Under the terms of the transaction, Mylan will purchase 51.5% of Matrix’s shares and then make an open offer to Matrix’s remaining shareholders to acquire up to an additional 20% of Matrix’s shares outstanding. Assuming the open offer is fully subscribed, the total purchase price is expected to be approximately $736 million. Matrix will remain a publicly traded company in India and will continue to operate on an independent basis.
Mylan said that the deal would enable the company to accelerate its existing expansion plans in India. Mylan will also use its relationship with Matrix to expand its dosage forms and therapeutic categories.
Mylan and Matrix together will have approximately 5,100 employees in 10 countries. Mylan said that Matrix will provide it with a significant presence in important emerging pharmaceutical markets, including India, China, and Africa, as well as a European footprint and distribution network through Matrix’s Docpharma subsidiary.
Matrix’s Docpharma subsidiary supplies branded generics in Belgium, the Netherlands and Luxembourg, and is set to provide Mylan with a platform for building a larger European presence.
Matrix also expands Mylan’s high-barrier-to-entry product capabilities, particularly in the area of anti-virals. Through its anti-retroviral franchise, Mylan and Matrix intend to partner with international programs to bring lower-cost treatment solutions to patients in regions of the world most affected by HIV.
The transaction, expected to close in the calendar fourth quarter of 2006, remains subject to certain conditions.