Friday, 29 July 2016｜Source：CHINA CHAMBER OF COMMERCEFOR IMPORT&EXPORT OF MEDICINES &HEALTH PRODUCTS｜Author：
Shanghai Fosun Pharmaceutical (Group) will acquire Gland Pharma for up to $1.26 billion, Gland said today. The deal will add the Indian-based maker of generic injectable drugs to the Chinese-based global researcher, developer, producer, and retailer of biopharmaceutical products.
Fosun Pharma will acquire an 86% stake in Gland by purchasing all shares of the company now owned by KKR Floorline Investments, as well as shares owned by other investors.
“The deal will greatly strengthen Fosun Pharma’s global presence and accelerate our speed of internationalization,” Fosun Chairman Chen Qiyu said in a statement. “It will enable us to provide more high-quality products and services to our patients worldwide.”
KKR acquired its 38% stake in Gland in 2014. Under KKR investment, Gland said, it opened a new manufacturing plant, carried out “significant” optimization of existing facilities, increased its R&D spending and focus, and grew its intellectual property portfolio. Those moves enabled Gland to boost its production capacity as well as its profits, the company added.
“We achieved improved performance and look forward to building upon that foundation," Dr. Ravi Penmetsa, M.D., stated. “We look forward to continuing our work to research, develop, and provide medical products from India and continue to add capacity at our facilities.”
Upon completion of the deal, which is subject to customary regulatory approvals, Gland will remain headquartered in Hyderabad, India.
Gland founder P.V.N. Raju and his son, Ravi Penmetsa will continue to serve on the board of the company, where Dr. Penmetsa will continue as managing director and CEO. The family will retain a stake in Gland.
Dr. Penmetsa told the Economic Times of India that Gland’s capabilities in the injectable drugs and high-value active pharmaceutical ingredients complemented Fosun Pharma’s strengths in API manufacturing.
“Fosun has a wide front-end presence in certain markets like Africa, Europe, and Japan. Gland has been traditionally developing products for its customers in markets such as the U.S. and Europe,” Dr. Penmetsa added. “We are also looking at the potential use of Fosun's biologicals and biosimilars development capabilities.”
Source: Gen