Mankind Pharma buys 100 pc stake in Bharat Serums for Rs 13,630 crore

Advent acquired a 74 per cent stake in BSV in February 2020, providing a complete exit to private equity investors OrbiMed Asia and Kotak PE and a partial exit to the promoter Daftary family. Advent bought the remaining 26 per cent stake from the Daftary family later following approval from the Department of Pharmaceuticals.

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, Mankind Pharma said.

Unlisted BSV reported revenues of Rs 1,723 crore in FY24, delivering robust 20% y-o-y growth with adjusted EBITDA margins of 28 per cent. The business has grown at 21 per cent revenue CAGR over the last 3 years.

Mankind Pharma, which has a market capitalisation of Rs 85,892 crore, reported a revenue of Rs 9,264 crore and a net profit of Rs 1,823 crore for FY24. The company’s shares closed 1.81 per cent higher at Rs 2,143.90 on the BSE on Thursday.

BSV is engaged in the business of research, development, licensing, manufacturing, importing, exporting, marketing and distribution of branded pharmaceutical formulations, active pharmaceutical ingredients (API), biotech and biological formulations and/ or API, food and health supplements, medical devices and ayurvedic medicines in each case, in the therapeutic areas such as gynaecology, in-vitro fertilisation (IVF), critical care and/or emergency medicines for human use.

BSV has six subsidiaries in India, Philippines, Germany, USA and Malaysia. Further, BSV has business operations in more than 50 countries.

“With over five decades of leadership in biopharmaceuticals, BSV has developed recombinant and niche biologic products in-house, demonstrating its strong R&D capabilities and boasts of a robust branded product portfolio across women’s health, fertility and critical care, with a few of its marque brands enjoying a strong leadership position in their respective therapy areas,” Mankind Pharma said.

“BSV’s dedicated inhouse R&D centre along with a dedicated team of 60 plus scientists, a strong product pipeline, coupled with a diverse domestic product portfolio offering huge scalability potential through niche filings across markets,” it said.

Rajeev Juneja, Vice-chairman and MD, Mankind Pharma, said, “BSV’s acquisition represents a pivotal milestone in Mankind’s journey, establishing us as market leader in 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. “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,” Juneja said.

According to Shweta Jalan, Managing Partner and Head of Advent India, 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,” Jalan said.