Pfizer Seen Circling Agila With U.S. Drug Shortages

A shortage of injectable drugs in the U.S. means India’s Strides Arcolab Ltd. could sell a division that makes generic cancer treatments and antibiotics for more than the entire company’s market value.

Strides, which has seen its market capitalization double to 48 billion rupees ($832 million) this year, may sell its Agila Specialties unit, three people with knowledge of the matter said last week. A multiple of 18 to 20 times earnings before interest, taxes, depreciation and amortization would represent a “fair” price for Agila, Ernst & Young LLP said, meaning the division could fetch at least $1.35 billion, according to data and analysts’ estimates compiled by Bloomberg.