India’s Strides and Mylan have agree to settle Regulatory and General Claims on Agila transaction. According to the agreement, after payment to Mylan, Strides will receive approximately $30 Million from Regulatory escrow
In reference to Strides’ announcement from December 05, 2013, and its intimations to the Stock Exchanges from December 15, 2015 and April 06, 2016, as announced on December 05 2013, Strides and its subsidiary, Strides Pharma Asia Pte Limited have completed the sale to Mylan Laboratories Limited and Mylan Institutional Inc. of Agila Specialties Private Limited and Agila Specialties Global Pte Limited respectively.
At the time of closing on December 05, 2013, two escrows of $100 Million each were provided i.e., $100 Million in respect of potential claims under the SPAs in relation to certain regulatory concerns (“Regulatory Escrow”) and $100 Million in respect of potential claims that may be brought in relation to the warranties and indemnities, including in relation to tax, agreed pursuant to the SPAs and other transaction documents (“General Claims Escrow”)
As stated in Strides’ intimation to the Stock Exchanges dated December 15, 2015, the company and its subsidiary had received notification of claims from Mylan in accordance with the SP As and other transaction documents. The claims that have been notified by Mylan relate to certain regulatory concerns (Regulatory Claims) and certain of the warranties and indemnities, including in relation to tax (“Warranty and Indemnity Claims”).
Strides and Mylan have now agreed on a full and final settlement of all Regulatory Claims notified by Mylan to the Strides and its subsidiary. Pursuant to this full and final settlement, Mylan’s regulatory concerns claims will be satisfied from the Regulatory Escrow, and Strides will receive approximately $30 million, representing the balance of funds it deposited in the Regulatory Escrow on consummation of the Agila sale pursuant to the SPAs.