Fosun Pharma considers $3.8B sale of Indian drugmaker Gland Pharma — report
The Fosun Pharmaceutical Group may be considering the sale of a company it took a stake in just a few years ago.
According to a report from Bloomberg News on Tuesday, Fosun is considering the sale of the Indian-based injectable CDMO Gland Pharma Ltd. after it had reportedly received interest from potential buyers.
Bloomberg said in its report that Fosun has been working with an adviser as it informally “gauges interest” in its controlling stake in Gland. Other companies and buyout firms are in the beginning stages of looking at Gland, but no details have emerged on any potential buyers, the report says. The publication lists the market value of Gland at around $3.8 billion.
Fosun bought its controlling stake in Gland in 2017, buying a 74% stake in the company for $1.1 billion. The Chinese pharma had originally wanted an 86% stake but was cut back after the Indian government wanted to veto the original plan.
The news has perked up the ears of investors as Fosun and Gland have seen a rise in their stock prices today by 3% and 7% respectively.
However, despite the reported interest in Gland, it is coming as a bit of a surprise to the manufacturer.
In a letter to the Bombay Stock Exchange on Tuesday, Gland clarified that it is “not aware of any such information” that Fosun is considering the sale of shares of Gland.
“The Company is not in receipt of any communication in this regard from its Promoter(s) and is unable to comment on the same,” Gland’s letter said.
Endpoints News has reached out to both Fosun and Gland for further information but has not received any by press time.
Meanwhile, Gland is making moves of its own. According to Reuters, Gland will buy the French injectable drug manufacturer Cenexi for the price of €120 million ($123.9 million).
Fosun is no stranger to the acquisition game, as last year it bought a majority stake in Chengdu Antejin Biotech, which is developing a shot against 13 strains of pneumonia-causing bacteria, making it a subsidiary. The deal saw Fosun paying shareholders $173.9 million in cash to grab 32.5% of the company with Fosun merging its vaccine business, Dalian Aleph Biomedical, into the company.
