Mankind Pharma, a prominent Delhi-based pharmaceutical company, has finalized an agreement to acquire Bharat Serums and Vaccines (BSV) from private equity firm Advent International for Rs.13,630 crore. This strategic acquisition is set to significantly enhance Mankind Pharma’s position in the Indian pharmaceutical market, particularly in women’s health and fertility, as well as other high-entry barrier segments such as critical care.
For Mankind Pharma, the acquisition—which includes a 100% ownership in BSV—represents a significant accomplishment. It would strengthen the company’s position in the women’s health and fertility medicine industry, which is anticipated to grow significantly on a global scale as a result of structural market tailwinds and rising demand. This action is in line with Mankind’s strategic goal of increasing its presence in sophisticated, high-value pharmaceutical markets.
BSV is recognized for its specialty R&D platforms and complex product portfolio, particularly in women’s health, fertility treatments, critical care, and immunoglobulins. This complements Mankind Pharma’s current product range and strategic goals. The acquisition is expected to provide Mankind with a stronger foothold in these specialized and high-growth areas, leveraging BSV’s established expertise and technology platforms.
The transaction is especially notable since Mankind Pharma beat off an Abu Dhabi Investment Authority and Baring Private Equity consortium, whose offer was marginally more than Rs.13,000 crore. BSV was listed for sale late last year by Advent International, which had previously purchased it in 2019 through two deals. Pharmaceutical companies and a number of private equity firms expressed interest in the bidding process.
Sheetal Arora, CEO and Whole-time Director of Mankind Pharma, stressed that the acquisition is evidence of the company’s approach to investing in and fostering distinctive enterprises. She emphasized how Mankind’s current product lines, field force, and doctor coverage will all benefit from BSV’s portfolio. It is anticipated that this synergy will increase Mankind’s EBITDA margins and bolster its standing as a pioneer in cutting-edge and niche medications.
BSV has demonstrated strong development, averaging a 21 percent yearly revenue rise over the last three years. In FY24, the company reported revenues of Rs.1,723 crore, a 20 percent increase from the previous year. The corporation runs manufacturing facilities in Germany and India and research and development centers in Malaysia, the Philippines, Germany, and India. It is a major player in the biopharmaceutical industry, with a global presence in more than 70 countries.
In general, Mankind Pharma’s acquisition of BSV is expected to improve its product portfolio, greatly strengthen its position in the market, and spur additional growth in both local and foreign markets.
SOURCE:
THE BUSINESS LINE
