Mylan signs $1.6bn deal to buy Agila injectables division

Mylan has announced a $1.6 billion agreement to acquire the sterile injectables business of India's
Strides Arcolab as it recorded a 23% hike in 2012 profits.

The deal to buy Agila Specialties - for what analysts at Panmure Gordon have described as an "eye
watering" sum - indicates the potential that Mylan sees in the generic sterile injectables sector,
which has been affected of late by shortages in key categories such as cancer drugs.

Panmure Gordon estimates that Agila has annual revenues of around $400 million-$500 million,
noting that Mylan is predicting 13% annual growth in the sterile injectables market through 2017,
some three- to four-times overall drug industry growth and driven by patent expiries.