Mankind Pharma has announced that it has entered into a definitive agreement to acquire a 100% stake in Bharat Serums and Vaccines (BSV) from private equity firm Advent International for an enterprise value of Rs 13,630 crore. This strategic move marks a significant leap for Mankind Pharma, positioning the company as a market leader in the Indian women’s health and fertility drug market, along with access to other high entry-barrier products in critical care supported by established complex R&D tech platforms.

BSV reported revenues of Rs 1,723 crore in FY24, achieving robust 20% year-on-year growth with adjusted EBITDA margins of 28%. The business has grown at a 21% revenue compound annual growth rate over the last three years. More than 2,500 BSV employees will join Mankind as part of this acquisition.

Founded in 1971, BSV began with Vinod Daftary opening a blood bank and eventually launching an injectable for expecting mothers. Over the years, the company expanded its operations, exporting polyclonal sera and establishing a manufacturing plant in Thane. BSV now boasts US FDA and EU-approved facilities in Germany and operates a wholly-owned subsidiary in the Philippines.

Advent International acquired a 74% 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 purchased the remaining 26% stake from the Daftary family in 2023-24.

Shweta Jalan, Managing Partner and Head of Advent India, stated, “Mankind’s investment in BSV is a testament to our approach of identifying and nurturing unique businesses, working with high-quality management teams, and building these businesses into respected industry leaders. With the building blocks in place, we are confident that Mankind Pharma and BSV’s management team will continue the accelerated journey to build one of India’s largest pharma companies.”

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. BSV’s established Specialty R&D Tech Platforms with complex portfolio across Women’s health, Fertility, critical care and Immunoglobulin segment perfectly aligns Mankind Pharma’s strategic vision to expand its footprint in high entry barrier portfolio. We are also delighted to welcome BSV’s 2,500+ members to our Mankind family. Together, we look forward to achieving even greater milestones and making a positive impact on women’s health worldwide.”

Pankaj Patwari, Managing Director, Advent India, said, “We are delighted that BSV has found the right home and is joining forces with Mankind Pharma. BSV’s deep-domain R&D capabilities and unique portfolio of products combined with Mankind’s strong pan-India coverage and growth orientation will provide significant synergies; bringing differential scale, reach and capabilities. We are excited for BSV to support Mankind’s aspirations of ‘Building a Healthier Bharat’.”

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

Sheetal Arora, CEO and Whole-Time Director of Mankind Pharma, added, “Mankind’s strategic acquisition of BSV with branded specialty pharma portfolio across India and Emerging Markets presents immense growth potential and will add to existing growth velocity of Mankind. Moreover, BSV’s business will be highly synergistic with our 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 specialized offerings.”

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.  This acquisition reinforces our commitment towards bringing cutting edge products and expanding our access to millions of patients in India and across the globe.  With a proven and established leadership in women’s health and critical care, our robust R&D pipeline, and best-in-class manufacturing, and above all, a dedicated and high-performing one-BSV team will add immense value to Mankind Pharma as we grow together, synergise our strengths and explore opportunities towards bringing healthcare closer to every home in India and across the world.”

Market Reaction
Following the announcement, shares of Mankind Pharma fell around 2.5% to a day’s low of Rs 2,090 on the BSE. The stock initially rose by 5% in early trade on the NSE, hitting a high of Rs 2,250 against the previous close of Rs 2,144.40. However, the gains were short-lived, and the stock was trading in negative territory shortly thereafter.

Moelis & Company acted as the exclusive financial advisor and AZB & Partners 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.

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