Mankind Pharma to acquire BSV for ₹13,630 Crore

26 Jul 2024 , 11:05 AM

Mankind Pharma, India’s fourth largest pharmaceutical business by market share, is going to acquire BSV Group, previously Bharat Serum & Vaccines, from Advent International for roughly ₹13,630 Crore, according to sources familiar with the matter. Mankind will outbid a partnership led by EQT and the Abu Dhabi Investment Authority (ADIA).

Both sides are in the closing stages of discussions, and a formal announcement is likely within the next several days. Once revealed, this will be the largest buyout ever by the company, which was listed a year ago.

The third applicant, a consortium consisting of Warburg Pincus, ChrysCapital, and Mubadala, did not submit a binding offer despite being shortlisted from a larger pool of potential final bidders.

In May, Mankind’s board approved an equity fund raising of ₹7,500 Crore and raised borrowing restrictions to ₹12,500 Crore. As of March 31, 2024, Mankind’s net cash position was ₹3,260 Crore, with no debt. In 2022, the pharma bought Panacea Biotec’s domestic formulation division for ₹1,900 Crore. Dr. Reddy’s also sold it the newborn soap brand Daffy and the asthma treatment brand Combihale.

Mankind has signed an in-licensing arrangement with Novartis for the heart failure treatment Neptaz. Earlier this week, it also signed a non-exclusive patent licensing arrangement with Japanese drugmaker Takeda to commercialise the latter’s Vonoprazan in India.

Vinod G Daftary founded Bharat Serums in Mumbai in 1971. The company develops, manufactures, and markets specialist injectable pharmaceuticals, with a focus on biotech and biological products. The company has a presence in women’s health, assisted reproductive treatment, critical care, and emergency medicine.

At around 11.02 AM, Mankind Pharma was trading 2.99% lower at ₹2,080.30 per piece, against the previous close of ₹2,144.40 on NSE. The counter touched an intraday high and low of ₹2,250, and ₹2,077.05, respectively.

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