Mankind Pharma to acquire 100% stake in BSV

Mumbai, July 26th, 2024: 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.

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. BSV’s dedicated in-house R&D centre along with a dedicated team of 60+ scientists, a strong product pipeline, coupled with a diverse domestic product portfolio offering huge scalability potential through niche filings across markets.

BSV has a niche portfolio offering in Women’s Health, encompassing the entire lifecycle – from fertility to post-pregnancy. BSV has one of the most comprehensive portfolio in fertility segment to scale in both India and International markets amid increasing IVF penetration. The company remains committed to delivering high quality, innovative healthcare solutions at affordable prices to meet the evolving needs of patients and healthcare providers worldwide.

Rajeev Juneja, Vice-chairman and Managing Director, Mankind Pharma Ltd. shared “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.”

Sheetal Arora, Chief Executive Officer and Whole-time Director, Mankind Pharma Ltd. shared “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 specialized offerings.”

Shweta Jalan, Managing Partner and Head of Advent India, commented, “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.”

Pankaj Patwari, Managing Director, Advent India, said, “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’.”

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

BSV reported revenues of INR 1,723 crore in FY24, delivering robust 20% y-o-y growth with adjusted EBITDA Margins of 28%. The business has grown at ~21% revenue CAGR[ii] over the last 3 years.

Moelis & Company acted as exclusive financial advisor and AZB & Partners acted as legal counsel to Mankind Pharma. Advent and BSV were advised by Jefferies LLC and J.P. Morgan as financial advisors and Khaitan & Co as legal counsel.