The Centre has stalled a $1.3-billion bid by Shanghai Fosun Pharmaceutical Group (SFP) to acquire an 86% stake in Hyderabad-based Gland Pharma, citing “genuine concerns” over proprietary technology developed by the Indian company going over to a Chinese pharma major.
Top government officials on Monday dismissed media reports that the decision was linked to the current border stand-off between the two countries.
Sources say Gland Pharma has a lead in injectibles, an area where Chinese firms lag Indian pharma companies. Gland Pharma says it has pioneered Heparin technology in India, and is a world leader in the Glycosaminoglycans range of molecules.
Last year, Chinese billionaire Guo Guangchang, who runs a diversified conglomerate under the banner of Fosun International, struck the billion-plus-dollar deal to buy Gland Pharma following the government’s decision to allow 74% foreign investment in pharma manufacturing through the automatic route.
After clearing FIPB, the proposed acquisition needed the nod of the Cabinet Committee on Economic Affairs.