Week's news analysis

Gland Pharma buys Cenexi for 120 million euros

By Editors - 5 december 2022
Cenexi / DR

Gland Pharma has announced, through its wholly owned subsidiary Gland Pharma International PTE, Singapore, that it has entered into an agreement to acquire 100% of Cenexi Group for an equity value not exceeding 120 million euros (enterprise value of 230 million euros).

Gland Pharma was established in 1978 in Hyderabad, has grown over the years from a contract manufacturer of small volume liquid parenteral products, to become one of the largest and fastest growing injectable-focused companies, with a global footprint across 60 countries, including the United States, Europe, Canada, Australia, India, and other markets.

Gland Pharma has a wide range of injectables, including vials, ampoules, pre-filled syringes, lyophilized vials, dry powders, infusions, oncology, and ophthalmic solutions and also enjoys the distinction of having pioneered Heparin technology in India.

Gland Pharma would inject as part of this operation a shareholder loan of €90.4 million to Cenexi to help it repay its debts. Separated from Roche Holding in 2004, Cenexi develops and manufactures sterile and injectable pharmaceutical products, with three manufacturing sites in France (Fontenay-sous-Bois (head office), Hérouville-Saint-Clair, Osny) and one in Belgium (Braine -Alleud).

Cenexi generates 70% of its turnover in the manufacture of sterile and injectable pharmaceutical products. Most of its revenue comes from Europe with exports to world markets. Its turnover fell to €184.1 million in 2021 from €195.3 million a year earlier.

The acquisition will allow the Indian firm to expand its ability to offer products and services in the European market.

According to Kotak Institutional Equitie, Cenexi's return ratios (post-acquisition) for CY22E would be much lower than those of Gland. Gland Pharma falls 5% after announcing Cenexi Group acquisition

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