Warburg Pincus and ChrysCapital will face off against TPG, Blackstone, EQT, and Mankind Pharma in the acquisition of BSV Group, formerly known as Bharat Serum & Vaccines Ltd., in a consortium deal. These investors have expressed strong interest in the acquisition, putting the potential worth of BSV Group at Rs 12,000–13,000 crore ($1.4–1.5 billion). All of them have placed non-binding bids. The existing owner, Advent International, opted to sell the biopharma company, which is why there is more interest now.
In addition, Dr. Reddy’s Laboratories has expressed interest and is anticipated to enter the competition; however, it has asked for more time to submit its offer. It is expected that Dr. Reddy would submit his non-binding offer within the next week. The following four to six weeks will be dedicated to this transaction’s due diligence, with the expectation that final offers will be filed by July.
JP Morgan and Jefferies were chosen by Advent International earlier this year to manage the sale of the biopharma company located in Mumbai. Five years prior, Advent had paid Rs 3,500 crore ($500 million) for a majority share in BSV Group. Under Advent’s leadership, the company has grown significantly since then.
BSV Group, which was founded in 1971, is well-known for creating, producing, and selling pharmaceutical, biotech, and biological formulations. Monoclonal antibodies, reproductive hormones, antitoxins, antifungals, anesthetics, cardiovascular medications, and diagnostic items are among the products offered by the organization. Approximately three-fourths of BSV’s sales are generated by the women’s health category. This includes artificial reproductive technologies such as in-vitro fertilization (IVF) and hormones that stimulate the ability to procreate. The critical care section accounts for the remaining sales and includes antifungals, anesthetics, injectables, serums for snake bites, and antibodies for those with impaired immune systems.
The BSV Group operates manufacturing facilities in Hyderabad and Mumbai in addition to an R&D facility located in Navi Mumbai. Additionally, the business has wholly-owned subsidiaries in India, the Philippines, Germany, and the United States. The US company acts as a center for R&D and clinical trials, the German plant concentrates on API manufacturing, and the Philippines subsidiary acts as a marketing arm. The BSV Group recorded an EBITDA of Rs 480 crore on sales of Rs 1,700 crore in the fiscal year 2024 (FY24), with a target of Rs 2,000 crore in sales by the next fiscal year, FY25.
Using a slump sale that included both cash and shares, BSV Group purchased TTK Healthcare’s human pharmaceutical sector in March 2022 for Rs 805 crore. This purchase, which placed a strong emphasis on infertility and gynecology products, was complementary to BSV’s existing portfolio. Top brands from TTK include the calcium supplement Ossopan, the galactagogue Lactare, infertility brands like CCQ, Evaserve, and Carni-Q, and the respiratory medication Levokast. The goal of BSV was to improve its market position in the critical care and women’s health sectors, and this acquisition fit that goal.
The Indian pharmaceutical industry has seen significant consolidation thanks in large part to private equity investment. Still, Indian pharmaceutical companies such as Aurobindo, Torrent, and Mankind are aggressively looking for new avenues for expansion in their home country as well as abroad. Dr. Reddy’s Laboratories is once again considering acquisitions for inorganic growth following a protracted break. The specialization of BSV Group, especially in the IVF and critical care sectors, which have distinct sales and distribution channels like fertility clinics, hospitals, and government contracts, is what makes them appealing.
The acquisition of BSV Group represents a strategic opportunity for the competing firms to enhance their presence in the biopharma sector, particularly in the high-growth segments of women’s health and critical care. The outcome of this competitive bidding process will likely shape the future landscape of the Indian pharmaceutical industry, driving further consolidation and innovation in the sector.
The rival companies see the acquisition of BSV Group as a strategic chance to increase their market share in the biopharma industry, especially in the rapidly expanding critical care and women’s health sectors. The result of this competitive bidding process will probably influence future developments in the Indian pharmaceutical business, encouraging further innovation and consolidation within the field.
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MEDICAL DIALOGUES