Gland Pharma on Tuesday said it has entered into a put option agreement to acquire Europe-based Cenexi Group for up to EUR 120 million (around Rs 1,015 crore), marking its foray into the international markets.

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The company’s wholly-owned Singapore-based unit Gland Pharma International PTE has entered into a ‘Put Option Agreement’ to acquire 100 per cent of Cenexi Group for an equity value not exceeding EUR 120 million, the Hyderabad-based drug contract development and manufacturing company (CDMO) said in a statement.

Under the put option, an entity gets the right not obligation to sell a specified amont or stake at a predetermined price.

Founded in 2004, Cenexi, along with its subsidiaries, is engaged primarily in the business of contract development and manufacturing organisation (CDMO) of pharmaceutical products with expertise in sterile liquid and lyophilized fill-finished drugs, 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.

The company, which employs 1,372 people, has experience in processing specific substances like hormones, suspensions and controlled substances.

Its revenue for the 2021 calendar year stood at EUR 184.1 million.

“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,” Gland Pharma MD & CEO Srinivas Sadu said.

Cenexi CEO Christophe Durand said the combination of Cenexi with Gland Pharma will support their long-term strategy of becoming a top European sterile player and help drive the next phase of growth and international expansion.

“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,” he added. PTI MSS MR

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