Fosun Pharma mulls sale of Indian drug maker Gland as Chinese group seeks to shore up balance sheet
- Fosun Pharma acquired a 74 per cent stake in Gland for about US$1.1 billion in 2017 and listed the business three years later in Mumbai
- Hyderabad-based Gland specialises in injectable drugs such as antibiotics, oncology and cardiology treatments and has a presence in about 60 countries
Shares of Gland jumped as much as 5.7 per cent in Mumbai following the Bloomberg News report, their largest intraday increase in almost a month. They have fallen about 53 per cent this year, giving the company a market value of US$3.6 billion. Fosun Pharma shares in Hong Kong rose as much as 5.4 per cent.
Hyderabad-based Gland specialises in injectable drugs such as antibiotics, oncology and cardiology treatments and has a presence in about 60 countries, according to its website.
A sale would help Gland’s Chinese owner raise cash as the once-acquisitive group seeks to shore up its balance sheet. Fosun International has been exploring options for a number of assets, including French resort operator Club Med and some domestic food and drink operations, Bloomberg News has reported.
Fosun Pharma’s high valuation expectations could present a hurdle to any potential deal amid a tough financing environment, the people said.
It has not kicked off a formal sale process, and there is no certainty the deliberations will lead to a transaction, the people said.
Representatives for Fosun Pharma did not immediately respond to requests for comment, while a spokesperson for Gland declined to comment.
Fosun Pharma acquired a 74 per cent stake in Gland for about US$1.1 billion in 2017 from an investor group including KKR & Co. It listed the business three years later in an US$873 million initial public offering in Mumbai, according to data compiled by Bloomberg.