Biotech firm Bharat Serums & Vaccines working to reduce import dependence

Firm is develop recombinant products in hormones, eyes acquisitions in South East Asia

Bharat Serums and Vaccines (BSVL), a biotech firm based in Mumbai, says it is now working to have more control over its supply chain, reduce import dependence and develop recombinant products in hormones. It is also eyeing acquisitions in South East Asia.

Recombinant products are made in the laboratory, and not from human blood or any human fluid. Thus, such manufacturing is insulated from global supply chain disruptions.

Speaking to Business Standard, BSVL MD and CEO Sanjeev Navangul said the firm is working on developing cell-lines, so that it can begin production of its hormone products with its own starting materials.”We have already achieved this for follicle stimulating hormone (FSH), and aim to do this for more products now. We will have our cell lines ready by next year,” he said.

Typically ingredients or raw materials for biological products have sources in natural products. Navangul says that human urine is one common source. “Global supplies come from China, Netherlands. And prices have increased over the past few quarters. In contrast, recombinant products move away from the human origin material; they are safer and equally effective,” he explained.

The company has enhanced its manufacturing capacity by 1.5-times with internal capex of over Rs 100 crore in the last two years and through partnerships with contract manufacturing organisations. It will invest another Rs 100 crore on the Hyderabad plant to make injectables for women’s health and critical care business. The German plant that caters to the US, Japan and other European countries will also be expanded.

It is also working on reducing overall import dependence.

“Our import dependence has reduced significantly from 53 per cent in FY20 to close to 26 per cent in the current year. Automation in the supply chain has led to supply securities.  Forecast accuracy has improved by 10-12 percentage points,” Navangul said.

“We have been developing alternate vendors especially for the vials and other product packaging that has resulted in reduced import dependency from 47 per cent to 28 per cent,” he added.

BSVL’s focus on women’s healthcare has increased over the years.

Advent International backed BSVL does not disclose exact numbers, but Navangul says that they have close to 35 per cent share in the women’s health, hormones, fertility treatment, and a 100 per cent share in in Anti- D Immunoglobulins and close to 43% market share in the Amphotericin B segment.

“We have doubled revenue in the last two years. Our profitability has improved by 800 bps,” he added.

“We spend almost 7-8 per cent of our revenues on innovative R&D, which differentiates us from the rest. Our focus area clearly remains on building BSV into a science-driven biopharma leader,” Navangul said. “We are also building a new portfolio on devices & diagnostics opportunities in our core therapy areas of women’s health, fertility and critical care,” he added.

It has more than 10 products in our internal R&D pipeline in various stages of development- four products in women’s health & fertility area, four anti-infective products, one in oncology or transplant and couple of regional anti-snake venom therapies

Currently, 60 per cent of its revenues come from the international market and 40 per cent from the domestic market. Both these segments have had a CAGR of 20 per cent, the company claimed.

“Over the last few years we have Increased our footprint in the Philippines, Guatemala, Ivory Coast, Nigeria, Peru, to name a few.  Today, we are one of the leading pharma companies in the Philippines, particularly in Women’s Health. We are currently exploring a few acquisitions in SE Asia. We foresee our international business to grow over ~$150 mn revenue by FY25,” Navangul said.

Overall, our employee strength has grown by over 1000 people in the last few years, Navangul said. “Our domestic field force has doubled in the last three years,” he added.

Bharat Serums says its revenues doubled in last 2 years

Looking for acquisitions in SE Asia

Trying to develop recombinant products in-house

10 products in pipeline in R&D