- Allegations of "significant violations of current good manufacturing practice," may cost Strides Arcolab a quarter of a billion in its deal with Mylan (NASDAQ:MYL).
- MYL's deal for the Bangalore-based company's injectable drugs business is now setup to exclude $250M unless the company can resolve the FDA's concerns.
- Here's the language from MYL: "The final transaction terms have been restructured to include provisions such as a hold back, or contingent consideration, of $250M of the potential $1.75B total purchase price, which will be payable in whole or in part to Strides upon satisfaction of certain regulatory conditions."
- For more on the FDA warning letter, see here