Gland Pharma to acquire 100% stake in French CDMO Cenexi for Euro 120m

HYDERABAD: As part of its plan to expand its footprint in Europe, Gland Pharma has entered into an agreement to acquire 100% stake in French contract development and manufacturing organisation (CDMO) Cenexi Group for an equity value not exceeding Euro 120 million (approx. Rs 1000 crore) after deducting the adjusted net debt.

The proposed acquisition is expected to give Gland Pharma a foothold in the European market and access to leading knowhow and development capabilities in sterile forms including for ophthalmic gel, needleless injectors and hormones.

Cenexi Group, which is focused on sterile liquid and lyophilized fill-finished drugs with capabilities in oncology and complex products, has four manufacturing sites in Europe. These include three plants in France and one in Belgium.

The French player, which has experience in processing specific substances such as hormones, suspensions and controlled substances, clocked revenues of Euro 184 million for calendar year 2021.

The Hyderabad-based generic injectables focused CDMO company informed the bourses on Tuesday that it has entered into a put option agreement to acquire Cenexi through its wholly-owned Singaporean subsidiary Gland Pharma International PTE Ltd.

The enterprise value of the acquisition, which is Gland Pharma’s first international buy, has been pegged at Euro 230 million (approx. Rs 1945 crore), the company said.

The acquisition will be made through internal resources and is expected to be completed by March or April of 2023, top Gland Pharma officials said.

It is, however, subject to the necessary regulatory approvals and satisfaction of certain conditions, they added.

Gland Pharma managing director & CEO Srinivas Sadu said the acquisition would support the company’s goal of deepening access into the European markets.

“This acquisition would help expand our global presence and further solidify our identity as an injectable focused CDMO company. Together, we see exciting synergy opportunities from leveraging our combined sterile expertise and development capabilities to expand our customer base and increase share of wallet. The acquisition will not only act as a sustainable lever for long term growth but would also establish a leading European platform to enrich our offering and increase value add to customers.”

The Cenexi buy will take up the Chinese Fosun Pharma owned Gland Pharma’s global headcount to around 5,400 from the existing India headcount of around 4,000 employees.