Shangai Fosun to buy 86% stake in Gland Pharma for $1.26bn

As per the agreement, the Chinese firm will buy all of the Gland Pharma shares owned by KKR Floorline Investments apart from the shares purchased from the company's other shareholders.

Based in Hyderabad, Gland is engaged in the development and manufacture of generic injectables for use in about 90 countries on five continents, with a focus on the Indian and US markets.

After completion of the transaction, Gland will continue to be headquartered in Hyderabad. The company's founder P.V.N. Raju and his son, Ravi Penmetsa, will continue to be on the board.

Penmetsa will continue as managing director and CEO. The family will retain a stake in Gland.

Fosun Pharma chairman Chen Qiyu said: “The deal will greatly strengthen Fosun Pharma’s global presence and accelerate our speed of internationalization.

"It will enable us to provide more high-quality products and services to our patients worldwide. Fosun Pharma is dedicated to implementing our investment model of ‘Combining China’s Growth Momentum with Global Resources’ with the win-win cooperation with Gland.”

Penmesta said: “This transaction truly demonstrates the strong expertise of our people and the potential for Indian companies to improve health care in markets worldwide. We look forward to continuing our work to research, develop and provide medical products from India and continue to add capacity at our facilities.”

Commenting about KKR which invested in Gland a couple of years ago, Penmesta said: “We have benefited from the experience of KKR, which brought the skills and expertise that enabled Gland to grow and develop as a multinational leader in health care. We achieved improved performance and look forward to building upon that foundation.”

Image: Shangai Fosun Pharmaceutical has agreed to acquire about 86% stake in Indian drugmaker Gland Pharma. Photo: courtesy of stockimages/FreeDigitalPhotos.net.