News

Mankind Pharma to Acquire Bharat Serums and Vaccines for Rs 13,630 Crores

Mankind Pharma’s share price initially rose 4.6% to ?2240.00 following the announcement but later stabilized. The transaction, expected to close in 3-4 months, will be funded through a mix of internal accruals, debt, and equity.

• By Pooja Chaturvedi Sah
• New Delhi
• Jul 26, 2024

News

In a landmark move, Mankind Pharma Limited has signed a definitive agreement to acquire Bharat Serums and Vaccines Limited (BSV) from private equity giant Advent International for an enterprise value of approximately ₹13,630 crores. 

The deal, subject to closing adjustments, represents a significant strategic expansion for Mankind Pharma in the Indian pharmaceutical landscape.

 Strategic Expansion in Women's Health and Critical Care

The acquisition positions Mankind Pharma as a key player in the Indian women’s health and fertility markets. Mankind Pharma’s Vice-Chairman and Managing Director, Rajeev Juneja, emphasized the importance of this acquisition, stating, “BSV’s acquisition represents a pivotal milestone in Mankind’s journey, establishing us as market leader in the Indian women’s health & fertility segment. We believe women’s health & fertility segment has massive opportunity along with strong growth visibility globally, led by structural tailwinds. BSV's established Specialty R&D Tech Platforms with complex portfolio across Women’s health, Fertility, critical care, and Immunoglobulin segment perfectly aligns Mankind Pharma's strategic vision to expand its footprint in high entry barrier portfolio.” 

Growth Potential and Synergies

Sheetal Arora, CEO and Whole-time Director at Mankind Pharma, highlighted the acquisition’s potential, noting, “Mankind’s strategic acquisition of BSV with branded specialty pharma portfolio across India and Emerging Markets presents immense growth potential and will add to existing growth velocity of Mankind. Moreover, BSV’s business will be highly synergistic with our comprehensive product portfolio, expansive field force and doctor coverage.” 

Advent India’s Managing Partner and Head, Shweta Jalan, commented on the successful collaboration: “Mankind’s investment in BSV is a testament to our approach of identifying and nurturing unique businesses. We are confident that Mankind Pharma and BSV’s management team will continue the accelerated journey to build one of India’s largest pharma companies.” 

High-Value R&D and Market Presence

BSV, with a strong emphasis on R&D and a diverse product portfolio, reported revenues of ₹1,723 crores for FY24 and demonstrated robust growth with an EBITDA margin of 28%. The company’s products span women's health, fertility, and critical care, with a significant presence in over 70 countries. 

Sanjiv Navangul, CEO & Managing Director of BSV, expressed enthusiasm about the future: “This acquisition reinforces our commitment towards bringing cutting-edge products and expanding our access to millions of patients globally. We look forward to growing together with Mankind Pharma and exploring new opportunities in healthcare.” 

Market Reaction and Transaction Details

Mankind Pharma’s share price initially rose 4.6% to ₹2240.00 following the announcement but later stabilized. The transaction, expected to close in 3-4 months, will be funded through a mix of internal accruals, debt, and equity. 

Bharat Serums and Vaccines reported a revenue contribution of 54% from domestic markets and 46% from branded international sales in FY24. Moelis & Company and AZB & Partners advised Mankind Pharma, while Advent and BSV were advised by Jefferies LLC and J.P. Morgan, with Khaitan & Co serving as legal counsel.