Mankind Pharma to buy Bharat Serums from Advent for $1.6 billion

Pregnancy test kit brand Prega News and Manforce condom maker Mankind Pharma Ltd said it will buy Bharat Serums and Vaccines Ltd (BSV) from private equity firm Advent International for an enterprise value of ₹13,630 crore ($1.6 billion).

Mankind Pharma has positioned itself as a market leader in women’s health and fertility drugs while also providing access to other high-barrier products in critical care supported by advanced research and development (R&D) technologies, the company said in a statement.

BSV, with over 50 years of experience in biopharmaceuticals, has developed innovative biologic products in-house. The company has a strong R&D team and a diverse range of branded products in women’s health, fertility, and critical care, with some leading in their respective areas, the statement added.

Shares of Mankind Pharma were down 3.38% to 2,071.35, while the broader BSE Sensex index was up 0.84% to 80,710.90 in early morning trading on Friday.

“Women’s health and fertility segment has massive opportunity, along with strong growth visibility. BSV’s established platforms with a complex portfolio align with our vision. We are also delighted to welcome BSV’s 2,500+ members to our Mankind family,” Mankind Pharma vice-chairman and managing director Rajeev Juneja 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,” BSV chief executive and managing director Sanjiv Navangul said.

BSV reported revenues of ₹1,723 crore in FY24, or a 20% year-on-year growth with adjusted earnings before interest, depreciation and amortization (Ebitda) margins of 28%.

Pankaj Patwari, managing director at 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’.”

Moelis and Co. was the exclusive financial advisor and AZB and Partners the legal counsel to Mankind Pharma.

Jefferies LLC advised Advent and BSV while J.P. Morgan was financial advisor and Khaitan & Co the legal counsel.