Hyderabad-based SMS Pharmaceuticals has sold its manufacturing unit in Visakhapatnam to Mylan Laboratories for over Rs 173 crore. The unit manufactures bulk drugs and formulations in the oncology segment and is yet to get an approval from the US Food and Drugs Administrator. The proceeds from the sale of the production unit is expectd to help SMS Pharma to stregnthen its existing facilities and reduce fiscal overheads. For Mylan, this will be the second acquisition in India. In the past, it acquired 71.5% stake in Hyderabad-based active pharmaceutical ingredients maker Matrix Laboratories for over $736 million. According to SMS Pharma, the sale will not have much impact on its revenues and will create a path for strategic alliances with the multinationalas well as business development by way of getting multiple products. Owing to high cost of funds, SMS Pharma has slipped into the red over the the past few quarters.