Fosun to buy KKR-backed Indian drugmaker for $1.4 billion

The first major move by the Shanghai Fosun Pharmaceutical Group Co Ltd has agreed to buy Gland Pharma - backed by KKR & Co LP - for about $1.4 billion.The deal which moves by the Fosun group since Guo Guangchang, founder of flagship holding firm Fosun International Ltd and one of China's best-known entrepreneurs, briefly went missing late last year.



The acquisition would also underscore a positive outlook for drugmakers in India, which is a major global supplier and counts the United States as its largest export market, helped by lower manufacturing and labour costs.Gland Pharma, based in the southern city of Hyderabad, owns four factories from where it supplies a variety of injectables – widely used medicines administered through vials, syringes, bags and pumps, which are harder to make than regular medicines.

Moody's Indian associate ICRA expects patents to expire on about $16 billion worth of injectables in the United States over four years through 2019, offering a growth opportunity for Indian suppliers. ICRA estimates the U.S. injectables market to grow at about 10 percent annually over five years.

Gland Pharma's founders and U.S. private equity firm KKR, who jointly hold roughly 96 percent of the drugmaker, will sell almost all of their stake to Fosun, said the person, who was not authorised to speak on the matter ahead of an announcement and so declined to be identified.


Source From : http://in.reuters.com/article/gland-pharma-m-a-fosun-pharma-idINKCN10809Z

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