29 Jul 2016

Chinese pharma company Fosun Pharma to acquire Indian drug maker Gland Pharma for Up to $1.26 Billion

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Tagsacquisition in pharma, Fosun Pharma, Gland Pharma

Acquiring Company: Fosun Pharmaceutical Group Co., China
Acquired Company: Gland Pharma, India

Shanghai Fosun Pharmaceutical Group Co. plans to buy Indian drugmaker Gland Pharma Ltd. for no more than $1.26 billion. Fosun Pharma will acquire 86.08 percent of Gland Pharma.

The transaction, the largest purchase of an Indian asset by a Chinese company, would allow the Chinese company to gain control of a new stable of injectable medicines as well as manufacturing facilities in India.

Set up in 1978, Gland develops and manufactures generic injectables for use in nearly 90 countries on five continents, with a focus on the Indian and US markets. It owns four factories. Chen Qiyu, chairman of Fosun Pharma, said in a statement that the Gland Pharma deal will strengthen the firm’s global presence and accelerate the speed of its internationalisation.

Fosun is a multinational company. Fosun is a large Chinese conglomerate with multiple business arms. As part of the pharmaceutical group, Fosun has a wide front-end presence in certain markets like Africa, Europe and Japan. Gland has been traditionally developing products for its customers in markets such as US and Europe. Fosunhave several R&D centres in China, lot of manufacturing in China. They are also strong in active pharmaceutical ingredient (API). So, we felt that this will really compliment what we already created.