Deerfield, IL-based Baxter, which specializes in parenteral nutrition and intravenous solutions is one of two companies that have bid for Hyderabad, India-based Gland Pharma, a contract manufacturer of generic injectables. Baxter is being represented by Citigroup. The other company in the running is the Shanghai Fosun Pharmaceutical (Group) Co. Ltd, a Hong Kong-listed company, reports Live Mint.
Economic Times says that multiple sources have valued the deal at $1.1 to $1.2 billion. Private equity firm KKR and Co. owns a 40% stake in Gland Pharma, while the rest is held by the founders of Gland Pharma led by Ravi Penmetsa. Sources also claim that the owners were hoping to get $1.5 billion for Gland and that Baxter was seen as the front-runner.
“The global generic injectables market is $17 billion and is of significant importance in the value chain,” said Narayan Shetkar, director, Singhi Advisors, a Mumbai-based boutique investment bank. Given supply constraints, most global companies would be very interested in buying a maker of generic injectables and pay a sizeable premium, he added.