Fosun Pharma plans to bid for German generic drugmaker Stada

China's Shanghai Fosun Pharmaceutical is planning to join the fray for German generic drugmaker Stada Arzneimittel AG (Stada), which has already received bids from two private equity consortia, Reuters yesterday reported, citing people close to the matter.

Fosun Pharma, a unit of Chinese conglomerate Fosun International, is also holding early-stage talks with private equity firms including CVC Capital Partners about a potential joint bid, but may decide initially to go it alone with a view to taking financial investors on board later, the report said.

Last month, Stada said that it has received two takeover offers including a €3.5-billion ($3.83 billion) bid from private equity firm Cinven Partners. (See: German generic drugmaker Stada receives $3.83-bn takeover bid from Cinven Partners)

''STADA Arzneimittel AG confirms that it has received two legally non-binding expressions of interest regarding a bid for the acquisition of up to 100 percent of the shares in the Company, one of which is from Cinven Partners LLP at an indicative takeover price of Euro 56.00 per STADA share,'' the Bad Vilbel, Germany-based company had said in a statement.

German activist investor Active Ownership Capital, with a 7-per cent stake, has been in a year-long effort to improve Stada's profitability and was able to oust the company's chairman during annual meeting late last year.

Stada is expecting to receive so-called confirmatory bids from a consortium comprising Advent and Permira as well as from rivals Bain and Cinven, and final bids are due just before Easter, the report added.

Founded in Dresden in 1895 as a cooperative pharmacy, Stada specialises in the production of generic and over-the-counter drugs.

Stada has expanded internationally since 1986 by buying companies in Austria, Denmark, Switzerland, Spain, Italy, Britain, Russia Serbia, Portugal, and Asia.

Generics generate 58 per cent while branded products 40 per cent of the company's annual sales of €2.12 billion.

Since 2010, Fosun International has spent billions buying foreign firms in the healthcare, tourism, fashion firms and banking industry in the US and Europe.

It owns US clothing label St John, Greek jeweller Folli Follie, US insurer Meadowbrook, a 5-per cent stake in the world's oldest travel company Thomas Cook, a controlling stake in French leisure company Club Méditerranée, and wholly owns US insurer Ironshore and Portuguese insurer Caixa Seguros.

It also holds a majority 95.6-per cent stake in Alma Lasers, an Israeli manufacturer of lasers used in cosmetic surgery.

Last year, Fosun Pharma acquired a controlling 96-per cent stake in Hyderabad-based injectable drugmaker Gland Pharma Ltd. for $1.4 billion (Rs9.42 crore),

Shanghai Stock Exchange-listed Fosun covers key aspects of the pharmaceutical and health industry chain, from research and development, pharmaceutical manufacturing, medical diagnostics and medical devices to the pharmaceutical distribution and retail and medical services for the public health contribution.