JOIN USShanghai Fosun buys major stake in Gland Pharma
Leading Chinese healthcare provider Shanghai Fosun Pharmaceutical has decided to acquire approximately 86% in Hyderabad-headquartered Gland Pharma for around $1.26 billion.
Based on the agreement, Fosun Pharma will purchase all KKR Floorline Investments-owned shares of Gland, in addition to shares purchased from other shareholders of the company. P V N Raju, founder of Gland, and his son, Ravi Penmetsa, will continue to be on the board, and Penmetsa will continue as managing director and chief executive officer. The family will retain a stake in Gland, a release said.
Fosun Pharma is a leading researcher, developer, producer and retailer of biopharmaceutical products worldwide. Following the close of the transaction, Gland will remain headquartered in Hyderabad, the release said.
“This transaction truly demonstrates the strong expertise of our people and the potential for Indian companies to improve health care in markets worldwide. We look forward to continuing our work to research, develop and provide medical products from India and continue to add capacity at our facilities,” Penmetsa said.
“We have benefited from the experience of KKR, which brought the skills that enabled Gland to grow and develop as a multinational leader in health care. We achieved improved performance and look forward to building upon that foundation,” Penmetsa added.
Fosun Pharma chairman Chen Qiyu said that the deal will help the company increase its global presence and provide better services to its patients. “The deal will greatly strengthen Fosun Pharma’s global presence. It will enable us to provide more high-quality products and services to our patients worldwide. Fosun Pharma is dedicated to implementing our investment model of ‘Combining China’s Growth Momentum with Global Resources’ with the win-win cooperation with Gland,” Chen Qiyu said.
Striking thedeal
Shanghai Fosun to acquire 86% in Gland Pharma
It will purchase all KKR Floorline Investments-owned shares of Gland
Gland will remain headquartered in Hyderabad