Fosun Pharma sold a 4.55% stake worth ₹2,121.5 crore in Gland Pharma through open-market transactions on September 4, reducing its holding from 51.77% to 47.22%. According to block deal data published by the National Stock Exchange, Fosun Pharma Industrial Pte Ltd, a wholly owned subsidiary of Shanghai Fosun Pharmaceutical, offloaded 75,05,500 shares in 11 tranches at an average price of ₹2,826.60 per share. The three major buyers included Kotak Mahindra Mutual Fund (₹789.47 crore for 1.7% stake), Axis Mutual Fund (₹383.57 crore for 0.82% stake), and ICICI Prudential AMC (₹293.68 crore for 0.63% stake). Gland Pharma shares ended nearly 1% higher at ₹2,932.40 on September 4, their highest closing level since August 14, amid heavy trading volumes. Other institutional investors participating included Aditya Birla Sun Life MF, Mirae Asset MF, Sundaram MF, SBI Life Insurance Company, HDFC Standard Life Insurance, and Kotak Mahindra Life Insurance Company, along with Paris-based financial services firm Societe Generale and private institutional investment fund NRSGVCC.
In a significant regulatory development, Gland Pharma received zero Form 483 observations from the USFDA following a routine Good Manufacturing Practice (GMP) inspection at its VSEZ Sterile Oncology Formulations Facility and API Facility in Visakhapatnam between August 24, 2026 and September 1, 2026. As reported by The Economic Times, the company informed exchanges on September 1 about this successful inspection outcome. This regulatory clearance is expected to strengthen the company's position in the US market and enhance investor confidence in its manufacturing capabilities.
Gland Pharma reported robust financial results for Q1 FY27, with consolidated net profit of ₹317 crore for Q1FY27, up 47% year-on-year from ₹215 crore in the corresponding quarter last year. As reported by The Economic Times, revenue from operations rose 19.5% year-on-year to ₹1,800 crore from ₹1,506 crore in Q1FY26. EBITDA increased 37% year-on-year with adjusted EBITDA margin standing at 28%. During Q1FY27, Gland Pharma's quarterly R&D investment stood at ₹77.2 crore, while adjusted EBITDA increased 37% year-on-year. The company's diversified business model showed strong performance with the CDMO business contributing 50% of revenues and growing 20% year-on-year, while the B2B business accounted for the remaining 50% of revenue and grew 19% year-on-year.
The company's diversified business model showed strong performance across segments. According to The Economic Times, the contract development and manufacturing organisation (CDMO) business contributed 50% of revenues and grew 20% year-on-year in Q1 FY27. The business-to-business (B2B) business also contributed 50% of revenues and grew 19% year-on-year. The company's research and development expenditure stood at ₹772 million, accounting for 4% of consolidated revenue, focused on complex product development and filings. Established in Hyderabad in 1978, Gland Pharma has grown from a contract manufacturer of small-volume liquid parenteral products to a generic injectable manufacturing company with presence across 60 countries.
This represents the second major stake sale by Fosun Pharma in Gland Pharma in a little over two years, following a 6% stake divestment for ₹1,754 crore in June 2024. As reported by The Hindu BusinessLine, Fosun Pharma Industrial Pte Ltd is a subsidiary of Shanghai Fosun Pharmaceutical, which acquired about 74% in Gland Pharma in October 2017 at a valuation of not more than USD 1.09 billion. The current block deal marks a significant milestone as it brings Fosun Pharma's shareholding below the 50% mark for the first time since the 2017 acquisition, reflecting the company's strategic shift in ownership structure while maintaining its position as a leading generic injectable manufacturer serving nearly 90 countries across five continents.
