Gland Pharma, through its arm Gland Pharma International PTE. Ltd, Singapore, entered into a put option agreement to acquire France-based Cenexi Group for an equity value not exceeding €120 million (enterprise value of €230 million).

“This proposed acquisition would perfectly support our goal of deepening access into the European markets and would help expand our global presence and further solidify our identity as an injectable focused contract development & manufacturing organisation (CDMO),’‘ Srinivas Sadu, MD & CEO, Gland Pharma, said on Tuesday.

The acquisition, the first international buy for Gland Pharma, would also establish a leading European platform to enrich the Hyderabad-based company’s offerings, he added. Gland Pharma expects to complete the transaction in about 4-5 months from now.

‘Natural partnership’

Founded in 2004, Cenexi is engaged primarily in the business of CDMO of pharmaceutical products with expertise in sterile liquid and lyophilised fill-finished drugs, including capabilities on oncology and complex products. It has presence across four manufacturing sites in Europe which include three sites in France and one site in Belgium. It has experience in processing specific substances like hormones, suspensions and controlled substances. Cenexi has an employee strength of 1,372, including 1,252 employees across four manufacturing sites and 120 employees for services. Its revenue for CY21 stood at €184.1 million.

Christophe Durand, CEO, Cenexi, said: “We view the combination of Cenexi with Gland Pharma as a natural partnership which would both, support our long-term strategy of becoming a top European sterile player and help us drive the next phase of growth and international expansion for Cenexi.’‘

As per put option pact, an existing shareholder has a right (but not an obligation) to sell shares for a specific period and at a specific price or at a price to be calculated in accordance with a pre-agreed formula.

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