Gland Pharma Limited, a generic injectable focused CDMO company, yesterday announced that it has through its wholly owned subsidiary Gland Pharma International PTE. Ltd, Singapore entered into a Put Option Agreement to acquire 100% of Cenexi Group for an Equity Value not exceeding Euro 120 mn (Enterprise Value of Euro 230 mn).

Founded in 2004, Cenexi, along with its Subsidiaries, is engaged primarily in the business of Contract Development & Manufacturing Organisation (CDMO) of pharmaceutical products with expertise in sterile liquid and lyophilized fill- finished drug, including capabilities on oncology and complex products.

It has presence across four manufacturing sites in Europe which include three sites in France and one site in Belgium. It has experience in processing specific substances like hormones, suspensions and controlled substances. It has an employee strength of 1,372 including 1,252 employees across 4 manufacturing sites and 120 employees for services. Its revenue for CY21 stood at Euro 184.1 mn.

Gland Pharma has a strategic focus on expanding its CDMO offerings in the European market and build a manufacturing presence in the market. The acquisition provides Gland Pharma access to leading know-how and development capabilities in sterile forms including for ophthalmic gel, needleless injectors and hormones. Gland Pharma’s ability to support future investments in expanding manufacturing footprint will help build Cenexi as a major CDMO player in the European market. Gland and Cenexi can leverage their long- standing customer relationships to generate synergistic benefit for both entities along with helping Gland enter the branded CDMO space.

Commenting on the proposed acquisition, Srinivas Sadu, MD & CEO, Gland Pharma said “This proposed acquisition would be Gland Pharma’s first international acquisition, and it would perfectly support our goal of deepening access into the European markets. This acquisition would help expand our global presence and further solidify our identity as an injectable focused CDMO company. Together, we see exciting synergy opportunities from leveraging our combined sterile expertise and development capabilities to expand our customer base and increase share of wallet. The acquisition will not only act as a sustainable lever for long term growth but would also establish a leading European platform to enrich our offering and increase value add to customers.”

Commenting on the proposed acquisition, Christophe Durand, CEO, Cenexi said “We view the combination of Cenexi with Gland Pharma, as a natural partnership which would both, support our long-term strategy of becoming a top European sterile player and help us drive the next phase of growth and international expansion for Cenexi. We are very enthusiastic about combining our two organizations: the enhanced scale, compelling commercial synergies and geographic complementarity would drive significant added-value to customers, while relying on common values putting service and quality first, always. I am looking forward to working closely together and strengthening the Group’s global leadership as a sterile-focused CDMO.”

The proposed acquisition remains subject to receipt of necessary regulatory approvals and satisfaction of certain conditions.

Clifford Chance LLP acted as the international legal advisor to Gland Pharma, while Cyril Amarchand Mangaldas acted as the Indian legal and regulatory advisor. Jefferies International and Natixis Partners acted as financial advisors to Cenexi, while Dechert LLP acted as legal advisor.