Fosun Pharma mulls sale of Indian drug maker Gland as Chinese group seeks to shore up balance sheet

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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

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Fosun Pharma is in talks with prospective buyers to sell its stake in India’s Gland Pharma. Photo: Reuters

Bloomberg

Published: 3:02pm, 29 Nov 2022

Billionaire Guo Guangchang’s Shanghai Fosun Pharmaceutical Group is considering a sale of Indian drug maker Gland Pharma after receiving interest from potential buyers, people familiar with the matter said.

Fosun Pharma, a listed arm of Chinese conglomerate Fosun International, has been working with an adviser as it informally gauges interest in its controlling stake in Gland, the people said. Companies in the industry and buyout firms are in the early stages of studying the business, the people said, asking not to be identified because the matter is private.

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.

Fosun is also looking to sell French resort operator Club Med. Photo: Shutterstock

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 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

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