Fosun Pharma plans HK$1 billion buyback funded by Gland Pharma stake sale

Shanghai Fosun Pharmaceutical announced a plan to repurchase up to HK$1 billion of its Hong Kong-listed H shares over the next 12 months, saying the stock trades below the company’s intrinsic value; the shares may be canceled or held as treasury stock. The program is primarily funded by Fosun Pharma Singapore’s sale of about 6% of Gland Pharma for roughly $294 million to $296 million, reducing Fosun Pharma’s stake to about 45.76% while preserving control and continued consolidation of the Indian injectable-drug maker. Fosun said the proceeds will support research and development, the buyback and repayment of interest-bearing debt, while the transaction itself is expected to increase net assets rather than be booked as investment income. The move reflects stronger operating cash flow and improving contributions from innovative and international products, but the company continues to face substantial R&D demands and relatively modest growth in recurring profit, making the buyback both a shareholder-return measure and a test of capital-allocation priorities. The stock rose more than 5% in early Hong Kong trading after the announcements.