Gland pharma enters into agreement with Cenexi
Published On: Wednesday, November 30, 2022 | By: Team KnowMyStock
Shares of Gland Pharma slipped 5 percent to Rs 1,787.55 on the BSE in Wednesday's intra-day trade after the company entered into a Put Option Agreement to acquire 100 percent of Cenexi Group for an equity value not exceeding Euro 120 million (Enterprise Value of Euro 230 million). The acquisition would provide the company with the technical know-how in sterile forms, including ophthalmic gel, needleless injectors, and hormones said, analysts. As the acquisition fulfills the need for a local presence to gain business in European markets, it is looked at in a positive light by analysts. The acquisition will be funded through internal accruals. Commenting on the deal, Srinivas Sadu, Managing Director and CEO of Gland Pharma, said during an analyst call earlier in the day: “Thanks to this deal, Gland would become one of the largest players in the CDMO space. This acquisition will not only help expand footprint but also accelerate product portfolio in the European market.
The company (Cenexi) has a good manufacturing presence in Europe where Gland Pharma can release some of our own products. All manufacturing sites approved by FDA.”According to Sadu, the proposed acquisition would be Gland Pharma’s first international acquisition, and it would support the company’s goal of deepening access into the European markets.
Cenexi is primarily engaged in the business of Contract Development & Manufacturing Organisation (CDMO) of pharmaceutical products with expertise in sterile liquid and lyophilized fill-finished drug, including capabilities on oncology and complex products.
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