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