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.
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
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.