Fosun Pharma to Slash 5% Stake In Gland Pharma For A Cool $172 Million

Fosun Pharma Industrial Pte announced that it will reduce its stake in India's Gland Pharma Ltd through block deals after failing to sell it all at once. The company plans to sell 5% of the drugmaker for approximately $172 million via block trade, according to deal terms obtained by Bloomberg News. It has offered 8.2 million shares at a floor price of Rs 1,750 each, representing a 4.9% discount to the last closing price. Fosun Pharma, a fully owned subsidiary of Shanghai Fosun Pharmaceutical (Group) Co, currently holds about 58% of Gland Pharma, which holds a market value of $3.6 billion.

Fosun Pharma plans to conduct more block sales in the upcoming months to strengthen its balance sheet, unless buyout firms present an offer, according to sources familiar with the situation. These sources, who wished to remain anonymous due to the confidential nature of the information, stated that Fosun Pharma's high valuation expectations for Gland Pharma have hindered a potential sale to private equity firms. A Fosun Pharma representative declined to comment, and a representative for Gland Pharma did not respond to requests for comment. Gland Pharma, which specializes in injectable drugs including antibiotics, oncology, and cardiology treatments, operates in approximately 60 countries, including Australia, Canada, India, and the US, as noted on its website.