Fosun On Course To Full Indian Clearance For Gland Buyout
After several rounds of deferral, an Indian investment board has approved Fosun’s acquisition of Gland Pharma, clearing the way for the first Chinese mega acquisition in the Indian pharmaceutical space, although the deal is still expected to require the go ahead from a Cabinet committee on economic affairs.
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Chinese group Fosun’s landmark buyout of Gland Pharma appears less likely to go through in India, at least for now, though some experts claim that the deal has always been a tricky one from the Indian standpoint. Indo-China border tensions are unlikely to make things any easier.
Chinese pharma and biotech grew increasingly active in deal-makings in the past months, with the largest outbound acquisition on record in April, a €1.3bn takeover deal made by Creat Group to German Biotest, while domestic big pharmas allotting investment to set up biologic divisions.
Tensions between India’s apex drug pricing authority and industry appear set to intensify after the regulator flagged up over 600 “suspected” cases of overcharging. The way forward for both sides is probably only through constructive dialogue and a less combative approach. The Pink Sheet delves into the key sticking points around the standoff.