Mankind Pharma Limited has successfully completed the acquisition of a 100% stake in Bharat Serums and Vaccines Limited (BSV) for a total cash consideration of ₹13,768 crore. This strategic acquisition, first announced on July 25, 2024, was completed on October 23, 2024, in alignment with the terms outlined in the share purchase agreement.
The acquisition positions Mankind Pharma as a market leader in the Indian women’s health and fertility drug market, while also expanding its portfolio in the critical care segment. With BSV’s established R&D platforms and niche biologic products, Mankind is poised to leverage synergies in commercial operations, manufacturing, and distribution.
Key Highlights of the Acquisition:
Strategic Portfolio Expansion: The acquisition strengthens Mankind Pharma’s position in women’s health, with a comprehensive offering in the fertility segment. BSV’s products in critical care and immunoglobulins will enhance Mankind’s presence in highly specialized and high entry barrier markets.
Financial Impact: The acquisition was funded through a combination of internal accruals and external debt, using a mix of Non-Convertible Debentures (NCDs) and Commercial Papers. Mankind Pharma may consider a potential equity raise to retire part of the debt, maintaining a Net Debt to EBITDA ratio below 2x by FY26.
Leadership Commentary:
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- Rajeev Juneja, Vice-chairman and Managing Director of Mankind Pharma, stated, “This acquisition marks a significant leap for Mankind Pharma, positioning us as a leader in the women’s health and fertility market, while bolstering our capabilities in critical care and complex R&D platforms.”
- Sheetal Arora, CEO and Whole-time Director, emphasized that the acquisition will drive revenue growth and EBITDA margin improvements while unlocking new opportunities for Mankind’s existing specialty portfolio.
- Sanjiv Navangul, MD & CEO of BSV, shared, “This acquisition allows BSV to expand its reach and enhance patient outcomes, joining the Mankind family with a shared commitment to innovation and growth.”
Business Synergies:
The acquisition of BSV enhances Mankind Pharma’s R&D capabilities, allowing the company to scale its complex biologics and immunoglobulins pipeline and expand in both Indian and international markets. The move is expected to be EBITDA margin-accretive and supports Mankind’s growth strategy.
