Shanghai Fosun Pharma halts share trading

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Shanghai Fosun Pharmaceutical (Group) Co Ltd, a China-based drug maker listed on Hong Kong stock exchange, announced trading halt on Thursday pending an important announcement.

On May 9, 2016, Fosun Pharma said it made a non-binding proposal to acquire majority stake from the existing shareholders of Hyderabad-based Gland Pharma.

The trading halt assumes significance in the backdrop of Fosun's bid to acquire Gland Pharma, according to trade analysts.

"At the request of Shanghai Fosun Pharmaceutical (Group) Co Ltd (the company), trading in the shares (stock code: 02196) of the company on The Stock Exchange of Hong Kong Limited will be halted with effect from 9 am on Thursday, July 28, 2016, pending the release of an announcement containing inside information in relation to a possible notifiable transaction," Fosun Pharma said in a regulatory filing.

Gland Pharma official were not available for comments.

An e-mail sent to Fosun Pharma remained unanswered.

Gland Pharma, incorporated in 1978, is engaged in the manufacture of injectable drugs.

It is the first injectable drug manufacturer in India which has been approved by the United States Food and Drug Administration and has obtained the Good Manufacturing Practice Certification in various markets in the world.

Its main business model is joint development of products and introduction of licenses to provide all global major pharmaceutical companies with the manufacturing services in relation to injectable generic drugs.