- A day after his parent
Fosun Pharmasaid it was looking to sell its majority stake in Gland Pharmathe company has announced its plan to acquire the European Cenexi.
- Acquisition to make Gland Pharma one of the largest contract development and manufacturing companies.
- Deal is financed by internal accruals. Cenexi is present in four production locations in Europe, including three locations in France and one in Belgium.
Gland Pharma Limited, a generic injectable focused contract development and manufacturing company, announced on Wednesday that it would acquire Cenexi Group through its wholly owned subsidiary Gland Pharma International PTE, Singapore. Gland’s subsidiary has entered into a put option agreement to acquire 100% of Cenexi Group for an equity value not exceeding €120 million. Its enterprise value is €230 million. The acquisition will be financed through internal accruals.
Commenting on the deal, Srinivas Sadu, Managing Director and CEO of Gland Pharma, said during an analyst call earlier today, “This deal would make Gland one of the largest players in the CDMO space. This acquisition will not only help to expand our footprint, but also accelerate the product portfolio in the European market. The company (Cenexi) has a good manufacturing presence in Europe where Gland Pharma can release some of our own products. All manufacturing sites are FDA approved.”
Established in 2004, Cenexi, together with its subsidiaries, is primarily engaged in contract development and manufacturing organization (CDMO) of pharmaceutical products with expertise in sterile liquid and lyophilized finished drugs, including capabilities in oncology and complex products. It is present in four production sites in Europe, including three sites in France and one site in Belgium. It has experience in handling specific substances such as hormones, suspensions and controlled substances. It has a workforce of 1,372, including 1,252 employees at 4 production sites and 120 service employees. Sales for CY21 amounted to € 184.1 million.
Gland Pharma has a strategic focus on expanding its CDMO offering in the European market and is looking to establish a manufacturing presence in the market. The acquisition gives Gland Pharma access to industry-leading know-how and development capabilities in sterile forms, including ophthalmic gel, needleless injectors and hormones. Gland Pharma’s ability to support future investments in expanding its manufacturing footprint will help Cenexi become a major CDMO player in the European market. Gland and Cenexi can leverage their longstanding customer relationships to generate synergistic benefits for both entities and help Gland enter the branded CDMO space.
According to Sadu, the proposed acquisition would be Gland Pharma’s first international acquisition and would support the company’s goal of deepening access to European markets. This acquisition would help expand our global presence and further solidify Gland’s identity as an injectables-focused CDMO company. He said: “Together we see exciting synergy opportunities by leveraging our combined sterile expertise and development capabilities to expand our customer base and increase market share. The acquisition will not only act as a sustainable lever for long-term growth, but would also create a leading European platform to enrich our offering and increase added value for customers.”
Cenexi is currently owned by a private equity investor after the promoters sold out. Commenting on the proposed acquisition, Christophe Durand, CEO of Cenexi said: “We see the combination of Cenexi with Gland Pharma as a natural partnership that would support both our long-term strategy to become a top sterile products player and would help us deliver the next phase of growth and international expansion for Cenexi.”
The proposed acquisition is subject to receipt of necessary regulatory approvals and the fulfillment of certain conditions. Gland Pharma’s share was also in the news as Fosun Pharma, the listed branch of the Chinese conglomerate
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