Mankind Pharma has clinched the deal to acquire Bharat Serums and Vaccines from private equity firm Advent International for ₹13,630 crore, the company said in a release.
The Delhi-based pharma firm said it has entered into a definitive agreement to acquire a 100% in Bharat Serums and Vaccines Limited (BSV) from Advent, for an enterprise value of around ₹13,630 crores, subject to closing-related adjustments.
“Mankind Pharma Limited has entered into a definitive agreement to acquire a 100% stake in Bharat Serums and Vaccines Limited (BSV) from Advent International (“Advent”), one of the world’s largest and most experienced private equity investors, for an enterprise value of approx. INR 13,630 Crores, subject to closing related adjustments,” the company said in a statement on exchanges.
This strategic move marks a significant leap for Mankind Pharma, positioning it as a market leader in the Indian women’s health and fertility drug market alongside access to other high entry barrier products in critical care with established complex R&D tech platforms, the company added.
“BSV’s acquisition represents a pivotal milestone in Mankind’s journey, establishing us as market leader in Indian women’s health & fertility segment. We are also delighted to welcome BSV’s 2,500+ members to our Mankind family. Together, we look forward to achieving even greater milestones and making a positive impact on women’s health worldwide,” said Rajeev Juneja, Vice-chairman and Managing Director, Mankind Pharma.
BSV’s established Specialty R&D Tech Platforms with complex portfolios across Women’s health, Fertility, critical care and Immunoglobulin segments aligned with Mankind Pharma’s strategic vision to expand its footprint in a high entry barrier portfolio.
Mankind Pharma pipped the combine of Baring Private Equity and Abu Dhabi Investment Authority that had bid a little over ₹13,000 crore, according to sources.
Advent International, which had acquired BSV in 2019 in two transactions, had put the company on the block late last year and the process has been going on for quite a while with several PE firms as well as pharmaceutical companies showing interest and submitting non-binding bids.
“Mankind’s investment in BSV is a testament to our approach of identifying and nurturing unique businesses, working with high-quality management teams and building these businesses into respected industry leaders,” said.
Mankind Pharma’s domestic pharma business’ product portfolio spans formulations across acute and therapeutic areas. Though over half of its revenues come from the metro and Tier 1 cities, the company has a good foothold in Tier 2 to 6 cities, that are not covered by the bigger pharma players. In the OTC segment, it has expanded to consumer wellness, while bolstering pregnancy care and sexual wellness. This is where the BSV acquisition would give it a strong boost and enhance its portfolio.
“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,” said Sheetal Arora, Chief Executive Officer and Whole-time Director, Mankind Pharma.
She pointed out that BSV’s business will be synergistic with Mankind’s product portfolio, expansive field force and doctor coverage.
“We are confident this would correspond to the expansion of EBITDA margins and thereby solidify our position as a company known for marketing innovative and specialized offerings,” she added.
BSV reported revenues of ₹1,723 crore in FY24, up 20 per cent on year with adjusted EBITDA margins of 28%. The business has grown at 21% revenue annually over the last 3 years.
Bharat Serums is a biopharmaceutical leader in women’s healthcare, assisted reproductive treatment, critical care and emergency medicine. It has R&D facilities in India, Ukraine, Germany, the Philippines and Malaysia, manufacturing facilities in India and Germany and presence in over 70 countries.
