Fosun to cut stake in Indian firm

Shanghai Fosun Pharmaceutical Group has agreed to cut the size of the stake it will buy in India’s Gland Pharma to 74 percent, the Chinese drugmaker said yesterday.

It said Gland Pharma’s founding family wanted to retain a higher stake in the Indian firm because of its good performance.

Fosun had previously been targetting an 86 percent stake valued at about US$1.26 billion. It said in a statement to the stock exchange that the board had approved the new plan, which would involve investment of no more than US$1.09 billion.

The deal had earlier faced some concerns in India, a source has told Reuters.

Under the new terms, Fosun Pharma said it would spend no more than US$25 million for the Indian firm’s Enoxaparin prototype sales in the US, when it gets approval there, cutting the previously proposed amount by half.