India Cabinet Approves Mylan’s Acquisition of Agila Specialties

Source: The Wall Street Journal

NEW DELHI–The Indian cabinet approved the 51.68 billion rupee ($764 million) acquisition of Strides Arcolab Ltd.’s (532531.BY) unit Agila Specialties Pvt. Ltd. by U.S.-based Mylan Inc., a deal that had been delayed over concerns that it could limit the supply of lifesaving drugs in India.

The Cabinet Committee on Economic Affairs granted its final approval for the deal Tuesday, Information and Broadcasting Minister Manish Tewari said.

The acquisition was first announced in February. It gives Mylan access to cheap manufacturing of generic injectable drugs, which are in high demand in the U.S. and other markets.

The Indian government froze the deal in July, citing concerns that drugs for cancer treatment made by Agila would be exported to lucrative foreign markets, reducing the domestic supply of these drugs.

Anand Sharma, the Indian trade minister, said at the time that India was examining ways to balance the need to attract foreign direct investment with the desire to ensure a steady supply of cheap lifesaving drugs.

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