), one of the leading players in the global generics market, has
been focusing on high potential emerging markets like India to
drive growth. Over the long term, the biggest opportunities for
growth in the generics industry would be expansion in the
emerging markets. Mylan entered the biologics space by
striking a partnership with India-based Biocon Ltd in 2009. In
Feb 2013, Mylan extended its partnership with Biocon.
In Sep 2013, Mylan's impending acquisition of Agila Specialties
private limited, the injectable drugs division of India's Strides
Arcolab limited, for $1.6 billion in cash moved a step towards
closure with clearances from the India's Foreign Investment
Promotion Board and the Cabinet Committee on Economic Affairs.
The deal, expected to close by year end, is aimed at
strengthening Mylan's presence in the high potential generic
The generic segment at Mylan has seen quite a few approvals over
the past few months. The segment received encouraging news from
India when the Drug Controller General of the country cleared
Mylan/ Biocon's biosimilar version of
) breast cancer drug Herceptin (trastuzumab). Mylan stated in its
press release that the move marks the first approval of a
biosimilar emanating from the Mylan/ Biocon partnership. Mylan
intends to sell the drug under the trade name Hertraz following
its Indian launch in early 2014.
We note that Mylan possesses exclusive commercialization rights
for the biosimilar version of the breast cancer drug in the U.S.,
Canada, Japan, Australia, New Zealand and in the EU and European
Free Trade Association countries. In India, Mylan has
co-exclusive rights with Biocon to market the drug.
Biosimilars, which are generic versions of biologic drugs, are
expected to be a significant growth driver in the generics
industry in the coming years. The biosimilars market represents
huge commercial opportunity with a significant amount of biologic
sales slated to lose patent protection in the coming years.
Mylan carries a Zacks Rank #3 (Hold). Some better-ranked stocks
). While Actelion carries a Zacks Rank #1 (Strong Buy), Actavis
holds a Zacks Rank #2 (Buy).
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