Mankind Pharma has entered into a definitive agreement to acquire a 100% stake in Advent International’s Bharat Serums and Vaccines (BSV) for an enterprise value of Rs 13,630 crores, subject to closing related adjustments.
As per Mankind Pharma, this strategic acquisition of BSV from the private equity investors is a ‘significant leap’ in positioning itself 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.
That being said, BSV has a niche portfolio offering in Women’s health and fertility segment, encompassing the entire lifecycle- from fertility to post-pregnancy not just in India but across International markets amid increasing IVF penetration.
The same along with BSV’s dedicated inhouse R&D centre, dedicated team of 60+ scientists, strong product pipeline and diverse domestic product portfolio is believed to offer huge scalability potential through niche filings across markets to Mankind Pharma.
Additionally, this acquisition also falls in line with the company’s stated objective to expand its presence in high entry barrier complex portfolios and high potential OTX brands; with accretive EBITDA margins.
In FY24, BSV reported a revenue of Rs 1,723 crore in delivering robust 20% YoY growth with adjusted EBITDA margins of 28% as the business grew at about 21% revenue CAGR over the last three years.
Commenting on the development, Rajeev Juneja, Vice-Chairman and Managing Director, Mankind Pharma, said, “BSV’s acquisition represents a pivotal milestone in Mankind’s journey, establishing us as the market leader in Indian women’s health and fertility segment. We believe the women’s health and fertility segment has massive opportunities 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. 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.”
To this, Sheetal Arora, Chief Executive Officer and Whole-time Director, Mankind Pharma, added, “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. 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 specialised offerings.”
Furthermore, Shweta Jalan, Managing Partner and Head, Advent India, also mentioned, “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. With the building blocks in place, 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.”
To this, Pankaj Patwari, Managing Director, Advent India, added, “We are delighted that BSV has found the right home and is joining forces with Mankind Pharma. BSV’s deep-domain R&D capabilities and unique portfolio of products combined with Mankind’s strong pan-India coverage and growth orientation will provide significant synergies; bringing differential scale, reach and capabilities. We are excited for BSV to support Mankind’s aspirations of ‘Building a Healthier Bharat’.”
Concludingly, Sanjiv Navangul, CEO and Managing Director, BSV, also stated, “We are proud to be one of the few Indian companies that have several first-of-its-kind indigenously developed complex treatments that have delivered better patient outcomes. This acquisition reinforces our commitment towards bringing cutting edge products and expanding our access to millions of patients in India and across the globe. With a proven and established leadership in women’s health and critical care, our robust R&D pipeline, and best-in-class manufacturing, and above all, a dedicated and high-performing one-BSV team will add immense value to Mankind Pharma as we grow together, synergise our strengths and explore opportunities towards bringing healthcare closer to every home in India and across the world.”
