Mankind Pharma to acquire 100% stake in Bharat Serums & Vaccines

Mankind Pharma has emerged as the frontrunner to acquire Bharat Serums & Vaccines (BSV), backed by Advent International, the company announced on Thursday.

“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. 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 said in an exchange filing

The company said that Swedish private equity firm EQT and the Abu Dhabi Investment Authority (ADIA) consortium are the other bidders in the acquisition process of buying BSV in the deal, which is estimated at a valuation between $1.5 billion and $2 billion.

“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," said Sanjiv Navangul, CEO & Managing Director, BSV.

Mankind Pharma earlier bid for Apax Partners-backed Healthium Medtech, a medical device maker, but KKR won the auction process in the end. According to the report, a buyout of Bharat Serums & Vaccines will improve Mankind Pharma's domestic operations as the company's product portfolio comprises formulations across acute and therapeutic areas.

Insight into Bharat Serums & Vaccines:

Advent International announced the buyout of a majority stake in BSV in November 2019, giving an exit to investors such as Orbimed Asia and Kotak PE and a partial exit to the promoters, the Daftary family. This deal resulted in the firm's $500 million valuation, as per the report.

The Mumbai-based pharmaceutical company Bharat Serums and Vaccines Limited was established in 1971 and develops, manufactures, and markets biological, biotech, and pharmaceutical formulations.

As per the rating firm ICRA Ratings report released in September 2023, the company's product portfolio consisted of plasma derivatives, monoclonal, fertility hormones, antitoxins, antifungals, anaesthetics, cardiovascular drugs, diagnostic products, etc. The company has a manufacturing facility in Ambernath, Maharashtra and Thane along with a R&D unit in Navi Mumbai. The company also has four wholly-owned subsidiaries in the US, Germany, the Philippines and India.