Gland Pharma To Acquire France-Based Cenexi Group

Gland Pharma Ltd.'s wholly owned Singapore-based subsidiary, Gland Pharma International PTE has agreed to acquire 100% stake in Phixen SAS—a French group operating under the name of ‘Cenexi’—on a slump sale basis.Gland Pharma has entered into a put option agreement with PCI Sino French Midcap Fund—an investment fund managed by Cathay Capital—which is the controlling seller as on Nov. 29, the company said in the exchange filing.A cash consideration of 120 million euros (around Rs 1,000 crore) has been decided on. In addition, Gland Pharma may have to repay certain debts of Cenexi, but the total amount of consideration will not exceed 210 million euros (around Rs 1,800 crore).Cenexi group comprises Phixen SAS, three holding companies and seven subsidiaries. It is engaged in the business of contract manufacturing and development organisation of pharmaceutical products, with expertise in sterile liquid and lyophilised fill-finished drugs, including capabilities on oncology products.The group's consolidated turnover was 184.1 million euros for CY21 and 100.1 million euros in H1 CY22. Its CY21 operating profits stood at 23.1 million euros and in H1 CY22, it earned Ebidta of 19.1 million euros.Cenexi HighlightsCenexi has four U.S. FDA approved manufacturing sites in Europe, of which three are in France and one is in Belgium. About 70% of its business is currently from sterile and injectable products, and it is expected to grow further, which could increase contribution from injectables to around 82% in the next four years. It has expertise in processing specific substances including hormones, controlled substances and oncology products. Majority of the revenue comes from Europe with exports to global markets.Its CY19 and CY20 revenues were 185.4 million euros and 195.3 million euros, respectively.The deal is subject to exercise of the put option by the seller and receiving necessary regulatory approvals.The management, in the press meet, told BQ Prime that the deal is expected to be completed by April-May 2023.With the acquisition, Gland Pharma—which is currently only into generic contract development and manufacturing company—will enter the branded CDMO space. It will also increase the company's revenues from Europe, the management said.'It is in line with our strategic roadmap of building a European manufacturing presence in sterile injectibles and increased customer base in Europe, including customers in biologics area. It will expand our CDMO offerings in the European market by around 4 billion euros in Europe and 20 billion euros globally (current market value of dosage forms offered by Cenexi as per market reports),' the company said in the press meeting.It will give the company access to leading know-how and development capabilities in sterile forms, including vials, pre-filled syringes and other innovative technologies such as ophthalmic gel and needle-less injectors fill and finish, Gland Pharma said.The deal will be funded from internal resources, the company said. 'We have cash on books of around Rs 3,800 crore currently and post the deal, we are expected to have Rs 2,000 crore,' the management said. They are looking at opportunities for inorganic expansion in technology, research and development and India branded products space.With regards to talks of stake sale by the holding company, the management said that they have not heard of anything from their promoters—Fosun Pharma—and hence, they declined to comment on the same.

Gland Pharma To Acquire France-Based Cenexi Group

Gland Pharma may have to repay certain debts of Cenexi, but the total amount of consideration will not exceed 210 million euros.

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Gland Pharma To Acquire France-Based Cenexi Group

Gland Pharma may have to repay certain debts of Cenexi, but the total amount of consideration will not exceed 210 million euros.

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