BioSpectrum India Magazine November issue BioSpectrum India Magazine - Page 36

36 BIOAnalysis BioSpectrum | November 2017 | www.biospectrumindia.com The deal will help the Chinese company make inroads into India, gain access to US injectable drug market where Gland has a firm hold and bolster its product portfolio. China’s maiden billion- dollar takeover of an Indian pharma giant C reating a new chapter in the history of China and Indian pharmaceutical industry, China’s drug giant Fosun Pharma has acquired approximately 74 per cent in India’s Gland Pharma at a valuation for $1.09 billion. In the regulatory filing, Fosun Pharma and Fosun International said following the completion of the acquisition, Gland Pharma has become an indirect non-wholly owned subsidiary of Fosun Pharma and Fosun International. The Indian company’s promoters Ravi Penmetsa and his father P V N Raju will continue on the board of the company, Gland Pharma said in a statement. Besides, the present management team will be in-charge of the day to day running of the company, it added. It all began in July 2016, when China’s Fosun Pharmaceuticals agreed to acquire approximately 86% stake in Gland Pharma for $1.4 billion. The news of the takeover immediately grabbed eyeballs, making headlines. It was the largest takeover of an Indian pharma giant by a Chinese company. As per the terms of the original transaction, Fosun had said that it will acquire the shares held by Gland Pharma founders Ravi Penmetsa and his family and PE giant KKR. KKR had acquired nearly 36% in the company in 2013 for $200 million, which is now valued at $540 million. Under the terms of the original transaction, KKR will sell its entire stake, while Gland Pharma’s other investors, including founder PVN Raju, his son Ravi Penmetsa and the Vetter family, which controls Germany-based Vetter Pharma, would also sell a part of their stakes. Penmetsa would remain managing director. The residual stake will remain with the founder family. Commenting on the acquisition, Gland Pharma said in a statement, “The partnership will leverage synergies as foreseen by the management teams of both Gland Pharma and Fosun Pharma. Some of these synergies include the bio-similar programme developed at Fosun