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Mylan Seeks Compensation from Agila for Three Plants Warned by FDA

Source: Business Standard

Dec 16, 2015

Mylan has sent notice to Strides Arcolabs seeking explanation and compensation towards the remedial process of three Indian manufacturing facilities, sought by the U.S. FDA.

In December 2013, Strides Arcolab completed the sale of its Agila Specialties Division to Mylan for close to $1.75 billion.

This past August, the U.S. FDA issued a warning letter to Mylan, citing significant quality violations at three India manufacturing facilities -- all of which were acquired in the Agila deal.

Strides feels it can defend against the Mylan claims, but if not, the company will have to dip into its $200 million dollar escrow account, set aside for "potential claims under the sales and purchase agreements in relation to certain regulatory concerns."

Read the Business Standard coverage