Indian media sources, including ET Now, have reported that Shanghai Fosun Pharmaceutical Group Co., Ltd (SHA: 600196) has dropped plans to sell its stake in Indian pharmaceutical firm Gland Pharma Ltd (NSE: GLAND). This decision comes after Fosun was reported in November 2022 to have been considering the sale of its stake for an asking price of USD 3.8 billion.
Historical Acquisition and Public Listing
Fosun initially acquired a 74% stake in Gland for USD 1.091 billion in October 2017. Gland was later allowed to go public in India in 2020, raising RMB 1.11 billion (USD 155.2 million), which resulted in Fosun Pharma’s stake decreasing to 58.36%. Gland Pharma specializes in injectable generics across various fields, including antibiotics, oncology, and cardiology, and boasts a strong global presence.
Fosun International’s Cash Raising Efforts
Fosun Pharma’s parent company, Fosun International, is currently exploring options to raise cash to strengthen its balance sheet. Despite the initial plans to sell the stake in Gland Pharma, the company has now reportedly abandoned this strategy. Gland Pharma has issued a notice stating it had not been informed of any potential plans for a sale, and Fosun has also declined to provide further comment on the matter.-Fineline Info & Tech
