Mankind Pharma to Acquire Bharat Serums and Vaccines for $16.3 Billion, Strengthening Leadership in Women's Health and Critical Care

July 25,Mankind Pharma (“Mankind”), India’s fourth-largest pharmaceutical company, announced that it has entered into a definitive agreement with private equity firm Advent International (“Advent”) to acquire 100% of the shares of biopharmaceutical company Bharat Serums and Vaccines Limited (BSV) for ₹136.3 billion (approximately $1.63 billion).。

“Acquiring BSV is a key milestone in Mankind’s development journey, positioning us as the market leader in women’s health and fertility in India, while also granting us access to other high-barrier products in the critical care segment through our mature and sophisticated R&D technology platform,” said Rajeev Juneja, Vice Chairman and Managing Director of Mankind.

Affected by this news, Mankind closed up 1.51% on the day, with a market capitalization of approximately $10.21 billion.

BSV, founded by Vinod G. Daftary in Mumbai in 1971, is one of India’s fastest-growing biopharmaceutical companies.. The company focuses on the research and development, production, and marketing of biologics, biotechnology, and pharmaceutical formulations. Its product portfolio includes plasma derivatives, monoclonal antibodies, fertility hormones, antitoxins, antifungals, anesthetics, cardiovascular drugs, and diagnostic products. With over 50 years of development, BSV has become one of the few Indian biotechnology giants with global influence, operating in more than 70 countries and regions worldwide to serve patients globally.

BSV has currently developed a robust portfolio of branded products spanning women’s health, fertility, and critical care. Furthermore, BSV is one of the earliest manufacturers of gonadotropin biosimilars (including fertility hormones such as FSH, LH, and hCG) in India, with its products achieving multiple first-in-market milestones both domestically and globally.

In 2019, Advent acquired a 74% stake in BSV from the Daftary family for ₹35 billion (approximately $500 million). In 2022, Advent acquired the remaining shares, gaining full control of the company.Subsequently, Sanjiv Navangul, an industry veteran who previously worked at Johnson & Johnson and MSD Pharmaceuticals, was appointed as Managing Director and Chief Executive Officer of BSV.

Since then, BSV has embarked on an acquisition-driven expansion strategy in the field of women’s health to strengthen its product portfolio. For instance, in 2022, BSV acquired the pharmaceutical business of India-based healthcare management company TTK Healthcare and purchased the women’s health brand Tidilan from Jagdale Industries. Currently, BSV operates manufacturing facilities in Ambernath, Maharashtra, and Thane, maintains a research and development center in Navi Mumbai, and owns four wholly-owned subsidiaries in the United States, Germany, the Philippines, and India.

Under Advent’s leadership, BSV’s revenue tripled.According to BSV’s financial report, its revenue for fiscal year 2024 was ₹17.23 billion, representing a 20% year-on-year increase, with an EBITDA margin of 28%.. Of this, three-quarters of sales come from the women’s health sector, particularly follicle-stimulating hormone (FSH) used in assisted reproductive technologies such as in vitro fertilization (IVF). Over the past three years, the compound annual growth rate (CAGR) of revenue for this business has been 21%. BSV also stated that it expects sales to reach ₹20 billion in fiscal year 2025.

However, despite BSV’s strong market position in women’s health, its future development still faces numerous challenges due to the high concentration of its therapeutic areas, with over 80% of its revenue derived from critical care and women’s health.

To this end, earlier this year, Advent appointed JPMorgan and Jefferies to sell BSV. The valuation of BSV is estimated to be between $1.5 billion and $2 billion.The process of Advent’s sale of BSV attracted bids from numerous global private equity firms, including KKR, EQT, Blackstone Group, Bain Capital, The Carlyle Group, Partners Group, and Permira, as well as Mankind.。

Mankind, established in 1991, specializes in the development, manufacturing, and sales of various pharmaceutical formulations for the treatment of acute and chronic diseases, as well as a wide range of consumer health products.。

Within its pharmaceutical business, Mankind’s product portfolio encompasses anti-infectives, cardiovascular, gastrointestinal, antidiabetic, neurological/central nervous system (CNS), vitamin/mineral/nutritional supplements, and respiratory medications. Meanwhile, the company has also established a robust pipeline of investigational drugs spanning multiple therapeutic areas, including diabetes, inflammation, and oncology.

