Fosun’s IPO Plan For India’s Gland Hits Multiple Targets
Need For Funds, Military Tensions With India In Backdrop
With a proposed IPO, Gland Pharma’s parent company, Fosun Pharma, hopes to raise funds for its injectables business and possibly its COVID-19 vaccine. The move will also cut Chinese ownership against a backdrop of shaky relations between India and China. As investors warm up to pharma stocks, the timing seems right.
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While speculation mounts about Serum Institute being next in line for an RDIF partnership, Gland Pharma and Strides unit Stelis sign up to make COVID-19 vaccine Sputnik V. Part of the 550 million dose output tied up from India so far could be consumed domestically, but exports are a possibility as demand from European countries is set to jump.
Gland Pharma, controlled by Chinese group Fosun, makes shining debut on Indian stock markets despite a lukewarm response to its IPO. Will the buoyant market sentiment sustain amid edgy India-China relations?
Strides is expanding its presence in synthetic injectables via a new company, SteriScience, while keeping its biologics injectables business under Stelis. A head start with existing IP assets and those from a new joint venture with Brooks Labs will enable the fledgling firm to file its first ANDA in fiscal 2021, with break-even foreseen in two years.