Pfizer eyes Strides Arcolab’s injectables unit Agila Specialties: report

Pfizer Inc, the world's largest drugmaker, is among other companies weighing a plan to buy Agila Specialties, the injectable-medicines unit of Bangalore-based Strides Arcolab Ltd, which is valued at around $2 billion, Bloomberg yesterday reported, citing three people with knowledge of the matter.

The New York-based company is conducting due diligence and a deal could be reached this quarter, said the report.

Agila, which makes penicillin, oncology drugs, and sterile injectables, has also drawn interest from Pennsylvania-based Mylan Inc, Swiss drugmaker Novartis, and Germany's Fresenius SE.

Agila Specialties (formerly Strides Specialties), was spun off as a separate division following a restructuring in 2009, and functions as a wholly-owned subsidiary of Strides Arcolab and focuses on key therapeutic areas like anti-infectives, oncology, CNS, GI, ophthalmics and peptides.

The company operates from 14 manufacturing facilities located in 7 countries, including one of the largest steriles capacity in India and has one of the largest lyophilization (freeze drying) capacities in the world.

Agila Specialties accounted for 74 per cent of Strides's earnings before interest, taxes, depreciation and amortization in the nine months through September, while sales jumped to Rs10,000 crore in the same period, from Rs7,400 crore a year earlier.