china’s fosun pharma to sign agreement for over us$ 1.2 billion in gland pharma acquisition
on july 28, shanghai fosun pharmaceutical (group) co. ltd. (together with its subsidiaries, “fosun pharma”), a leading chinese healthcare provider (stock code: 600196.sh, 02196.hk), today announced the signing of a definitive agreement under which fosun pharma will acquire an approximate 86.08% stake in gland pharma for no more than us$ 1261.37 million, including paying no more than us$ 50 million contingent consideration for gland pharma’s enoxaparin sales in the u.s. market. this is, so far, the largest overseas acquisition of a chinese pharmaceutical company.
following the close of the transaction, gland pharma will remain headquartered in hyderabad. p.v.n. raju, founder of gland pharma, and his son, dr. ravi penmetsa, will continue to be on the board, and dr. penmetsa will continue to serve as managing director and ceo. the family will retain a stake in gland pharma.
mr. chen qiyu, chairman of fosun pharma said, “gland pharma’s management team, along with the support from kkr, has done a tremendous job of growing the business to become the global leader in generics injectables industry. 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 pharma. ”
established in 1978 and based in hyderabad, gland pharma develops and manufactures generic injectables for use in nearly 90 countries on five continents, with a focus on the indian and us markets. in 2003, gland pharma became the first company in india to get us food and drug administration (“fda”) approval for pharmaceutical liquid injectable products. gland pharma’s world-class manufacturing facilities have also received approvals from a number of key medical regulatory agencies around the globe including those in australia, germany, and the uk, as well as the world health organization (“who”).
the transaction will promote fosun pharma’s development by upgrading pharmaceutical manufacturing, speeding up internationalization progress and increasing market share in injectables field. the two pharmaceutical manufacturers are expected to integrate production lines and synergize innovation in developing biopharmaceutical products. fosun pharma would also be able to further explore the international market by leveraging gland pharma’s research capability and india’s preferential policies upon generic drugs.
the transaction is subject to customary regulatory approvals.
about shanghai fosun pharmaceutical (group) co.,ltd.
established in 1994, shanghai fosun pharmaceutical (group) co., ltd. (“fosun pharma”; stock code: 600196.sh, 02196.hk) is a leading healthcare group in the prc. fosun pharma strategically covers important segments of the healthcare industry value-chain, including pharmaceutical manufacturing and r&d, healthcare services, medical diagnosis, medical devices manufacturing and agent, as well as pharmaceutical distribution and retail, making contribution to improving people’s health. fosun pharma maintains a national recognized enterprise technology centre and a highly capable international r&d team, focusing on innovation and research of therapeutic areas including cardiovascular system, central nervous system, blood system, metabolism and digestive tract system, anti-infection and anti-tumor. with its commitment to innovation for good health and creating a better future, fosun pharma will continue insisting on the strategic development approach of “organic growth with external expansion and integrated business operation”, striving to be one of the first-class enterprises in the global healthcare market.