China’s Fosun Pharmaceutical To Acquire India’s Gland Pharma for Nearly $1.3 Billion
Fosun Pharmaceutical (Group) Co. Ltd., a Shanghai-based healthcare company, has agreed to acquire an approximate 86% stake in Gland Pharma Limited, an Indian pure-play generic injectable pharmaceutical products company, for up to $1.26 billion.
Based on the agreement, Fosun Pharma will purchase all shares of Gland owned by KKR Floorline Investments Pte. Ltd. and its affiliates in addition to shares purchased from other shareholders of the company. P.V.N. Raju, founder of Gland, and his son, Dr. Ravi Penmetsa, will continue to be on the board, and Dr. Penmetsa will continue as managing director and CEO. The family will retain a stake in Gland.
KKR invested in Gland in 2014. Since then, the company has seen its capacity and profit increase, according to the company. This was achieved, in part, by Gland's investment into a new manufacturing plant, optimization of existing facilities, enhanced R&D spend and focus, and Gland's ability to file for and own further intellectual property, according to the company.
Following the close of the transaction, Gland will remain headquartered in Hyderabad, India. Gland develops and manufactures generic injectables for use in nearly 90 countries, with a focus on the Indian and US markets.
Source: Gland Pharma