In its consumer healthcare business, Mankind operates in categories such as condoms, pregnancy tests, emergency contraceptives, vitamin and mineral supplements, and anti-acne formulations, holding leading brands across multiple categories. Among these, four consumer healthcare brands—Manforce, Prega News, Unwanted-72, and AcneStar—rank first in their respective categories.

Given its significant position in India’s pharmaceutical and consumer healthcare markets, several multinational pharmaceutical giants have extended acquisition offers to Mankind. Notably, Pfizer proposed an acquisition at a $2 billion valuation in 2012, but the deal fell through as Mankind’s management was not keen on selling.

On May 9, 2023, Mankind Pharma successfully went public, with a market capitalization approaching $7 billion, making it the largest IPO in India in 2023. As of July 25, 2024, Mankind’s current market capitalization stands at approximately $9.83 billion. Based on domestic sales within India, Mankind has become the fourth-largest pharmaceutical company in the country.。

Since entering the consumer healthcare sector in 2007, Mankind has rapidly established multiple differentiated brands in the categories of condoms, pregnancy tests, emergency contraceptives, antacid powders, vitamin and mineral supplements, and anti-acne preparations within just over a decade. Among these, its condom brand Manforce, pregnancy test kit brand Prega News, and emergency contraceptive brand Unwanted-72 all rank among the market leaders in domestic sales. Data shows that in 2022, the total addressable market for Mankind’s consumer healthcare business reached $2.5 billion.

Currently, India has become one of the fastest-growing pharmaceutical markets globally. Compared with other markets, India features lower regulatory pressure, reduced capital intensity, and favorable policies, providing profitability stability for business development. Data from the Indian Pharmaceutical Alliance (IPA) shows that the current total output value of India’s pharmaceutical industry is approximately USD 42 billion. The Indian government plans to increase the industry’s total output value to USD 65 billion by 2024 and double it to USD 120–130 billion by 2030. However, this growth is accompanied by intense industry competition.

Therefore,To maintain its market competitiveness and rapidly expand its product portfolio, Mankind is actively pursuing strategic acquisitions and external collaborations.. For example, the acquisition of Panacea Biotec’s domestic formulation business for ₹19 billion; the acquisition of Dr. Reddy’s baby soap brand Daffy and its anti-asthma brand Combihale.

In addition, Mankind has entered into collaborative licensing agreements with several multinational corporations (MNCs). In March 2024, it signed an exclusive agreement with AstraZeneca to secure the rights to market its anti-asthma drug Symbicort in India. In July 2024, it executed a non-exclusive patent licensing agreement with Takeda to commercialize Vonoprazan, a novel therapy for gastroesophageal reflux disease (GERD), under its own trademark in India.

To facilitate acquisitions and external collaborations, Mankind’s Board of Directors also approved an equity financing of INR 750 crore and raised the borrowing limit to INR 125 billion. As of March 31, 2024, Mankind had a net cash balance of INR 326 crore and minimal debt.

According to its disclosed fiscal year 2024 data, Mankind’s total revenue for the quarter ended December 31, 2023, amounted to INR 26.7709 billion, representing a year-on-year increase of 25.8% but a quarter-on-quarter decline of 3.29%. Among this, revenue from the consumer healthcare products business stood at INR 1.49 billion, a year-on-year decrease of 4.8%. Notably, 97% of Mankind’s revenue is derived from the domestic Indian market.

Therefore, for Mankind, BSV’s diversified product portfolio and strong market influence will serve as key drivers in maintaining and expanding its market presence.

Sanjiv Navangul, CEO and Managing Director of BSV, also stated, “Leveraging our proven leadership in women’s health and critical care, robust R&D pipeline, world-class manufacturing capabilities, and the highly efficient BSV team, we will grow together, capitalize on our strengths, and explore opportunities to bring healthcare closer to every household in India and around the globe, thereby creating substantial value for Mankind.”

In the open bidding war for BSV, other bidders and Mankind both held strategic advantages. However, Mankind has already reached an agreement with Advent, positioning it as the frontrunner in the acquisition of BSV, with both parties set to formally sign the transaction agreement in the coming days.. If the acquisition is successful, it will be the largest since Mankind’s listing and will position it as the leading player in India’s ₹1.1 trillion women’s health market.