Shanghai Pharmaceuticals Holding Co. Ltd. and Shanghai Fosun Pharmaceutical (Group) Co. Ltd. are bidding for a stake in U.S. drugmaker Arbor Pharmaceuticals LLC, Bloomberg News reported, citing people familiar with the matter.
According to the sources, the buyer would acquire 20% to 30% of the KKR & Co. LP-backed specialty pharmaceutical company.
Arbor may use the capital raised from the deal — valued between $600 million and $700 million — to grow its business ahead of a potential IPO, Bloomberg said.
Back in March, the Chinese pharmaceutical giant was linked to a potential bidding war for Stada Arzneimittel AG, offering up to $4 billion for the German drugmaker.
Earlier in August, Fosun's $1.3 billion bid to buy Gland Pharma Ltd. was blocked by India's Cabinet Committee on Economic Affairs.
Shanghai Pharma is separately mulling over acquiring Cardinal Health Inc.'s Chinese business since it was put on the block in July.
Atlanta-based Arbor Pharmaceuticals LLC specializes in prescription medication in the cardiovascular, hospital and pediatric markets. Its developmental product pipeline also includes medicines in urology, oncology, psychiatry and dermatology.