Mankind Pharma is contending with a consortium led by Europe’s largest buyout group EQT and the Abu Dhabi Investment Authority (ADIA) to purchase BSV Group (formerly Bharat Serums and Vaccines) from Advent International, according to a report by The Economic Times. The acquisition is valued at approximately Rs 14,000 crore ($1.67 billion).
The final decision on the sale is anticipated this week.
BSV Group sale details
Founded in 1971 by Vinod G Daftary in Mumbai, Bharat Serums specialises in developing and manufacturing injectable medicines, with a focus on biotech and biological products. The company’s product portfolio spans women’s health, assisted reproductive treatments, critical care, and emergency medicine.
BSV has a diverse product portfolio, including plasma derivatives, monoclonal antibodies, fertility hormones, antitoxins, antifungals, anaesthetics, cardiovascular drugs, and diagnostic products. The company has a strong R&D focus, resulting in around 15 patents granted across several countries, including the US, Europe, Australia, and Japan. In recent years, BSV expanded its international presence, acquiring Firstline Pharmaceuticals and Genomicks in Malaysia, and the human pharma division of TTK Healthcare in India.
In 2019, Advent International acquired a 74 per cent stake in BSV from the Daftary family for Rs 3,500 crore ($500 million), and in 2022, Advent purchased the remaining shares, gaining full control of the company. Subsequently, industry veteran Sanjiv Navangul, formerly with Janssen (a pharmaceutical division of Johnson & Johnson) and MSD Pharmaceuticals, was appointed as managing director and chief executive.
Despite its strong market position, BSV faces challenges due to its high therapeutic segment concentration, with over 80 per cent of revenues derived from critical care and women’s health.
Advent International appointed JP Morgan and Jefferies to facilitate the sale of the biopharma firm.
Mankind Pharma’s acquisition spree
Mankind, India’s fourth-largest pharmaceutical company by market share, is actively pursued strategic acquisitions, such as the domestic formulation business of Panacea Biotec for Rs 1,900 crore and the acquisition of infant soap brand Daffy and anti-asthma brand Combihale from Dr Reddy’s. The company also has significant in-licensing agreements, including with Novartis for heart failure therapy Neptaz and Takeda for commercialising Vonoprazan for gastroesophageal reflux disease (GERD) in India.
Mankind’s board also approved an equity fund-raising of Rs 7,500 crore and increased borrowing limits to Rs 12,500 crore. As of March 31, 2024, Mankind holds a net cash balance of Rs 3,260 crore with minimal debt.
EQT seeks expansion in women’s health portfolio
EQT, which recently acquired a controlling 60 per cent stake in Indira IVF for $1.1 billion, sees potential synergy with BSV due to its strong focus on women’s health and fertility treatments. Three-fourths of BSV’s sales come from women’s health products, particularly those used in assisted reproductive treatments. BSV is also a leading manufacturer of fertility hormones in India.
The acquisition of BSV Group is poised to significantly impact the pharmaceutical landscape, with Mankind Pharma and EQT both strategically positioned to benefit from its diverse product portfolio and strong market presence. A decision on the winning bid is expected soon, which would mark a major development in the biopharma industry.
First Published: Jul 18 2024 | 12:07 PM IST
