Gland Pharma shares rise 7% on report Fosun Pharma is considering sale

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Gland Pharma shares rise 7% on report Fosun Pharma is considering sale

On Tuesday, Gland Pharma's shares rose over 7% after it was reported that China's Shanghai Fosun Pharmaceutical Group Co LtdFosun Pharmaceutical Group Co Ltd is considering a sale of the firm.

According to a Bloomberg report, the Chinese firm is working with an adviser, while companies in the industry and buyout firms are in the early stages of studying the business. Fosun holds a 57.86% stake in Gland Pharma.

Fosun is yet to initiate a formal sale of its stake in Gland Pharma, according to the report.

The drugmaker's shares gained as much as 8.7% on the report, their biggest intraday gain since July 2021.

Fosun International Ltd, which was once one of China's most acquisitive dealmakers, has done a series of stake reductions and sales this year, according to a report on Tuesday by the debt-laden parent of Fosun Pharma.

Gland Pharma shares were down 54.8% for the year, giving it a market value of $3.5 billion. The stock is up just 2.1% since it was listed in November 2020.

The Bloomberg report said Fosun Pharma's high valuation expectations could pose a potential hurdle to a potential deal as interest rates in the world are on the rise. It hasn't kicked off a formal sale process, and there is no certainty that the deliberations will lead to a transaction, Bloomberg reported.

Fosun Pharma acquired a 74% stake in Gland for $1.1 billion in 2017 from an investor group including KKR Co. According to Bloomberg, the business was listed three years later in an initial public offering of $873 million in Mumbai.