Chinese Fosun Pharma also interested in acquiring Stada

The Chinese company Shanghai Fosun Pharmaceutical is planning to make a bid for the takeover of the German generic pharmaceutical company Stada, which is already the center of the battle between two consortiums.

Fosun Pharma has had preliminary negotiations with several funds, including CVC, regarding a joint takeover, but it might decide to first act alone and then bring in a financial adviser.

Following the pressure of the biggest shareholders to take into consideration the option of strategic partnership, consortiums Adventa and Permire, as well as Baina and Cinvena, showed interest in Stada. It is expected that the final bids will be known before this year's Easter.

Analysts estimate that partnerships between funds and pharmaceutical companies make sense, since companies from this field often stand to make significant savings in the acquisition process, which then gives the funds the advantage in a potential price war over the takeover.

The same sources note that, in Stada's case, the funds might offer up to EUR 60 per share, whereas the final bids will probably hover around the current level of EUR 58 per share, bringing the company's value to EUR 3.6 billion, Wisebroker reports.

STADA Grupa

Shanghai Fosun Pharmaceutical

Stada Germany

Hemofarm

Fosun Pharma

CVC

Advent

Permira

Bain

Cinven

medical drug manufacture