18 September 2017, Shanghai Fosun Pharmaceutical (Group) Co.,Ltd. (referred to as “Fosun Pharma”) (stock code: 600196.SH, 02196.HK) announced today that, as Gland Pharma’s operations continue to perform well, the Founder Shareholders propose to maintain a higher stake in Gland Pharma without impacting the acquisition of a controlling interest in Gland Pharma by Fosun Pharma. The revisions to the agreement will establish a closer cooperation between the management teams of Fosun Pharma and Gland Pharma to jointly promote the sustainable and stable development of Gland Pharma. The parties have now reached agreement that Fosun Pharma will acquire an approximate 74% stake in Gland Pharma for no more than US$ 1,091.30 million, including paying no more than US$ 25 million contingent consideration for Gland Pharma’s Enoxaparin sales in the U.S. market.

According to the announcement, the stake of Gland Pharma held by KKR Floorline Investment Pte. Ltd. and the Founder Shareholders that will be acquired by Fosun Pharma is adjusted from 69.971% to 57.891%.After the transaction is completed, KKR will no longer own shares in Gland Pharma. The aggregate number of shares held by Vetter Family and the Convertible Shares to be purchased remains unchanged. At the same time, the Termination Date shall be extended to 3 October 2017.Gland Pharma is a leading Indian pure-play generic injectable pharmaceutical products company incorporated in 1978, with its headquarters based in Hyderabad, India.

 Gland Pharma is the first injectable drugs manufacturer in India which has been approved by the U.S. FDA and has obtained the GMP Certification from major global laws and regulations markets. Its revenue mainly come from the United States and Europe. Currently, Gland Pharma’s main business model is joint development of products and introduction of licenses to provide all global major pharmaceutical companies with the manufacturing services in relation to injectable generic drugs.

Mr. Chen Qiyu, Co-President of Fosun Group and Chairman of Fosun Pharma said, “China and India have strong complementarities in the field of pharmaceuticals. The resource grafting of Chinese and Indian pharmaceutical companies represented by Fosun Pharma and Gland Pharma will help promote the internationalization of Chinese pharmaceutical companies in R&D innovation and generic drug export, etc.”

The management team of Gland Pharma believes that the partnership with Fosun Pharma will enable the company to contribute further to the Indian bio-tech market. It also signals strong growth prospects of the healthcare sector overall. In addition to accelerating the investment plans of Gland Pharma, this partnership will facilitate creation of more jobs in the Indian pharmaceutical industry in the medium to long term.

The transaction will promote Fosun Pharma’s development by upgrading its drug manufacturing business, accelerating the internationalization process and enhancing Fosun Pharma’s market share in the injectables market. The transaction signals the strong growth prospects of the healthcare sector overall. At the same time, Fosun Pharma will arm itself with Gland Pharma’s abilities in R&D and the policy advantages in injectables in Indian market, together with the biopharmaceutical innovative R&D capabilities, to integrate production lines and synergize innovation, so as to enlarge the scales in drug manufacturing and R&D.