Mylan buying vertically integrated SMS oncology plant
Generic drugmaker Mylan is boosting its manufacturing capacity in oncology drugs by acquiring a 4-year-old, FDA-approved plant in India from SMS Pharmaceuticals for $32.5 million.
The plant in Vizag manufactures active pharmaceutical ingredients through finished products, including injectable drugs. SMS brought the plant online in 2008.
In an emailed statement, Mylan ($MYL) said the new plant will feed particularly the company's expansion of its institutional business, which sells to large clients like group purchasing organizations, hospitals, and surgical and radiology services. The Indian plant already sells to institutional clients. Mylan said the plant will support several areas and while it did not mention it, the company in August struck a deal to be the manufacturing arm of a generic push into Japan.
Mylan bought its way into Indian manufacturing in a big way in 2007 with the acquisition of API supplier Matrix Laboratories, which it rebranded last year as Mylan Laboratories Ltd. It operates 9 plants in India and China.
For its part, SMS says it will use the money to pay down debt and upgrade its other facilities, The Financial Express reports.