Fosun Pharma intends to acquire a 74% stake in Indian pharmaceutical company Gland Pharma

On September 18, Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (hereinafter referred to as “Fosun Pharmaceutical”) announced that it intends to invest no more than US$109.3 million to acquire a 74% stake in Indian pharmaceutical company Gland Pharma, including the acquirer. A contingent consideration of no more than $25 million will be paid based on the sale of enoxaparin in the United States.

According to the announcement, the proportion of shares of Gland Pharma held by Fosun Pharma to acquire KKR and its founding shareholders was adjusted from 69.971% to 57.891%. Upon completion of the acquisition, KKR will no longer hold a stake in Gland Pharma. The amount and amount of equity held by the Vetter family and the purchase of convertible preferred shares remain unchanged; at the same time, the termination date of the transaction will be extended to October 3, 2017.

It is understood that Gland Pharma was founded in 1978 and is headquartered in Hyderabad, India. It is India's leading manufacturer of generic injection products. Gland Pharma is India's first FDA-approved manufacturer of injectable pharmaceuticals and is GMP-certified in the world's major regulatory markets, with revenues primarily from the US and Europe. Gland Pharma currently provides manufacturing services for injectable generic drugs to major pharmaceutical companies around the world through joint development and licensing.

Chen Qiyu, co-president of Fosun Group and chairman of Fosun Pharma, said: "China and India have strong complementarities in the pharmaceutical field. The resource grafting of Chinese and Indian pharmaceutical companies represented by Fosun Pharma and Gland Pharma will help promote China. The pace of internationalization of pharmaceutical companies in R&D innovation and export of generic drugs."

According to reports, after the completion of this transaction, it will help promote the industrial upgrading of Fosun Pharma's pharmaceutical manufacturing business, accelerate the internationalization process, and increase the market share in the injection market. At the same time, Fosun Pharma will leverage Gland Pharma's own research and development capabilities and the unique generic drug policy advantages of the Indian market to graft Fosun Pharma's existing biomedical innovation research and development capabilities to achieve product line integration and synergy, thereby expanding pharmaceutical manufacturing and R&D. The scale of the business.

The Gland Pharma management team said that the cooperation with Fosun Pharma will enable the company to make greater contributions to the Indian biopharmaceutical market and foretell the strong growth prospects of the medical industry . In addition to accelerating the pace of Gland Pharma's growth, this partnership will also drive the Indian pharmaceutical industry to create more jobs in the medium to long term.

Source: Xinhuanet