Mankind Pharma acquires Bharat Serums and Vaccines for Rs 13,600 crore

Mankind Pharma on Thursday said it has entered into a definitive agreement to acquire a 100 per cent stake in Bharat Serums and Vaccines (BSV) from private equity firm Advent International for an enterprise value of Rs 13,630 crore.

BSV reported revenues of Rs 1,723 crore in FY24, delivering robust 20 per cent year-on-year growth with adjusted EBITDA margins of 28 per cent. The business has grown at a 21 per cent revenue compound annual growth rate over the last three years.

More than 2,500 BSV employees will be joining Mankind.

The company was set up in 1971 with Vinod Daftary opening a blood bank and eventually launching an injectable for expecting mothers. Over the next few years, the company started exporting polyclonal sera and also set up a manufacturing plant in Thane. It has US FDA and EU-approved facilities in Germany and operates in the Philippines through a wholly-owned subsidiary.

 

Private equity major Advent International was looking to exit BSV four years after it picked up a majority stake in BSV. Advent acquired a 74 per cent stake in BSV in February 2020, providing a complete exit to private equity investors OrbiMed Asia and Kotak PE and a partial exit to the promoter Daftary family. Following approval from the Department of Pharmaceuticals (DoP), Advent bought the remaining 26 per cent stake from the Daftary family in 2023-24.

Shweta Jalan, managing partner and head of Advent India, said that Mankind’s investment in BSV is a testament to their approach of identifying and nurturing unique businesses, working with high-quality management teams and building these businesses into respected industry leaders.

Mankind Pharma said that this strategic move marks a significant leap for the company, 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. It has a strong portfolio across women's health, fertility, and critical care.

Rajeev Juneja, vice-chairman and managing director of Mankind Pharma, said, “BSV’s acquisition represents a pivotal milestone in Mankind’s journey, establishing us as the market leader in the Indian women’s health and fertility segment. We believe the women's health and fertility segment has massive opportunities along with strong growth visibility globally, led by structural tailwinds." He added that this strategic move aligns with Mankind's vision to expand its footprint in high entry-barrier portfolios.

BSV has an R&D centre with over 60 scientists and a strong product pipeline. Mankind said the domestic product portfolio has huge scalability potential through niche filings across markets. The women's health portfolio has products ranging from fertility drugs to post-pregnancy therapies. Amid increasing IVF penetration, this offers growth potential. Around 20 million couples in India alone experience infertility, which affects 60–80 million couples globally. BSV has products for conditions like endometriosis, a condition that affects 109 million women worldwide and around 25 million in India.

Sheetal Arora, chief executive officer and whole-time director of Mankind Pharma, said BSV’s business will be highly synergistic with their 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 specialised offerings," Arora said.

Sanjiv Navangul, CEO and managing director of 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."

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.