KKR to acquire minority stake in Gland Pharma for $200 million
Hyderabad: Gland Pharma Limited, a city- based generic injectable drug maker, Thursday announced it has reached an agreement for selling a minority stake to KKR, a leading global investment firm, for about USD 200 million.
The agreement includes KKR's acquisition of the entire stake held by Evolvence India Life Sciences Fund, an existing private equity investor in Gland Pharma.
Gland Pharma Founder-Chairman P V N Raju said the agreement assumes importance as his company was at an important stage of evolution.
"Our partnership with KKR will help us in our next phase of growth as we look to materially expand our manufacturing capacities and invest more in our development work with the goal of expanding our product registrations," Raju said in a statement.
"We thank the Vetter family of Ravensburg, Germany, who are investors in Gland Pharma, for inspiring Gland Pharma in the niche field of pre-filled syringes," Raju added.
Established in 1978 and based in Hyderabad, Gland Pharma develops and manufactures generic injectables primarily for the US market, besides for India and other semi-regulated markets.
In 2003, Gland Pharma was the first company in India to get US Food and Drug Administration (FDA) approval for pharmaceutical liquid injectable products, the statement said.
Gland Pharma has also pioneered pre-filled syringe technology in India and export products in this format to the US market.
Having pioneered Heparin technology in India, Gland Pharma has a strong position in the US market for that product through its marketing partner, the release said.
Gland Pharma Vice Chairman and Managing Director Ravi Penmetsa said the company is "excited about its future given the strong pipeline of innovative injectable products that are awaiting FDA approval.
"We wish to thank Evolvence India Life Sciences Fund for its contribution in positioning the Company on an impressive growth trajectory, aided in particular by the team's pro-active engagement with the Company in addition to the capital invested", he said.
KKR India Chief Executive Sanjay Nayar said Gland Pharma has a track record of strong financial performance as well as long-standing relationships with Indian and international pharmaceutical companies and "we believe there is significant potential for it to grow these partnerships even further".
The transaction is subject to regulatory approvals and other customary closing conditions, said the statement.
It said KKR will acquire a minority stake in Gland Pharma Ltd for about USD 200 million.