MYLAN TO BUY MAJORITY STAKE IN MATRIX

Mylan Laboratories has announced it will acquire a major interest in India-based Matrix Laboratories for $736 million, a deal that will make the company a "global leader" in the generics industry, Mylan's top executive said.

The drugmaker will purchase up to 71.5 percent of Matrix shares from some shareholders and will make an open offer to the remaining shareholders to acquire up to an additional 20 percent of Matrix's shares, Mylan said in a statement. Matrix's Executive Chairman N. Prasad will join Mylan's board of directors and executive management team. Prasad also will retain a 5 percent share in Matrix, which Mylan will control, effectively giving Mylan control of up to 76.1 percent of Matrix.

In a conference call Aug. 28, Mylan CEO and Vice Chairman Robert Coury said the deal with Matrix will allow Mylan to expand its dosage forms and therapeutic categories and increase its supply-chain capabilities.

The transaction is a "major step in establishing a more geographically diversified business," giving Mylan a presence in India, China, Africa and Europe, according to Mylan.

The two drugmakers will have approximately 5,100 employees in 10 countries. The transaction is expected to close in the fourth quarter of calendar year 2006, Mylan said.