Indian CDMO Gland Pharma to acquire French CDMO Cenexi

Gland Pharma, an Indian contract development and manufacturing organization (CDMO), through its Singapore subsidiary Gland Pharma International, has agreed to acquire Cenexi, a French CDMO, at an enterprise value of €230 million.

In this regard, the parties have signed a ‘Put Option Agreement’, which is expected to help Gland Pharma foray into the European CDMO space and provide access to know-how and development capabilities in sterile forms including for ophthalmic gel, needleless injectors, and hormones.

Cenexi and its subsidiaries are involved in the business of CDMO of pharmaceutical products with know-how in sterile liquid and lyophilized fill-finished drugs with expertise in oncology and complex products.

The French CDMO with four production facilities in Europe processes hormones, suspensions, and controlled substances.

Srinivas Sadu — Gland Pharma MD and CEO 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.”

Cenexi has three manufacturing plants in France and one in Belgium.

Employing around 1,372 people, the French CDMO generated revenue of €184.1 million for the calendar year 2021.

Christophe Durand — Cenexi CEO 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.”

“I am looking forward to working closely together and strengthening the Group’s global leadership as a sterile-focused CDMO.”

Cyril Amarchand Mangaldas served as the Indian legal and regulatory advisor to Gland Pharma while Clifford Chance was the international legal advisor.

Dechert served as legal advisor to Cenexi, and Natixis Partners and Jefferies International acted as financial advisors.

The planned acquisition is subject to regulatory approvals and certain closing conditions.