name to Strides Shasun following an amalgamation with Shasun Pharmaceuticals.
“Strides and Mylan have agreed on a full and final settlement of all regulatory claims notified by Mylan to the company and the subsidiary,”
Badri Komabdur, chief financial officer of Strides said in a notice to stock exchanges.
Strides gained 7.24% on the BSE on Thursday, ending the session at Rs 1,123.75. After payment to Mylan, Strides said it will receive about $30 million from regulatory escrow. The deal was structured in a way that two escrows of $100 m each were provided for potential claims under the SPV in relation to certain regulatory concerns and warranties and indemnities.
Source : economictimes.indiatimes.com