Advent, Baxter in race to acquire Gland Pharma

Private equity firm Advent International and US healthcare company Baxter International are among others planning to table separate takeover bids for Hyderabad-based drugmaker Gland Pharma Ltd, reports citing three people with direct knowledge of the matter said.

Gland Pharma founders and US private equity giant KKR & Co, who jointly own about 96 per cent of the company, are selling their combined stake valued at between $1 billion and $1.5 billion, the Reuters report said.

KKR invested about $200 million in Gland Pharma in 2013 for a near 30 per cent stake, valuing the company at about $600 million. (See: US buyout firm KKR to invest $200 mn in Gland Pharma)

The KKR transaction saw Gland Pharma's Ravi Penmetsa and other shareholders reducing their stake to around 60 per cent in the company.

Founded in 1978 as an exclusive facility for Small Volume Parenterals (SVPs), Gland Pharma develops and manufactures generic injectables primarily for the US market, and also for India and other semi-regulated markets.

The company became the first in India in 2003 to get US Food and Drug Administration (FDA) approval for pharmaceutical liquid injectable products. The company also pioneered pre-filled syringe technology in India and exports products in the format to the US market.

The unlisted company has pioneered Heparin technology in India and is a leader in the GlycosAminoGlycans range of molecules.