Mankind Pharma open to acquisitions; board okays Rs 7,500 cr fundraise

Mankind Pharma, which reported an impressive 65 per cent jump in its profit for March quarter of 2023-24 on Wednesday, is looking for assets for acquisition with a focus on chronic, consumer and high-entry barrier segments that complement and add value to the company.

And for this, the company’s board has approved a fundraise of up to Rs 7,500 crore, the firm’s top management said in a post results analyst’s call. 

Replying to analyst queries on the proposed fundraise, Rajeev Juneja, Vice Chairman and Managing Director of Mankind Pharma, said that the board approved the fundraise via issuance of equity shares in an enabling resolution for keeping its war chest ready if an opportunity arises.

The drug maker was reportedly interested in buying private equity (PE) firm Advent International’s stake in Mumbai-based biopharma firm Bharat Serums and Vaccines (BSV).   

BSV is a leading maker of injectable biological and pharmaceutical products. The company operates in women’s healthcare, assisted reproductive treatment, critical care and emergency medicine in India and emerging markets.

The biopharma firm also has wholly-owned subsidiaries in the USA, Germany, Malaysia and the Philippines. In Germany it manufactures therapeutic proteins derived from natural sources. 

Mankind Pharma has been focussing on the women’s health segment, it recently launched a medication to treat endometriosis in women. It was also setting up a Rs 300 crore facility to make fertility hormones in Rajasthan. 

While several media reports had pegged a $2bn valuation for the 100 per cent stake that Advent owns in BSV, Mankind Pharma informed the stock exchanges that the reports were “speculative in nature and there are no events which warrant a disclosure”. 

“As part of the growth initiatives, the company continues to explore opportunities for inorganic growth from time to time. The company has always followed best practices for disclosure of material events at the appropriate time and will continue to do so,” Mankind Pharma said in its regulatory filing on the BSE.