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Mylan Labs to buy SMS Indian manufacturing unit

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Mylan Laboratories has agreed to purchase SMS Pharmaceuticals’ manufacturing unit-VI in Visakhapatnam, Andhra Pradesh, India, for a total sum of INR1.73bn ($33m).

The manufacturing unit was designed for the production of cancer medications and the active ingredients for cancer drugs.

SMS will use the proceeds to clear some of its existing debts, cut overhead costs, reports the Hindu Business Line.

In addition, SMS will use the finance to strengthen its existing production facilities and working capital.

SMS Pharma, which is involved in active pharmaceutical intermediaries manufacturing, said the legal process would take a couple of months.

 

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