China-led Fosun Pharma taps big buyout funds for Gland Pharma

INDIA — Chinese billionaire Guo Guangchang’s Shanghai Fosun Pharmaceutical has tapped big buyout funds for Gland Pharmaceutical.

Buyout firms Advent International, Baring Private Equity Asia (now owned by EQT), Bain Capital, Blackstone, Carlyle, and KKR are among those who have been approached to buy the Fosun-owned Gland Pharma, in what would be one of the largest pharma deals in the country, said people aware of strategic developments.

Chinese billionaire Guo Guangchang’s Shanghai Fosun Pharma Group is the controlling shareholder of listed generic injectables maker Gland, with 57.86 percent stake. The buyout will trigger an open offer for an additional 26% of the company.

Hyderabad-based Gland specializes in injectable drugs such as antibiotics, oncology, and cardiology treatments and has a presence in about 60 countries, according to its website.

Fosun Pharma acquired a 74% stake in Gland for about US$1.1 billion in 2017 from an investor group including KKR & Co.

It listed the business three years later in a US$873 million initial public offering in Mumbai, according to a Bloomberg report.

Bloomberg reported on November 29 that Fosun was considering selling Gland Pharma for US$3.8 billion.

Fosun Pharma’s high valuation expectations could present a hurdle to any potential deal amid a tough financing environment, Bloomberg reported, quoting people privy to the developments.

Gland Pharma’s core markets include the US, Canada, Europe, and Australia. As of September 30, 2022, Gland Pharma and its subsidiaries had 322 abbreviated new drug applications (ANDA) filings in the US.

Out of these, 259 were approved 63 were pending, according to a company presentation. The Indian market accounted for 7 percent of total sales during the second quarter of this fiscal year.

Gland Pharma posted revenues of US$532.1 billion and a net profit of US$146.6 billion in FY22.

In November, Gland Pharma said it would buy French pharmaceutical firm Cenexi for 120 million Euros (US$126.5 million) as it looks to expand its presence in the European market, enhancing its contract manufacturing (CDMO) offerings in the European market.

The acquisition would also provide the company with the technical know-how in sterile forms including ophthalmic gel, needleless injectors, and hormones.

Through the acquisition, Gland Pharma also gained access to global clients like Bayer, AstraZeneca, Sanofi, Mylan, Organon, as well as biotech players like Stragen, and Advanz Pharma among others.

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