News briefs: Drug majors eyeing Strides Arcolab unit; Astellas invests in oncology facility

Leading drug multinationals, including global behemoth Pfizer (NYSE: PFE) and Swiss major Novartis (NOVN: VX) are reportedly considering acquiring  India-based Strides Arcolab’s injectable drugs business Agila Specialties, according to a report by the Economic Times of India, quoting sources familiar with the situation.

Also considering a bid, the newspaper suggests, is USA-based buyout firm Kohlberg, Kravis Roberts. The speculation comes at a time of shortages of injectable drugs in the USA. Agila is a large supplier of sterile injectables for cancer treatment to Pfizer, with whom its parent Strides Arcolab struck a drug supply pact in 2010

Reportedly, Strides Arcolab is seeking between $1.6billion and $2 billion for the sale of Agila Specialties, more than twice the company's market value. The unit accounts for nearly half the company's gross profits. Strides is likely to initiate a formal auction process for the sale of the unit by end of September, the Economic Times said, noting that none of the suggested bidders for the unit would comment on market speculation.