BENGALURU (Reuters) -China’s Shanghai Fosun Pharmaceutical Group Co Ltd is considering a sale of Indian drugmaker Gland Pharma Ltd, Bloomberg News reported on Tuesday, citing people familiar with the matter.
Fosun, which holds a 57.86% stake in Gland Pharma, did not immediately respond to Reuters’ request for comment. Gland Pharma declined to comment.
The Chinese firm has been working with an adviser, while companies in the industry and buyout firms are in the early stages of studying the business, according to the report.
Fosun is yet to initiate a formal sale process of its stake in Gland Pharma, the report added.
Shares of the Indian drugmaker surged 8.7%, their biggest intraday gain since July 2021.
Fosun Pharma’s debt-laden parent, Fosun International Ltd, which was once one of China’s most acquisitive dealmakers, has done a series of stake reductions and sales this year.
As of last close, Gland Pharma shares were down 54.8% for the year, giving it a market value of about $3.5 billion. The stock is up just 2.1% since it listed in November 2020.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Savio D’Souza and Eileen Soreng)
