Gland Pharma announces acquisition of Europe’s Cenexi Group for €120 mn, shares fall 4.37%

Gland Pharma announces acquisition of Europe’s Cenexi Group for €120 mn, shares fall 4.37%
Source: Company
  • A day after its parent Fosun Pharma said it was looking to sell its controlling stake in Gland Pharma, the company has announced its plan to acquire Europe’s Cenexi.

  • Acquisition to make Gland Pharma among the largest contract development and manufacturing companies.

  • Deal to be funded by internal accruals. Cenexi has presence across four manufacturing sites in Europe which include three sites in France and one site in Belgium.
Gland Pharma Limited, a generic injectable focused contract development and manufacturing company, on Wednesday announced that it would acquire Cenexi Group through its wholly owned subsidiary Gland Pharma International PTE, Singapore. Gland’s subsidiary has entered into a put option agreement to acquire 100% of Cenexi Group for an equity value not exceeding €120 mn. The enterprise value of the same stands at €230 mn. 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.”

Founded in 2004, Cenexi, along with its subsidiaries, is engaged primarily in the business of contract development and manufacturing organization (CDMO) of pharmaceutical products with expertise in sterile liquid and lyophilized fully 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. It has an employee strength of 1,372 including 1,252 employees across 4 manufacturing sites and 120 employees for services. Its revenue for CY21 stood at €184.1 million.

Gland Pharma has a strategic focus on expanding its CDMO offerings in the European market and has been looking to build a manufacturing presence in the market. The acquisition provides Gland Pharma access to leading know-how and development capabilities in sterile forms including for ophthalmic gel, needleless injectors and hormones. Gland Pharma’s ability to support future investments in expanding manufacturing footprint will help build Cenexi as a major CDMO player in the European market. Gland and Cenexi can leverage their long- standing customer relationships to generate synergistic benefits for both entities along with helping Gland enter the branded CDMO space.

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. This acquisition would help expand our global presence and further solidify Gland’s identity as an injectable focused CDMO company. He said: “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.”


Cenexi is currently owned by a private equity investor, after the promoters sold out. Commenting on the proposed acquisition, 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.”

The proposed acquisition is subject to receipt of necessary regulatory approvals and satisfaction of certain conditions. The stock of Gland Pharma was also in the news as Fosun Pharma, the listed arm of the Chinese conglomerate Fosun International, was looking to sell its controlling stake in Gland Pharma for an estimated $3.6 bn. At the time of publishing, shares of Gland Pharma were down 4.37% in morning trade after rallying on Tuesday.


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